Responsible Procurement Ensuring efficient compliance in Challenging - - PowerPoint PPT Presentation

Responsible Procurement Ensuring efficient compliance in Challenging Supply Chains

Siri Engesæth, CEO (siri@factlines.com) Dagny Nome, Senior CSR Specialist (dagny.nome@factlines.com)

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short & sweet

Key challenges

Nordic laws regulate public purchasing Example from Norway

Entered into force Jan.1, 2017 – the relevant paragraph §5 and appendix 5. ”Public purchasers must ensure proper procedures to promote respect for fundamental human rights”

• All suppliers must be able to show rutines to uncover potential breaches of human rights

regulations, environmental conventions and social, labour conditions as specified in the appendix

• All suppliers must have procedures to ensure adherence to the requirements.
• All suppliers must be able to provide risk evaluations of relevant products, product-

components, services and processes.

In EU – part of the 20/20/20-strategy

Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC Text with EEA relevance In force 18.4.2016.

• confirming that the principle of equal treatment applies to national procurement

procedures and public contracts. By Article 18 the new Directive requires for the first time that: Member States shall take appropriate measures to ensure that in the performance of public contracts economic operators comply with applicable obligations in the fields

• f environmental, social and labour law established by Union law, national law,

collective agreements or by the international environmental, social and labour law provisions listed in Annex X.

http://www.edf.org.uk/blog/eu-procurement-directive/

But this isn’t relevant for me, is it?

High risk products according to DIFI

• Exotic fruits
• Surgical instruments
• Furniture
• Cut flowers
• Office supplies
• Electronics and

communications

• Textiles and shoes
• Building materials
• Coffee, tea and cocoa
• Toys and sports

equipment

City of Oslo requires compliance..

”In order to qualify for the bidding process, the supplier must have a quality assurance system that enables systematic follow-up of ethical requirements throughout the supply chain and can document traceability for the goods included in the contract.

City of Copenhagen, too

Responsible supply chain management

Forankre

Implement

Forankre

Survey

Forankre

Dialogue and improvement

• Establish

guidelines (Code of Conduct)

• Implement

internally and with suppliers

• Include evaluation

in prequalification and tenders

• Supplier self assessment
• CSR system
• Country of production
• Use of sub suppliers
• Environmental screening
• Supplier action plan
• Overview key risks
• Establish KPIs

Risk management Supplier dialogue Continous improvement

Components in Factlines

Code of Conduct

Supplier Self Assessment

The self assessment is the foundation for a systematic dialogue with potential and existing suppliers Status on the suppliers work with CSR, including Code of Conduct and management systems follow up and risk evaluation Extent of supply chain (sub suppliers) Suppliers own risk evaluation for violations to labour or human rights, environment and anti-corruption

The suppliers first contact

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Data starts arriving

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Process and methodology

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a) From Code of Conduct to Self-Assessment Questionnaire (SAQ) b) Distribution c) Gathering information d) What does it tell us? e) What can we do about it? f) Circle closed – ready for next round

Survey reporting and analysis

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Individual supplier reports facilitates dialogue and improvement Full overview shows main risks and areas for action

Factlines – the full chain perspective

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Supply chain transparency Report once – accepted everywhere: no more audit fatigue Information furnished and updated by the source Responsible procurement, because better knowledge means better decisions

Documentation for bid-processes

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Case

Norwegian Hospitality Association NHO Reiseliv Innkjøpskjeden

NHO Reiseliv

NHO Travel Association Procurement 2 700 members 140 suppliers

Procurement via portal (millum.no)

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”By using Factlines tool and services we now have an integrated system to ensure the suppliers we approve for our 2700 members are compliant. The supply chain management is radically easier and more efficient, and it makes it easier to achieve continous improvmeents in the the supply chains.” Morten Karlsen, director of purchasing the Norwegian Hospitality Association

Reference

ww.factlines.com