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Paul Worland, Director of Business Development at Emcor & Mark Turner, Consultant at ActionSustainability - Sustainable Supply Chains


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Paul Worland, Director of Business Development at Emcor & Mark Turner, Consultant at ActionSustainability - Sustainable Supply Chains

  1. 1. Sustainable Supply Chains Paul Worland –EMCOR Mark Turner-Action Sustainability
  2. 2. Our paper today • Sustainable Supply Chains and FM • Sustainable Procurement- BS8903 • Supply chain collaboration-BS11000 • The Sustainability School
  3. 3. Sustainable Supply Chains & FM • Who is the customer? • Who can impact consumption? • What is the role of FM? • How is the supply chain engaged? • Can FM make a difference?
  4. 4. Sustainable Development
  5. 5. 52% of CO2 emissions from buildings 45% of CO2 emissions from buildings supplychainschool.co.uk – building sustainability
  6. 6. FM Matters Energy The Facility Water Waste Raw Materials • The Facility is at the heart of consumption • Do you know what your facility manager buys • Do you know how sustainable your supply chain is
  7. 7. Sustainable Procurement Procuring the Future – June 2006 • “Sustainable Procurement is a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits to society and the economy, whilst minimising damage to the environment”. • Sustainable Procurement should consider the environmental, social and economic consequences of: • Design; - Non-renewable material use; - Manufacture and production methods; - Logistics; - Service delivery; - Use; operation; maintenance; - Reuse; recycling options; disposal; - ... and suppliers' capabilities to address these consequences throughout the supply chain.”
  8. 8. BS 8903 Principles & Framework for Procuring Sustainably – Guide • World first standard for sustainable procurement practice • Builds on current thinking • Drafted by Action Sustainability • Published September 2010
  9. 9. Objectives Examples of Key Sustainability Issues Environmental Issues Social Issues Economic Issues •Emissions to air (e.g. greenhouse gases, such as carbon dioxide, and other pollutants) •Releases to water (e.g. chemical pollution of water courses) •Releases to land (e.g. chemical fertilizers) •Use of raw materials and natural resources (e.g. sustainable forestry, biodiversity) •Use of energy (e.g. renewables) •Energy emitted (e.g. heat, radiation, vibration, noise) •Waste and by-products (e.g. recycling and waste prevention) •Encouraging a diverse base of suppliers (e.g. minority or under-represented suppliers) •Promoting fair employment practices (e.g. fair wages, avoidance of bonded labour, workforce equality and diversity) •Promoting workforce welfare (e.g. health and safety, trade union membership) •Enabling training opportunities and skills development (e.g. apprenticeships) •Community benefits (e.g. supporting community groups, volunteering) •Fair trade and ethical sourcing practices (e.g. fair pricing policies) •Job creation (e.g. green technologies, creating markets for recycled products) •Whole life costing •Achieving value for money •Supporting small and medium enterprises (SMEs) (e.g. facilitating opportunities for small businesses) •Reducing entry barriers (e.g. facilitating open competition) •Ensuring operating business remains a viable operation able to provide employment •Ensuring suppliers’ agreements are at fair and viable margins
  10. 10. BS 8903 Process Foundation Level 1 Embed Level 2 Practice Level 3 Enhance Level 4 Lead Level 5 People Sustainable procurement champion identified. Key procurement staff have received basic training in sustainable procurement principles. Sustainable procurement is included as part of a key employee induction programme. All procurement staff have received basic training in sustainable procurement principles. Key staff have received advanced training on sustainable procurement principles Targeted refresher training on latest sustainable procurement principles. Performance objectives and appraisals include sustainable procurement factors. Simple incentive programme in place Sustainable procurement included in competencies and selection criteria. Sustainable procurement is included as part of employee induction programme. Achievements are publicised and used to attract procurement professionals. Internal and external awards are received for achievements. Focus is on benefits achieved. Good practice shared with other organisations. Policy, Strategy & Communications Agree overarching sustainability objectives. Simple sustainable procurement policy in place endorsed by CEO. Communicate to staff and key suppliers. Review and enhance sustainable procurement policy, in particular consider supplier engagement. Ensure it is part of wider Sustainable Development strategy. Communicate to staff, suppliers and key stakeholders. Augment the sustainable procurement policy into a strategy covering risk, process integration marketing, supplier engagement, measurement and a review process. Strategy endorsed by CEO. Review