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Morris Geissler and Calin Moldovean, Intertek
9th Annual Chemical/Petrochemical Strategic Sourcing Summit
Amsterdam, 5 March 2014
Your Innovation. Your Success
Sustainable. Your Market Connect
Mitigate Risk. Our Mission
www.intertek.com2
R&D Performance Performance
Issues/Returns/
Recalls
Certification -Compliance
(Tech, Env, Social)
Production Distribution
End user
Supply/Value Chain
Intertek – Strategic Support for the Supply/Value Chain
Training
Advisory
Certification
Auditing
Inspection
Outsourcing
Quality
Assurance
Testing
CSR
www.intertek.com3
Intertek - Our extensive global network
• FTSE 100 company in the Support
Services sector
• Market capitalisation over £5 billion
• Revenue generation of over
£2.0 billion in 2012
100
More than
countries
1,000
More than
laboratories
and offices
35,000
people
over
www.intertek.com4
Challenges
Innovation in compliance with regulations
Expertise, competencies and capabilities
Fixed cost of technical and regulatory facilities
Material- and Product-Stewardship
Faster and effective market introduction
Innovation
www.intertek.com5
Challenges
Respond to global compliance demands
Risk Validation of Products and Processes
Sustainability
Material and product Stewardship
Volunteer sustainability in your value proposition
Evaluate Health and safety solutions
www.intertek.com6
Challenges
Make decisions on data not on thought bubbles
Risk Mitigation
IP and confidentiality protected
Transfer intangible fixed cost into demand
Do a reliability check
Benchmark risk against ROI
www.intertek.com7
Partnership development through procurement
Buyer Supplier
Buyer / Account manager
BuyerSupplier
Internal organization
Relationship manager
From “Butterfly”
Leveraging
To “Diamond”
Collaboration
www.intertek.com8
• Strategic Programs
• Value Creation by complementarity or added value
• Development of joint initiatives
• Team: Customers & Supplier
• Supplier and data management platforms
• Define Improvement Projects to meet strategic
objectives
• Plan Improvement Actions
• KPI Review meetings supported by supplier data
• Execution of actions / Projects
• Selecting the right expertise and tools/platforms
• Global footprint in execution
Partnership Development Model
www.intertek.com9
How can a reliable partner help?
It allows you to innovate
Helps you to focus
Mitigates your risks
www.intertek.com10
They asked for Support from a Third Party…
10
www.intertek.com11
Innovation Case study: Regulatory Compliance Support
gComply: web-based reference of 70,000+ regulations across 175 countries.
News and Issue Management: Daily early warning for scientific
and regulatory events. Track substances, flag events and push info to others.
gComply Plus: Rule-based Red Light/Green Light compliance analysis and
reporting system; Can integrate with a company’s ERP and PLM systems for
formulation checking.
Document Management: Manages all compliance documents
including questionnaires, certificates, MSDSs, lab results etc. and enables gap
analysis to identify missing or out-of-date documents. Provides a clear view of your
supply chain.
