Transcript Sales presentation - Chartered Institute of Procurement

Sustainable Procurement –
are we prepared for the challenges?
Sandy Duncan
CIPS Yorkshire Branch
Email: [email protected]
LinkedIn Group: CIPS Yorkshire Branch
Twitter: @yorkshirecips #cipsyorks
Welcome to The Rose Bowl
Leading global excellence in procurement and supply
Sustainable Procurement –
are we prepared for the challenges?
• Tonight’s Agenda
– Welcome and Introductions
18:15
– Sustainable Procurement what is it & is it important?
• A personal view from Sandy Duncan, Sourcing Manager, Lloyds Banking Group
– Sustainable Procurement – are we prepared?
• Survey findings and best practice overview from Dr. Alfred Chinta, Senior Lecturer –
Supply chain management & Course Leader - MSc Supply chain management, Leeds
Metropolitan University
– Delivering Social Value - procurement’s role?
• Sustainable Procurement, beyond just green issues - Bernadette Speight, Social
Value & Social Enterprise Development Specialist from People Help People
– Q&A Session
– Any Other Business
– Event Close and Informal Networking
20:10
Leading global excellence in procurement and supply
Sustainable Procurement –
What is it and is it important?
A Personal View
Leading global excellence in procurement and supply
The Big Picture – The World is Changing
Leading global excellence in procurement and supply
And Procurement Needs To Change Too
o All too often we are still seen as; transaction, cost
focused and tactical
o But many have moved (or are moving) to become;
more strategic, value add and embedded
o What does this mean in respect of Sustainable
Procurement?
Leading global excellence in procurement and supply
My Personal View
o Value Chain – Understand the end to end
process and impacts
o Strategy – Society should be placed at
the centre of our thinking
o People – Good people want to work for
good businesses, growing importance in
attracting and retaining talent
o Reporting – Measure material things,
“roughly right v’s accurately wrong”
The Classic Sustainability
Model
o Key Challenges – supply chain resilience,
safety/no-harm and innovation/value
release – inc. Social Vlaue
Leading global excellence in procurement and supply
Sustainability : Are we prepared for the challenges
Dr.A.C.Chinta
Senior Lecturer - Supply chain management
Leeds Metropolitan University
Why study sustainability?
•
•
•
•
•
Increased focus by the governments
Demand from customers
Demand from Investors
Supply chains shoulder the responsibility of implementation
Aid policy formation for training and education at Universities
and CIPS
• Gauge Supply chain pressures
The Survey
•
•
•
•
•
Covered CIPS members in Yorkshire and Northeast
124 responses
Collected over a 4 week period
Conducted by electronic means
Anonymous
3.Percentage of total spend on
sustainable products and services
% of proc spend on sus prod and services
9.2
Don't know / Can't remember
5.9
Between 5% and 25%
5.9
41.2
Less than 5%
14.3
More than 50%
Between 26% and 50%
23.5
No answer
4. Sustainability spend in 3 years time
Sus spend in 3yrs time
2%
11%
21%
10%
Neither increase nor decrease
Don't know
Increase
10%
Increase significantly
Blank
Decrease
46%
5.Is sustainability a part of initial
Supplier evaluation
Initial supplier evaluation
1%
12%
14%
No
Yes
Sometimes, depending on the supplier's products
and services
Blank
35%
38%
Don't Know
6.Is sustainability a part of your regular
supplier performance reporting criteria?
Is sustainability a part of your regular supplier performance
reporting criteria?
17
31
3
No
Yes
Sometimes, depending on the supplier's products and services
46
27
Don't know
No Reply
7. Which, if any, of these measures does your
organisation use to assess suppliers' sustainability?
8-Which, if any, of these measures does your organisation use to assess suppliers' sustainability?
70
60
50
40
30
20
10
0
Energy usage
Carbon footprint Use of sustainable Life cycle analysis
material(s)
Water
consumption
We do not
measure
suppliers'
sustainability
Don't know
Other (please
specify)
8.Do your key customers require you to use
sustainable suppliers / raw materials?
16-Do your key customers require you to use sustainable suppliers /
raw materials?
11
24
19
No
Some prefer it, but it's not mandatory
Don't know
19
Yes, some of them
42
Blank
9
Yes, most of them
9.To what extent do you agree or disagree with the following
statements about procuring sustainable products?
50
45
40
35
30
Agree
25
Disagree
Strongly agree
20
Blank
15
Strongly Disagree
Don’t Know
10
5
0
It is difficult to
It is difficult to
There is a lack of There is a lack of
locate sustainable assess sustainable understanding by understanding by
suppliers
measures
suppliers about
management
sustainable
about sustainable
products
products
There is a lack of
a commonly
understood
standard for
sustainable
products
Sustainable
products are of
poor quality
Sustainable
products are not
a cost-effective
option
10.Qualification of respondents
35.00
29.03
30.00
27.42
25.00
21.77
20.00
16.13
15.00
% of respondents
11.29
10.00
9.68
5.65
5.65
5.00
0.81
0.00
CIPS
CIPS Advanced CIPS Diploma CIPS Advanced
CIPS
Certificate
Certificate
Diploma
Professional
Diploma
Bachelors
degree
Masters in Masters in any Doctorate Procurement other area,
PhD, DBA
or Supply including MBA
Chain
Management
15.What is the primary source of your
training on sustainability?
6%
3%
No info
24%
9%
CIPS training
I haven't received any sustainability
training
Internal training organised in the
organisation
19%
External training by a consultant
18%
Self Taught
University degree
21%
17. Employees in procurement
35-How many employees in your organisation are involved in
procurement?
2% 3%
17%
23%
One
2 to 5
6 to 15
16 to 50
15%
Over 50
Blank
Don't Know Can't remember
