WORKPLACE
FUTURES
THE CRYSTAL
February 12th, 2012
With thanks to our sponsors
Sustainable Supply Chain
Collaboration
Paul Worland – February 2013
My paper today
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Sustainable Supply Chains and FM
Sustainable Procurement- BS8903
Supply chain collaboration-BS11000
Where are we on the journey?
Sustainable Supply Chains & FM
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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?
Sustainable Development
FM Matters
Energy
•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
Raw
Materials
The
Facility
Waste
Water
Sustainable Procurement
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“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”.
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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;
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Procuring the Future –
June 2006
- ... and suppliers' capabilities to address these
consequences throughout the supply chain.”
BS8903
Principles & Framework for Procuring
Sustainably – Guide
• World first standard for sustainable procurement
practice
• Builds on current thinking
• Drafted by Action Sustainability
• Published September 2010
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)
•Encouraging a diverse base of
suppliers (e.g. minority or underrepresented suppliers)
•Job creation (e.g. green
technologies, creating markets for
recycled products)
•Releases to water (e.g. chemical
pollution of water courses)
•Promoting fair employment
practices (e.g. fair wages, avoidance
of bonded labour, workforce equality
and diversity)
•Whole life costing
•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)
•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)
•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
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-lifecost 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.
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”
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
Our Sustainable Procurement
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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
• Achieve BS8903 Competent status in 2013
• Meet Government buying standards
Where are we on the journey
Collaboration
• 120 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
In Summary
• It is all about working and collaborating
together
• Strategic partnerships
• Using best technology
• Using the best supply chain
• Meeting our customer challenge of
Sustainable business practise
Thank You