Responsible Sourcing

Collaboration - Increasing the potential for responsible sourcing

Sustainability is to often a “side track”!

Change of strategic direction & mindset is needed!!

A strong company culture as foundation & compass

Clear leadership and consistent messages!

Integrate Sustainability in Business

• Strategic direction and goals are set• Serve as input to all functions• Integrate in business strategies• How can we contribute & generate business

value?

The result will be……

• A clear business strategy & actionplan• Sustainability is integrated – not a side track!• Management & Key Staff is engaged and take

responsibility

The sourcing team has to take full responsibility!

HIGHER REVENUE

STRONGER BRAND

LOWER COST LOWER RISK

Sustainable

Business

INNOVATE

LESS CERTAIN / LONG-TERM

MITIGATE

CERTAIN / SHORT TERM

Opportunities in 4 main categories

Sourcing strategies• Number of suppliers?• Global v/s Local/Regional sourcing• Long term development• Development projects with suppliers

New supplier?

• Existing supplier first!• Costs when changing supplier;

- own staff - administration- start-up costs- quality costs- “20% rule”

“Wild West”2500 suppliers2,0 billion euro1990

Reduced no of suppliersSupplier matrix9,5 billion euro2000

Material focus 40 mtrl areas1084 suppliers29,1 billion euro2012

Focus on less but bigger suppliers

Strategic collaboration between Range & Sourcing teams

Partnership

Supplier development

Development projects

Follow up and auditing

Level of buyersengagement

Set expectationsCommunicate the Code of Conduct and make it

part of the purchasing agreement

Long term development of suppliers

Energy savings at textile production

• IKEA supplier in Bangladesh• Reduced energy consumption by 29%• Save 1,1 mio euro annually• Reduced CO2 emissions by 15600 ton annually

Collaboration is core-you shall never walk alone…….

Collaborative experiencesBased on your “homework” we’ll share and learn in groups by sharing best practice;• Good examples of collaboration – which functions

are involved internally and at the supplier?• Good examples of measuring supplier performance

– which KPI’s are you using? You’ll now have 25 min for sharing Be ready to share one example on each question verbally with the other groups

“Cheat sheet - Key takeaways”• Sustainability is often a “side track”• A strong company culture as compass• Clear leadership and consistent messages• Set a strategic direction and integrate in all functions• The sourcing team has to take full responsibility • High potential to reduce cost, increase profitability, minimize risk and

strengthen the brand• Start of new a supplier is costly • Long term partnership with selected suppliers• Collaboration internally and with your suppliers is core