26%
14%
19-In which sector is your organisation based?
Blank
Manufacturing
2%
1%
2%
2%
3%
Public administration and defence; compulsory social security
2%
Education
26%
6%
Other (please specify)
3%
Electricity, gas, steam and air conditioning supply; water
supply, sewerage, waste management and remediation
activities
Human health and social work activities
21%
14%
Real estate activities; professional, scientific and technical
activities; administrative and support service activities
Accommodation and food service activities
Financial and insurance activities
7%
11%
Info on the sample of respondents
• Mainly from large businesses with more than £35
million turnover
• 70% with more than 2 years of experience in
procurement
• More than 70% have a sustainability policy
• Mostly buyers, Supply chain managers, procurement
Directors
Key Findings of the Survey
• Most businesses have a Sustainability policy
• Few small businesses have participated
• However very few enforce sustainability as a
requirement for their suppliers
• Many businesses do not report sustainability as part
of their procurement reports
• Most respondents are full members of CIPS
Conclusions from the survey
• There is some understanding of Sustainability but it is
varied
• Confusion on standards for Sustainability
• CIPS and University degrees are primary source of
knowledge
• Need for clearer guidelines for procurement
professionals to evaluate and select suppliers
• Sustainable procurement needs significant
improvement
Challenges to procurement due to
Sustainable requirements
•
•
•
•
Lack of knowledge internally – standards,
Lack of knowledge externally in the supply chain
Setting the right targets
Keeping focus - as Sustainability is achieved over the
long term
• Redesign and re-evaluate procurement strategies
Defining “sustainability”
•
Sustainable development has been influentially defined as
“development that meets the needs of the present without
compromising the ability of future generations to meet their
own needs” (WCED, 1987)
• “Sustainability can be thought of as a process, as opposed to
an end-state (Parker, 2002)
• Global reporting initiative G4 guidelines provide a standard
for all companies to report their sustainability initiatives
• Rauch and Newman(2008) define metrics for sustainability in
four areas of emissions, water, energy and material use
Reporting Sustainability-Evidence from
Supermarkets
• Tesco-Tesco knowledge hub, Overall Carbon
footprint
• Sainsbury-Responsible sourcing, puts all waste to positive use,
difference to community, great place to work
• Marks and spencer-19% of food products meet sustainability
standard, 100% palm oil is RSPO certified, 85 clothing suppliers use energy
efficient practices, 0 construction waste to landfill, 34% increase in energy
efficient 68% reduction in A/c emissions
• ASDA-Reduced waste, expanded locally grown produce, support women
around the world, Renewable energy, direct farm program, diversity and
inclusion
• Morrison’s-Responsible sourcing, healthy lifestyles, reducing impact,
colleagues, engage with communities
FMCG Companies
•
Unilever
–
–
–
–
–
–
–
–
–
–
–
embedding sustainability
health & hygiene
improving nutrition
greenhouse gases
water use
waste & packaging
sustainable sourcing
fairness in the workplace
opportunities for women
inclusive business
sustainable living news
• P&G
– Resource & Waste Summary
– Energy
– Waste
– Emissions
– Water
– Compliance
– Employees
• Nestle
– environment impact,
– nutrition health and wellness,
– social impact
From awareness to implementation – How
can procurement professionals respond?
• Undertake an audit of the business
• Identify gaps in knowledge
• Identify how sustainability will be measured and
reported – work with key stakeholders
• Identify improvements to be made to procurement
processes to conform to sustainability requirements
• Transfer “sustainability in procurement” knowledge
internally and externally
Sustainability model (Hogevold, Svensson, 2014)
References
•
•
•
•
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Parker, H.W. (2002), “Sustainability as a process”, in Sikdar, S.K. (Ed.), Sustainable
Engineering Conference Proceedings, American Institute of Chemical Engineers
Annual Meeting, November 3-8, pp. 2-12.
G4 (2014) G4 Sustainability reporting guidelines, Available at
https://www.globalreporting.org/resourcelibrary/GRIG4-Part2-ImplementationManual.pdf, Accessed on [11-06-14]
Forbes (2014) The World's Most Sustainable Companies Of 2014, Available at
http://www.forbes.com/sites/jacquelynsmith/2014/01/22/the-worlds-mostsustainable-companies-of-2014/ Accessed on [11-06-14]
Confino,J.(2014)Best practices in sustainability: Ford, Starbucks and more –
Available at [http://www.theguardian.com/sustainable-business/blog/bestpractices-sustainability-us-corporations-ceres] Accessed on [11-06-2014]
Tesco (2013) What matters now: using our scale for good, Available at
http://www.tescoplc.com/files/pdf/reports/tesco_and_society_2013_ipad.pdf ,
Accessed on [11-06-2014]
•
Hogevold and Svensson (2012) A business sustainability model: a European case
study, Journal of business and industrial marketing, 27/2, 142-151.
Bernie Speight
People Help People
One week left to apply – Social Enterprise
UK have support programme for Health –
bringing CCG’s procurement & suppliers
together to co-design what social value
will look like and how it will be measured
& evidenced in your area.
www.socialenterprise.org.uk
Our Vision
An inclusive society where people help
each other for the greater good of humanity
Our Mission
Harnessing our knowledge and experience we
enable people to focus their passions and talents,
in collaboration with others, to achieve
sustainable & positive change in society

