supplier development programME (SDP) INTRODUCTION How is the DT - - PowerPoint PPT Presentation

supplier development programME (SDP) INTRODUCTION

How is the DT supplier development programme different?

How do you stop “inspecting in” sustainability and CSR and engage and motivate suppliers to really want to become best practice in sustainability and achieve a lasting change of attitude and reduce the need for audits? How do you use sustainability to deliver lower cost suppliers, higher quality products and higher service levels - delivery

• f business benefits

How do you address transparency and “through supply chain” reach of your programme? How do you really get the interest of your colleagues in

• perations, procurement and marketing?

How do you achieve the above goals at scale and at low cost in terms of €€ and effort?

Based on the experience of the DT stand alone programme (Pilot) we are transitioning our learnings to a wider industry programme aiming for bottom line benefits that delivers implementation of sustainability best practice

Critical sustainable supply chain questions:

How does the OLD & NEW DT programme work?

Steering group of participating GeSI members GeSI member volunteer project manager

Educational portal Suppliers provide performance data online Estimation of €€ benefits Implementation training and consultancy support (at cost to supplier if if supplier chooses) Support with individual Improvement planning, target setting and benefits case

• supplier and GeSI

GeSI record & verify results

Suppliers invited to join

Suppliers update results achieved – GeSI verify GeSI report results against the SDG framework

 Quality defects cut by 50%  Productivity increase of 15%  Energy consumption cut by 20%  Waste savings through introduction of recycling  Supply chain cost saving of 5%  Typical product savings of 5%

Exemplary supplier bottom line benefits Exemplary “brand” benefits

 Customer complaints cut by 50%  Platform for green product innovation  Measured results against SDG’s, through the supply chain, for reporting and stakeholder engagement purposes  Lasting change – reduced auditing and monitoring costs

What do we mean by measurable bottom line

benefits?

thank you!

Document Classification: EcoVadis Public

En Engaging Su Suppliers in in CS CSR

1

Document Classification: EcoVadis Public

Ec EcoVadis: : Glo lobal, al, Re Reliable Ra Rati tings

2

Buyers Suppliers

Document Classification: EcoVadis Public

Su Sustainable Proc

• curement Virtuou
• us Circle

Buyers Suppliers

CSR Improvements

Business Incentives, communication

Ratings/Benchmarks Feedback

Gl Glob

• bal

Ea Easy sy to use Re Reliable

Document Classification: EcoVadis Public 4

Ca Case example 1

Drivers / Challenges

• Risk management and compliance
• Building partnerships with our suppliers
• Value creation through innovation (preferred suppliers)
• Increased stakeholders expectations
• CSR as a competitive advantage

Best Practices Supplier engagement

• Use EcoVadis score in supplier overall capability assessment
• Contract clause: Supplier Code of Conduct
• Corrective Action Plans if EcoVadis score < 44
• ‘Every Buyer, Every Visit’ program
• Supplier satisfaction surveys
• CSR-Committee
• Low EcoVadis score suppliers get audited

Results

• Solvay has identified about 1.000 critical

suppliers

• 66% response rate
• Coverage 65% of Solvay’s spend

Document Classification: EcoVadis Public 5

Ca Case example 2

Drivers / Challenges

• Risk management and compliance
• Responsible corporation
• Increased stakeholders expectations
• CSR as a competitive advantage
• Manage a large and growing portfolio spend (5.8 Billion Euros)
• Manage newly acquired BUs specificities (policies, processes)

Best Practices Supplier engagement

• EcoVadis score weigh in on supplier overall assessment
• Contract clause: Supplier charter
• Direct CSR discussion with Suppliers (It’s crafted depending
• n their CSR maturity)
• EcoVadis assessment score > 40 by spend and key suppliers

Results

• Increase in numbers of suppliers launched in

campaigns in 2016

• Achieving an average score of 48
• During supplier selection, EcoVadis score

accounts for at least 5 to10% of the Sourcing Decision Grid