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1 Sustainable Purchasing:The next frontier of value creation Intercity meeting Rotary Clubs Waterland June 15, 2010, Volendam Prof.dr.ir. Bart Vos NEVI Chair Purchasing Management, Tilburg University Expert Partner Coppa Consultancy
McDonald’s. I’mlovingit…… 2
3 Agenda Context: Supply chain dynamics Sustainable purchasing (SP): What & why? How? Embedding sustainable purchasing in the internal organisation Concluding remarks
4 Context: Supply chain dynamics Increasing focus on chain optimisation  	 relay race as metaphor Role purchasing? Selection, managing and development of suppliers	More important as a result of outsourcing tendency! Ever more performance pressure: faster, better, cheaper And more “challenges” like globalisation, technological progress (ICT!), more demanding customers & growing impact “public opinion”
5 Corporate Social Responsibility What? ,[object Object]
Multiple ‘Stakeholders’
“Here vs there” & “later vs now”Why? ,[object Object]
Ought to (moral/social/ecological principles)
Pays off (e.g. via improved image, differentiate from competitors, positive HRM effect: ‘employer of choice’),[object Object]
7 Sustainability issues in chains  Environmental issues ,[object Object]
Waste treatment
Efficient energy consumption
Efficient materials usage
BiodiversityOther “ethical” issues ,[object Object]
Product safety & quality
Animal wellbeingSocial issues Child labour Forced labour Non discrimination Right to have trade unions Working hours & overtime Salaries Safe & healthy labour conditions Container topic, trade-offs, strategic priorities
15 juni 2010
9 Sustainability at Dutch Railways (NS) Corporate Social Responsibility (CSR) clearly on strategic agenda NS Three CSR priorities: Energy savings Noise reduction Waste treatment Purchasing contributes in many ways, for example via: Cleaner fuel Reducing weight of trains Green building Source: Deal!, January – February 2009 People, planet, profit criteria used in all NS purchasing decisions
Geluid 15 juni 2010
11 Drivers sustainable purchasing Results American research (Carter & Jennings, 2004): True leadership  top management ,[object Object]
Indirect effect: strengthen more ‘human based’ cultureOwn initiatives individual employees Pressure from customers (e.g. Dutch government!!) ,[object Object],[object Object]

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Sustainable Purchasing: The next frontier of value creation

  • 1. 1 Sustainable Purchasing:The next frontier of value creation Intercity meeting Rotary Clubs Waterland June 15, 2010, Volendam Prof.dr.ir. Bart Vos NEVI Chair Purchasing Management, Tilburg University Expert Partner Coppa Consultancy
  • 3. 3 Agenda Context: Supply chain dynamics Sustainable purchasing (SP): What & why? How? Embedding sustainable purchasing in the internal organisation Concluding remarks
  • 4. 4 Context: Supply chain dynamics Increasing focus on chain optimisation  relay race as metaphor Role purchasing? Selection, managing and development of suppliers More important as a result of outsourcing tendency! Ever more performance pressure: faster, better, cheaper And more “challenges” like globalisation, technological progress (ICT!), more demanding customers & growing impact “public opinion”
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  • 16. Animal wellbeingSocial issues Child labour Forced labour Non discrimination Right to have trade unions Working hours & overtime Salaries Safe & healthy labour conditions Container topic, trade-offs, strategic priorities
  • 18. 9 Sustainability at Dutch Railways (NS) Corporate Social Responsibility (CSR) clearly on strategic agenda NS Three CSR priorities: Energy savings Noise reduction Waste treatment Purchasing contributes in many ways, for example via: Cleaner fuel Reducing weight of trains Green building Source: Deal!, January – February 2009 People, planet, profit criteria used in all NS purchasing decisions
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  • 23. 14 Why sustainable purchasing? Not only because should or ought to, but also because it can be very rewarding: Risk management (more “defensive”) Sales increases and/or cost reduction (more “offensive/pro-active”)
  • 25. 16 How to get it done?Embedding SP internally (1) Stimulate Clear basic values/principles organisation (vision/mission) Human resource policies (e.g. include in “profile” for recruitment & selection, training, reward system) Facilitate Report achieved results, e.g. via Sustainability Reports Ongoing dialogue with stakeholders (internal & external), e.g. about social & environmental criteria in specifications
  • 26. CO2 uitstoot in TNT’s keten Source: TNT annual report 2009
  • 27. 18 How to get it done?Embedding SP internally (2) Control/monitor Codes of conduct: internally and for suppliers (e.g. Heineken, Unilever, Philips, AkzoNobel) Risk analysis in the supply chain/network Audits (e.g. SOCAM for C&A) Ethical office (sort of “faith person”) Clear and consistent sanction policy
  • 28. 19 Concluding remarks True leadershiptop management as critical success factor Purchasing challenge? Align with and contribute to corporate CSR/sustainability initiatives Sustainable purchasing essentials: rewarding, cooperation, job enrichment Hype?!? Could be, yet very unlikely: Increasing public opinion “pressure” Ambitious SP targets Dutch government Many leading companies active in sustainability domain
  • 29. VBDO Responsible Supply Chain Management Award 2009 Philips 90 Akzo Nobel 87 Unilever 79 Reed Elsevier 75 DSM 73 Ahold 60 ASML 60
  • 30. 21 Motto: De Vonk Het vuur moet blijven branden En de hoop mag niet vergaan En de geest moet kunnen waaien Want de vonk, de vonk kan overslaan! Van Nieuwegein tot Oldebroek …… En als ze morgen bellen, Zijn we er overmorgen weer De Dijk, De Blauwe Schuit (1994)