Our Approach to a Socially Responsible and Sustainable

Supply ChainKaty Mills

Group Head of Procurement

Places for People

Our Journey so far…..

• Who we are?• What is Responsible Supply Chain

Management (RSCM) to us?• What is our Business Case to make RSCM

changes?• Our approach to supply chain management• Outcomes• Where are we headed now?

Places for People - Who we are?“We are working to provide aspirational homes and inspirational places. We do this by creating new communities and by transforming existing neighbourhoods into vibrant and popular areas for people to live and prosper.”

What is RSCM to us?

• A very wide ranging topic – UK wide corporate confusion and ignorance

• Socially orientated company• What good practice were we already doing?• CR Steering Group – multi functional• CR Index - Platinum• BITC framework – marketplace, workplace,

environment & community• Social, environmental and economical Issues

Reputation•Impact on our local communities or local supply chain (we work in over 230 local authority areas)

Legislation •Public procurement, environmental, health & safety

Business Requirements •Select more efficient product / reduce consumption

Innovation•Ethical and environmental innovations leading to new revenue streams

Competitive advantage•Being at the forefront of our sector by working collaboratively with our suppliers

Investment & Funding•More and more Funders are integrating CR in their decision process (Cooperative Bank)

The Business Case for Us

Our initial key priorities in the supply chain

• Equality and Diversity• Improving Customer Service• Mainstreaming• Contractor Health Checks

• Local Procurement• Sustainable communities, SMEs and apprenticeships

• Environmental issues• Environmental management• Carbon emissions (10% reduction)• May Day Pledge

• Prompt Payment• Paying all suppliers promptly >70% (81), mixed solutions

Approach to responsible supply chain management

• Enhanced Group Procurement Strategy• New Sustainable Procurement policy• Integrating it through the tendering process• Meet the buyer events• Tenders online• Key Suppliers all undertake a Sustainability Workshop• Formal Biannual reviews incorporating CSR criteria• Financial Viability checker• CHAS and Constructionline accreditation• My Tenders• Self-serve payment enquiries

Approach to responsible supply chain management

• Adopting electronic Procure to Pay system (15% online)• Targeted Recruitment & training objectives• Contractual CSR Key Performance Indicators e.g.

Community Involvement targets• Customer Involvement in procurement – accessability,

training, product days• Local Sourcing Kit• Localism – greater lotting• E-auctions – to drive transparent competition• Supplier first touch signposting – supplier portal,

standardised reponses to cold calls, groupwide register

Supplier Workshops

• Supplier Risk Mapping• 3 priority suppliers identified

– Fleet provider and Car Manufacturer– Painting Contractor and Paint supplier– Window Installer and Window Manufacturer

• Supplier’s key CR issues?• What was the supplier doing already?• What areas are there for improvement separately

and through working together?

Outcomes• >40 apprenticeships• Boiler Climate Care

programme• Increased recycled

plastic profile – 14000 windows

• Increased Community Involvement

• MPG Challenge – driver awareness

• Insulation programme• Eco friendly Van trials• Committed to Prompt

Payment Code

What we need to do now? Further integrate RSCM into day to day procurement activity

and supplier targets Establish RSCM benchmarking opportunities to improve

supplier’s CSR performance Continue to develop and set clear RSCM questions and

requirements in tender documentation Take opportunities to enhance data collection around RSCM

objectives with suppliers Ensure all requirements surpass the Social Value Act

obligationsTo be launched 2012/13 Better use of MSD UK / WeConnect Annual Executive Supplier Innovation Forum Supplier Code of Conduct

Questions

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