and enhance the sustainable procurement strategy, in particular recognising the potential of new technologies. Try to link strategy to EMS and include in overall corporate strategy. Strategy is: reviewed regularly, externally scrutinised and directly linked to organisations EMS. The Sustainable Procurement strategy recognised by political leaders, is communicated widely. A detailed review is undertaken to determine future priorities and a new strategy is produced beyond this framework. Procurement Process Expenditure analysis undertaken and key sustainability impacts identified. Key contracts start to include general sustainability criteria. Contracts awarded based on value-for-money, not lowest price. Procurers adopt Quick Wins Detailed expenditure analysis undertaken, key suitability risks assessed and used for prioritisation. Sustainability is considered at an early stage in the procurement process of most contracts. Whole-life-cost analysis adopted. All contracts are assessed for general sustainability risks and management actions identified. Risks managed throughout all stages of procurement process. Targets to improve sustainability are agreed with key suppliers. Detailed sustainability risks assessed for high impact contracts/ Project/ contract sustainability governance is in place. A life-cycle approach to cost/ impact assessment is applied. Life-cycle analysis has been undertaken for key commodity areas. Sustainability Key Performance Indicators agreed with key suppliers. Progress is rewarded or penalised based on performance. Barriers to sustainable procurement have been removed. Best practice shared with other organisations. Engaging Suppliers Key supplier spend analysis undertaken and high sustainability impact suppliers identified. Key suppliers targeted for engagement and views on procurement policy sought. Detailed supplier spend analysis undertaken. General programme of supplier engagement initiated, with senior manager involvement. Targeted supplier engagement programme in place , promoting continual sustainability improvement. Two way communication between procurer and supplier exists with incentives. Supply chains for key spend areas have been mapped. Key suppliers targeted for intensive development. Sustainability audits and supply chain improvement programmes in place. Achievements are formally recorded. CEO involved in the supplier engagement programme. Suppliers recognised as essential to delivery of organisations’ sustainable procurement strategy. CEO engages with suppliers. Best practice shared with other/ peer organisations. Suppliers recognise they must continually improve their sustainability profile to keep the clients business. Measurements & Results Key sustainability impact of procurement activity have been identified. Detailed appraisal of the sustainability impacts of the procurement activity has been undertaken. Measures implemented to manage the identified high risk impact areas. Sustainability measures refined from general departmental measures to include individual procurers and are linked to development objectives. Measures are integrated into a balanced score card approach reflecting both input and output. Comparison is made with peer organisations. Benefit statements have been produced. Measures used to drive organisational sustainable development strategy direction. Progress formally benchmarked with peer organisations. Benefits from sustainable procurement are clearly evidenced. Independent audit reports available in public domain.
  11. 11. Supply Chain Collaboration • Bringing together two world class standards BS 11000 – BS 8903 • Collaboration is the only way we can meet the sustainability challenge • Open communication and shared objectives important • Changing behaviours • It is not just about cost reduction “FM can make a difference”
  12. 12. BS 11000 Prepare Partner Awareness Executive sponsor Business objectives Business case Identify focus Initial risk assessment Key individuals Working Relationship Governance Partnering charter Joint objectives Processes and plan Joint risk management Measurement Knowledge Identify drivers Benchmark Knowledge map Strategy Risk management Exit strategy Additional Value Creation Define value Functional improvement teams (FIT) Continuous improvement process Innovation groups Staff development Future options Plan Part Internal Assessment Self assessment Constraints Skills / processes Appoint a leader Partner profile Action plan Staying Together Key performance indicators Performance monitoring Health checks Improvement plans Dispute management Escalation Partner Selection Assess partners Strength analysis MAP assessment Evaluate Select partner Joint objectives Exit Strategy Set boundaries Monitor change Establish change Assess liabilities Manage knowledge Review future
  13. 13. Introduction to the School and what it can do for FM and Property FMP event 29th November 2014 supplychainschool.co.uk – building sustainability Supplychainschool.co.uk/FM Sustainable Supply Chains
