Consistency to global procurementSpread sustainability throughout the value chain
/ PROCUREMENT IS A MAJOR ASPECT OF OUR BUSINESS, AND WE WORK WITH SUPPLIERS ACROSS THE GLOBE.
BY DEMANDING SUSTAINABLE SUPPLIES FOR OURSELVES – AND MEETING INCREASING CUSTOMER DEMAND FOR SUSTAINABLE PRODUCTS – WE CAN HAVE A MAJOR INFLUENCE ON IMPROVING SUSTAINABILITY THROUGHOUT THE VALUE CHAIN.
In 2016, ERIKS hired a Global Procurement Director to help bring consistency to procurement practices both locally and globally. The ultimate sustainability aim of this effort is to achieve acknowledgement of our supplier code of conduct by 100% of our suppliers. As we spend over € 1 billion annually on global procurement, we can satisfy our customers and protect our brand reputation by procuring and supplying products manufactured by reputable organizations.
Spread sustainability throughout the value chain
PLAN FOR ACTION
Our sustainability and procurement teams are working together to finalize a Target Action Plan, which sets out our roadmap for achieving sustainable procurement in line with the 10 principles of the United Nations Global Compact. The first step was to issue a revised Supplier Code of Conduct in 2016, which will this year be included in our contract templates for large suppliers. At the same time, an online self-assessment tool will be developed, which will be used to identify suppliers we can help to improve their sustainability positioning. This will initially be used with large suppliers and suppliers of our own-brand products.
By 2018 we will be starting to introduce on-site audits for suppliers in high-risk areas, and online audits for all other suppliers, so that we can identify any problems they may have, and then work with them to make improvements. The next step will be to incorporate questions on sustainability into other surveys and audits, such as the site visits currently made to check quality.
The increasing demand for sustainable products will have its effect on the whole supply chain. Customers ask suppliers who in turn influence their suppliers and vendors of raw materials. We hope that through our influence on our own activities, addressing sustainable procurement issues will become common practice at every stage in the supply chain.
As the sustainability teams work to develop content and share knowledge, the procurement teams will ensure these elements are built in to all procurement processes – whether new or existing.
Methods of measuring and reviewing progress are still under development. With sustainability clearly anchored in our strategy, sustainable procurement is of vital importance for our business.
/COLLABORATING ON CONSISTENCY
In 2015, ERIKS was invited to take part in a project initiated by a leading Government-funded sustainability organization in the Netherlands.
Involving some of the largest shipbuilders and other maritime organizations based in the country the aim of the project was to increase efficiency in procurement by achieving consistency across all the businesses.
The plan was to bring together all the customers to create one standard and one evaluation method and to enable information sharing between all participants.
ONLINE SELF-ASSESSMENT TOOL
With ERIKS’ help in development and testing, the project team created an online self-assessment tool which is now being tested with key suppliers. A consistent approach to evaluating the results is also in development, together with training programs for reviewers within the participating businesses. The plan for 2017 is to launch the online tool to additional suppliers, and to take steps towards developing consistent on-site auditing.
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