www.intertek.com12
Innovation Case study: „usage of new antimicrobial
for food packaging“ pilot scale study
Project included:
- Pilot plant processing
- Mechanical
characterization
- Consultancy
- Food contact compliance
study
‘Safety first’ also for lab scale experiments
• Interpretation of available safety data
• Discussions with client
• Documentation of precaution
measures
• Evaluations of experiments
• Share experiences
Lab scale compounding
www.intertek.com13 13
Car Component
Raw
Material
Requirement
13
eric.ris@intertek.com
Case Study - Raw Material Selection Automotive Application
Market analyses
of local
Materials
Prototyping using
standard specimen
or mass production
injection-mold
Sampling
&
Testing
Certification
&
Recommendation
Selection &
processability Manufacturing
Outsourced
1 approved
material
1,000 compounds
www.intertek.com14
Intertek delivers
structure and
transparency
Intertek delivers
structure and
transparency
Risk Mitigation – a Complete Solution
The next generation in Supply Chain
Risk Management Services
• Supply Chain Data Analysis and
Monitoring
• Supply Chain Traceability
• Predictive Risk Modelling
• Business Continuity Management
• Quality, Environmental and Health &
Safety Risk Management
• Anti- Counterfeiting Monitoring
• Customised Assessments
www.intertek.com15
Supplier Risk Management Platform – Best Practice
Risk Identification
Verification Services
Supplier Onboarding
Data Cleansing
Program
Management
Capacity Building
• Business Qualification
• Systems Qualification
• Training
An Integrated Partnership Approach with an External Service Provider
www.intertek.com16
Case Study – Industry Partnership TfS
Together for Sustainability (TfS) – “An audit for one is an audit for all”
• Founded in 2011 by six procurement officers in the German Chemical Industry
• Purpose to develop and implement a global audit program to assess and improve
sustainability practices within the supply chains of the chemical industry
• Assessment results and sustainability monitoring services available on a
common sustainability monitoring platform.
• Supplier scorecard automatically visible to all TfS member companies
• Intertek is one of the four approved global auditing & monitoring firms
www.intertek.com17
Business Continuity
Ensure organizations can quickly and effectively deal with a
significant business disruption
Minimize revenue loss, enabling organizations to maintain
market share and continued investor confidence
Establish appropriate management practices and good
corporate governance
Proactively handle potential risks and protect the
organizations brand and reputation
Promote due diligence and overall awareness of potential
risks
Document an overall view of the organizations risk appetite
thus becoming more focused and efficient
Making the organization more resilient and capable of
serving clients during time of crisis
By partnering
with Intertek you
can leverage the
knowledge and
expertise of one
of the most
experienced
certification
bodies in the
industry
By partnering
with Intertek you
can leverage the
knowledge and
expertise of one
of the most
experienced
certification
bodies in the
industry
Leverage our
extensive
expertise in
ISO 22301 and
related
standards
Leverage our
extensive
expertise in
ISO 22301 and
related
standards
Business Benefits
www.intertek.com18
Workplace Conditions
Assessment 5 modules:
1-Labor
2-Hours & Wages
3-Health and Safety
4-Management Systems
5-Environment
Workplace Conditions
Assessment 5 modules:
1-Labor
2-Hours & Wages
3-Health and Safety
4-Management Systems
5-Environment
Business Benefits
• Measuring and improving working conditions
• Better decision making supported by real time
data with data mining across industry sectors
and country benchmark
• Flexible program to accommodate different
company requirements such as corporate
governance and business integrity
• Community sharing program to reduce audit
fatigue
• Greater transparency and trust with WCA
being used or accepted by more than 80
global buyers
Workplace Conditions Assessment
www.intertek.com19
Think Green Initiative
Business Benefits
• Provide greater visibility through environmental
commitment and performance
• Reducing environmental footprint and costs.
• Improving material efficiency through better
resource management including recycling,
reuse of materials, and waste reduction.
• Acquiring sustainable business practices.
