1. December 2, 2014
1
Saudi Transtec
10th December 2014
Dammam
Kingdom of Saudi Arabia
Protecting Your Company
by Maximizing Supply
Chain Transparency
Catherine.Beare@intertek.com
Andrew.swift@intertek.com
Nizar.dridi@intertek.com
3. December 2, 2014
3
The trade environment challenge:
Supply chain blind spots
The less you see,
the less you
know.
The less you
know, the
greater the
risk.
11. December 2, 2014
11
…discover production is actually occurring
in 9 locations…
…Harbin
…Tianjin
…Beijing
…Wuhan
…Chengdu
… Suzhou
12. December 2, 2014
12
This happens often…
40%… of Intertek Audit requests from global clients have
something wrong with the audit request entity… address,
contact at production facility, etc.
13. December 2, 2014
13
We need to understand the difference…
SUPPLIER / VENDOR
PRODUCTION FACILITY
This is where your risk lies
14. December 2, 2014
14
The dangerous reality:
Many companies do not know
the full extent of their supply
chain… up to
70%
In a recent survey
?
15. December 2, 2014
15
Supplier Management is getting Heavily Regulated
• Increasing disclosure of non-financial due-diligence areas
such as climate change (SEC)
• Disclosures on Human Trafficking & related labor issues
(California Supply Chain Act SB657) & possible Federal
Legislation
• Carbon data disclosure Act // UK Bribery Act
• Conflict Minerals Reporting
• USA: Section 1502 of SEC Requirements
• Australia due diligence guidelines
• European Commission proposal for EU
16. December 2, 2014
16
Sustainability Investors are on the RiseCompaniesReportingESGSRI/ESGrelatedFunds
2005 2006 20082007 2009 2010
300
600
900
1,200
1,500
700
1,600
2,500
3,400
4,300
+84%
2005 2006 20082007 2009 2010
+219%
•SCALE: UN PRI
signatories (783);
UNGC participants
(8,474); GRI
participants (1,000+);
CDP respondents
(2,456)
•HSBC, Barclays,
Goldman, UBS,
Merrill, Credit Suisse
all managing ESG-
related funds
•VALUE: DJSI $8
trillion; FTSE4Good;
S&P Carbon, HKSE
Sustainability Index
17. December 2, 2014
17
Exposure can have material consequences:
85 percent of companies with global supply chains had experienced at least one
supply chain disruption in the previous 12 months.
1. Sudden demand change (53 percent)
2. Margin erosion (42 percent), such as due to a cost increase, lost
revenue, or unanticipated taxes/regulatory changes.
3. Physical product flow disruption (37 percent)
4. Product quality failure (28 percent)
5. Regulatory non-compliance and/or worker-safety failure (20 percent),
6. Social responsibility failure (18 percent).
One study suggests that companies have experienced 30% lower shareholder
returns compared to their peers in the wake of a publicly-announced disruption.
18. December 2, 2014
18
Complexity of global supply chains and
increased regulation create challenges:
Complex supply
chain
• Facilities
• Vendors
• Licensees
• Wholesalers
Constantly changing
facility locations
and contact details
Traceability and
accountability
challenges
Supplier
information that is
time consuming and
difficult to verify
A Holistic
Solution is
needed…
19. December 2, 2014
19
4 Essential pillars for Effective Supply
Chain Management
1. Visibility
2. Flexibility
3. Collaboration
4. Control
20. December 2, 2014
20
Global Supplier Management
The 4 steps for better visibility & control :
Collection and cleansing of
supplier information
Business profile completion
• Additional Modules
Verification services
Risk-based analysis
1
2
3
4
21. December 2, 2014
21
GSM Case Study 1: Chemicals, Netherlands
The challenge:
• Need to capture water and carbon foot printing within
their top 250 suppliers.