Objectives
Values
Activities
Outputs

Outcomes

Impact



– what you want to do
– how you will deliver
– individual tasks or projects
– the quantitative countable
stuff
– the qualitative stuff / change
that happens quickly
- longer term sustained change
 Values
– Walk the Talk.
 Outcomes – the change you
empower
 Evidence – the story, testimony
 Improvement and innovation
 Added value / Value for money
How can you PROVE?
What has happened as a result of your
actions?
 What difference has it made?
 More qualitative…
 Records the change…
 Requires consultation with
stakeholders…

Supporting you to deliver social value




Building Social Value Programme
Building Social Value Supply Chain
Programme
Employee Resilience and Wellbeing
Programmes
People Help People Foundation
Building Social Value –
Supply Chain
Programme

Enables:
◦ Your social value aims and objectives to
be delivered on a wider reaching basis
through supply chain
◦ Enhanced relationships with your supply
chain partners. You are supporting them
and they are supporting you
◦ Robust action planning and monitoring
throughout the supply chain
Building Social Value –
Supply Chain Programme
◦ Measurement and evidence of your supply chain
social value delivery
◦ Statutory and regulatory requirements to be met
◦ Budgetary and resource challenges to be met. No
direct cost to you

Collaborative approach enables enhanced
community engagement of your organisation. You
are supporting all stakeholders in your community
www.peoplehelppeople.co.uk
[email protected]
T: 0113 217 2705
M: 07850163488
facebook.com/peoplehelppeeps
twitter - @PeopleHelpPeeps
Question Time
Leading global excellence in procurement and supply
Finally, The Usual Reminders
1. Join Our LinkedIn Group
2. Maintain your ‘MyCIPS’ Profile
http://www.cips.org
http://www.linkedin.com/groups
3.
Update
Your CPD
4.
Keep in Touch with your branch
Email –
[email protected]
[email protected]
Leading global excellence in procurement and supply
Thank you
I’m off home to watch the football!
Leading global excellence in procurement and supply