supplier development programME (SDP) INTRODUCTION
How is the DT supplier development programme different? Critical sustainable supply chain questions : 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? Based on the experience of the DT How do you use sustainability to deliver lower cost suppliers, stand alone programme (Pilot) we are higher quality products and higher service levels - delivery transitioning our learnings to a wider of business benefits industry programme aiming for bottom How do you address transparency and “through supply line benefits that delivers chain” reach of your programme? implementation of sustainability best How do you really get the interest of your colleagues in practice operations, procurement and marketing? How do you achieve the above goals at scale and at low cost in terms of €€ and effort?
How does the OLD & NEW DT programme work? Suppliers invited to join Steering group of GeSI member volunteer Educational portal participating GeSI project manager Suppliers provide performance data online members Estimation of €€ benefits Suppliers update results Implementation training and Support with individual GeSI record & achieved – GeSI verify Improvement planning, consultancy support (at cost to verify results supplier if if supplier chooses) target setting and benefits case - supplier and GeSI GeSI report results against the SDG framework
What do we mean by measurable bottom line benefits? Exemplary “brand” benefits Exemplary supplier bottom line benefits Quality defects cut by 50% Customer complaints cut by 50% Productivity increase of 15% Platform for green product innovation Energy consumption cut by 20% Measured results against SDG’s, Waste savings through through the supply chain, for introduction of recycling reporting and stakeholder engagement purposes Supply chain cost saving of 5% Lasting change – reduced Typical product savings of 5% auditing and monitoring costs
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En Engaging Su Suppliers in in CS CSR 1 Document Classification: EcoVadis Public
Ec EcoVadis: : Glo lobal, al, Re Reliable Ra Rati tings Buyers Suppliers 2 Document Classification: EcoVadis Public
Sustainable Proc Su ocurement Virtuou ous Circle Business Incentives, communication Ratings/Benchmarks Feedback Gl Glob obal Buyers Suppliers Re Reliable Ea Easy sy to use CSR Improvements Document Classification: EcoVadis Public
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 Results Use EcoVadis score in supplier overall capability assessment • Contract clause: Supplier Code of Conduct • Solvay has identified about 1.000 critical Corrective Action Plans if EcoVadis score < 44 • • suppliers ‘Every Buyer, Every Visit’ program 4 • 66% response rate • Supplier satisfaction surveys • Coverage 65% of Solvay’s spend • CSR-Committee • Low EcoVadis score suppliers get audited • Document Classification: EcoVadis Public
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 Results Increase in numbers of suppliers launched in EcoVadis score weigh in on supplier overall assessment • • campaigns in 2016 Contract clause: Supplier charter • 5 Achieving an average score of 48 • Direct CSR discussion with Suppliers (It’s crafted depending • During supplier selection, EcoVadis score • on their CSR maturity) accounts for at least 5 to10% of the Sourcing EcoVadis assessment score > 40 by spend and key suppliers • Decision Grid Document Classification: EcoVadis Public
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