• Essential for managing preferred supplier relationships
and reporting needs for Dow Jones Sustainability Index,
and maintaining innovation in their business
• Education Key, but also Score, analyze, benchmark in one
place
• Outsourcing Key
22. December 2, 2014
22
GSM Case Study 1: Chemicals, Netherlands
The Solution:
• Online website based system with 24/7 access
• Option: invite all suppliers onto the system & automate
communication to them, supported by in country Intertek
• Customized questionnaire to ask key information designed by
Intertek Environmental team
• Scoring based on business needs
• Reporting options to see results defined by their reporting
needs
• Risk Reporting: Strengths & Weaknesses for supplier guidance
24. December 2, 2014
24
GSM Case Study 2: Automotive, Germany
The challenge:
• Wanted a risk screening platform for new suppliers and
management of current suppliers with regards to
sustainability needs
• Important to have multiple modules depending on supplier
type for relevance
• Important to be used in compliance management decisions
• Suitable to share with other clients
25. December 2, 2014
25
GSM Case Study 2: Automotive, Germany
The Solution:
• Designed multiple modules within the sustainability area to
meet different supplier types
• Scoring made relevant and similar within each module to
ensure comparability
• Results designed to make clear where the supplier has
compliance issues to ensure clear next steps
• Incentivization steps explained to all suppliers during on-
boarding to encourage completion
• Option: show improvement during the year & adjust scoring
27. December 2, 2014
27
1. The less you see, the less you know;
The less you know, the greater the risk
2. Do you know who your suppliers really are?
3. Effective Supply Chain Management reduces unforeseen risks
4. Information Management and Enforcement is essential
Conclusions
29. www.intertek.com29
Who is Intertek?
Intertek provides quality and safety services that not only
help customers provide quality products and services but
also adds value to their business.
We deliver these services through our global network and as
a result have developed an unrivalled reputation for fast
execution of work.
30. www.intertek.com30
Our Mission
Our mission is to add value for our customers by
helping them achieve their desired level of quality and
safety for their products, assets and processes; to
protect their brands and enable their success in the
global marketplace.
31. www.intertek.com31
Our Heritage
Caleb Brett founds
a marine surveying
business
1885
Thomas Edison
establishes what
is later renamed as
the Electrical
Testing
Laboratories (ETL)
1896
Virginius Daniel
Moody establishes
Moody Engineering
for construction
and electrical
engineering
projects
1911
Intertek and Moody
International join
forces
2011
Intertek Today:
Valued Quality.
Delivered.
Today
Caleb Brett founds
a marine surveying
business
1885
Thomas Edison
establishes what
is later renamed as
the Electrical
Testing
Laboratories (ETL)
1896
Virginius Daniel
Moody establishes
Moody Engineering
for construction
and electrical
engineering
projects
1911
Intertek and Moody
International join
forces
2011
Intertek Today:
Valued Quality.
Delivered.
Today
32. www.intertek.com32
Our Organisation
Our Global Business Lines
Agricultural Services
Cargo & Analytical Assessment
Government and Trade Services
Minerals
Business Assurance
Exploration & Production
Industry Services
Life Sciences (Food; Chemicals & Pharmaceuticals)
Tradegood
Building Products
Electrical/Wireless
Toys & Hardlines
Product Intelligence
Softlines
Transportation Technologies
Our Services
Testing
Inspection
Certification
Auditing
Outsourcing
Advisory
Training
Quality Assurance
33. www.intertek.com33
An Extensive Global Network
• FTSE 100 company in the
Support Services sector
• Market capitalisation at £4.7
billion
• Revenue generation of over
£2bn in 2013
100
More than
countries
1,000
More than
laboratories
and offices
36,000
people
34. www.intertek.com34
Our Customer Focus
Why are we important to our customers?
Because we facilitate their success through…
Speed to Market
To cut lead times and costs
without cutting corners
on safety while gaining
competitive advantages
Reducing Risk
To reduce and avoid financial,
operational and environmental risks
to their activities
Brand Protection
Protecting our clients’
corporate reputation and brand
value
Focused Resources
Enabling customers to free up
valuable resources to allocate to
core services, improving
productivity and efficiency
