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Wednesday, 05 September 2007 |
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Chris Hodgson, Envirowise retail specialist, says retailers and suppliers need to work in partnership to achieve supply chain efficiency
As corporate responsibility continues to rise up the business agenda, many retailers are unveiling wide-ranging strategies to improve their environmental performance – which increasingly involves working with their supply chains.
In today's competitive climate, Corporate Social Responsibility goes far beyond donating money to a good cause at the end of the year. It is fast becoming central to business strategy and the basis of many successful marketing campaigns.
Many retailers have already begun to tap into this trend, with some setting ambitious targets for improvements within key areas such as energy, raw material and packaging use.
But once an initial pledge has been made, how can retailers work with their suppliers to improve resource efficiency?
Envirowise recommends that retailers consider the following key stages:
• Begin by prioritising your primary suppliers with the environment in mind. This essentially means considering which companies have the greatest environmental impact, where the best opportunities to improve performance lie and how frequently they deal with a particular supplier.
• Once a target list has been prepared, approach senior management and the procurement team to get organisation buy-in. Remember to communicate that 'doing the right thing' is good for business, as well as the environment. Consider developing procurement guidance plans, running workshops and delivering internal training on the importance of resource efficiency.
• Get suppliers on board. Consider offering in-house training courses or practical workshops to give participants an opportunity to develop their knowledge around improving environmental performance.
• Agree clear objectives for environmental improvements with suppliers. This could involve looking at green procurement initiatives and developing contracts that build in the need for sustainable goods and practices.
Through its work with the sector, Envirowise has found that a partnership approach between the retailer and its suppliers is fundamental to success. In fact, those that invest in good communication throughout the supply chain often experience efficiencies that create better, leaner and more competitive supply chains – results that can have the added benefit of securing significant cost savings for both the company and their suppliers.
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