  14. 14. supplychainschool.co.uk – building sustainability ....... On the positive side  We know that healthy high quality working environments help deliver a healthy happy workforce. Supplychainschool.co.uk/FM
  15. 15. The Supply Chain Sustainability School  a virtual learning environment that helps suppliers and sub-contractors develop their sustainability knowledge and competence  making us all able to operate more sustainable, more productive and more efficient built assets for our clients and an improved experience for their customers and stakeholders  and importantly to help suppliers benefit from the many new business opportunities emerging for businesses who understand this agenda supplychainschool.co.uk – building sustainability Supplychainschool.co.uk/FM
  16. 16. supplychainschool.co.uk – building sustainability Some key principles  Confidential to each supplier  Voluntary  Develop at a pace to suit the user  Develops the business by developing the knowledge of key people  Based on trust  Free at the point of use: lots of free resource Supplychainschool.co.uk/FM
  17. 17. What are our plans for FM?  Developing quality resources to support FM  Supplemented by existing resources  More partners coming on board – FM clients, FM contractors, key FM suppliers  Ready for launch in January 2015. supplychainschool.co.uk – building sustainability Supplychainschool.co.uk/FM
  18. 18. Online learning environment • Over 2,750 company members • Over 6,000 individual members supplychainschool.co.uk – building sustainability Supplychainschool.co.uk/FM
  19. 19. supplychainschool.co.uk – building sustainability 100’s of the best resources Supplychainschool.co.uk/FM
  20. 20. supplychainschool.co.uk – building sustainability Reward and Recognition  Able to use logos in bids, website and promotion  Listed on web site with level  Access to members my account dashboard  Gold members enter annual School award Supplychainschool.co.uk/FM
  21. 21. A smart sustainability assessment supplychainschool.co.uk – building sustainability Each supplier who becomes a member undertakes a sustainability assessment tailored to their area of supply Supplychainschool.co.uk/FM
  22. 22. Bespoke action plans for each supplier After assessment each supplier gets a prioritised sustainability action plan based upon their knowledge and level of sustainability risk in their category supplychainschool.co.uk – building sustainability Supplychainschool.co.uk/FM
  23. 23. Free access to over 50 workshops p.a. supplychainschool.co.uk – building sustainability Supplychainschool.co.uk/FM
  24. 24. supplychainschool.co.uk – building sustainability Supplier dashboards Each supplier who becomes a member gets their own sustainability dashboard to track progress and action plans Supplychainschool.co.uk/FM
  25. 25. supplychainschool.co.uk – building sustainability Benefits of partnership Use of learning management system to track staff progress on wide range of e-learning modules Industry wide recognition of leadership Hosting /attendance at supplier days and sustainability workshops Client and stakeholder recognition of engagement in agenda and development of supply chain Ability to steer direction of the School Supply chain performance dashboard – anonymous data 25 Supplychainschool.co.uk/FM
  26. 26. Partner dashboard Suppliers active in the School are increasing their sustainability skills quicker than the industry average supplychainschool.co.uk – building sustainability Measurable improvements in sustainability knowledge 26 Supplychainschool.co.uk/FM
  27. 27. Information by supplier category We see where weaknesses lie in your supply chain * Graph above shows hypothetical school outputs. May be subject to minor content changes as school resources are developed supplychainschool.co.uk – building sustainability Supplychainschool.co.uk/FM
  28. 28. Information by sustainability issue supplychainschool.co.uk – building sustainability Seeing what sustainability expertise is lacking in Partners’ supply chains * Graph above shows hypothetical school outputs. May be subject to minor content changes as school resources developed Supplychainschool.co.uk/FM
  29. 29. Thank you Register your interest in the School via: www.supplychainschool.co.uk/fm supplychainschool.Supplychacion.suckh –oobul.icldoi.nugk s/uFsMtainability Mark Turner mark@actionsustainability.com 07972 398 256
  30. 30. Where are we on the journey Collaboration behavioural change • 150 people through KAM training • 700 people through customer excellence programme • Customer feedback reviews • Staff feedback reviews • Personal Performance Plans to 85% of staff Sustainable Procurement • Application of BS 8903 to our supply chain • Embedding procedures in our business • Measuring our performance
  31. 31. Sustainability leaders in FM • First FM company to achieve BS8903 • Use sustainability criteria in our buying process • Educate our supply chain • Monitor supplier performance • Develop and demonstrate a whole life cost approach • Sustainability appraisals in key decisions • Meet Government buying standards • First FM company to achieve BS 11000
  32. 32. Thank You