Think Green
Initiative
includes:
2 basic assessment
modules
-Environmental Legal
compliance
-Environmental
Management System
6 individual assessment
modules
-Water
-Air Emissions
-Energy
-Sustainable Production
-Noise Emissions
-Hazardous materials,
equipment and waste
Think Green
Initiative
includes:
2 basic assessment
modules
-Environmental Legal
compliance
-Environmental
Management System
6 individual assessment
modules
-Water
-Air Emissions
-Energy
-Sustainable Production
-Noise Emissions
-Hazardous materials,
equipment and waste
www.intertek.com20
Performance Benchmark
•By global
•By country
•By industry
Water & wastewater
Energy
Cost savings
Air pollutants
Solid waste
Hazardous chemicals
Sustainability Data collection
•High Performance
•Medium Performance
•Low Performance
•Very Low Performance
Performance Rating
Provide knowledge and insights into environmental performance and
sustainable practices
Case study: Think Green Initiative
www.intertek.com21
Good
Practice
Factory 1 Factory 2 Factory 3 Factory 4
Energy
Efficiency
/Renewable
Energy =
Cost Savings
RMB2,521,440
$365,426
RMB120,000
$17,931
RMB 943,426
$140,496
Rp.1,872,000,000
$187,200
Recycle heat from
air pressed
generator and
reuse in dyeing
process
Solar heating
system for
dormitory
showers
Ro system for
Nickel recycling
Energy saving
bulbs
Good Practice Factory 1 Factory 2
Resources &
Material
Efficiency
Recycling of wastewater Raw material usage
efficiency improvement
Achieved 0.7%
recycling rate
Achieved 8%
solid waste reduction rate
Cost Savings through Good Practices
www.intertek.com22
Managing and
reducing
hazardous
chemicals
throughout your
supply chain :
Comprehensive
chemical management
program
Identify the source of
hazardous chemicals
Educate & train
employees
Implement a plan for
reduction
Demonstrate effective
results
Managing and
reducing
hazardous
chemicals
throughout your
supply chain :
Comprehensive
chemical management
program
Identify the source of
hazardous chemicals
Educate & train
employees
Implement a plan for
reduction
Demonstrate effective
results
Environmental Chemical Management
Business Benefits
• Provide greater visibility through environmental
commitment and performance
• Leveraging insights for green production and
sustainable purchasing.
• Achieving good corporate governance and
preferred supplier status.
• Demonstrating commitment and robust ‘green’
credentials to stakeholders
www.intertek.com23
Customised Outsourced Assessment Services
Can you see
through?
Can you see
through?
Business Benefits
• Create better suppliers based on a continuous
improvement approach
• Increase facility compliance through our
qualification programs
• Provide 2nd party audit for client specific
programs, 3rd party certifications, as well as
training and capacity building options for suppliers
• Accredited to all major international auditing
standards
www.intertek.com24
Supply Chain Control – Managing Data & Risk
Who exactly are my suppliers?
How many direct vs. in-direct?
My level of traceability/ trust?
Pre-qualified for tender?
How can I find more buyers?
How can I register as a supplier?
Where can I establish a trusted
profile?
SuppliersBuyers
Where can I find the answers?
www.intertek.com25
Find Your Perfect Match - - TradeGood
Genuine buyers
Sourcing needs
Compliance needs
Risk and Due diligence needs
Genuine and qualified suppliers
Business information
Capacity and capabilities
Compliance performance
www.intertek.com26
Intertek
Supply Chain
Support
Global & Responsive
New-market presence;
Fast services, locally;
100 countries
Knowledge
Focused in each
supply chain area &
industry
Assurance
Greater visibility &
control; Integrating
multiple services
End-to-end presence
Support across the entire
chain; Innovative quality
solutions
Independent view
On risk; Different angle to
developer
From Quality Control to Quality Confidence
www.intertek.com27
Intertek Value Proposition
Meeting
global
regulatory
compliance
Meeting
environmental
health and
safety
standards
Meeting the
sustainability
agenda
Providing
solutions to
manage your
supply chain
Support in
innovation
enabling
swift market
response
On demand
supply of
technical and
regulatory
resources
www.intertek.com28
Valued Quality. Delivered.

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Together for sustainability -

  • 1. Morris Geissler and Calin Moldovean, Intertek 9th Annual Chemical/Petrochemical Strategic Sourcing Summit Amsterdam, 5 March 2014 Your Innovation. Your Success Sustainable. Your Market Connect Mitigate Risk. Our Mission
  • 2. www.intertek.com2 R&D Performance Performance Issues/Returns/ Recalls Certification -Compliance (Tech, Env, Social) Production Distribution End user Supply/Value Chain Intertek – Strategic Support for the Supply/Value Chain Training Advisory Certification Auditing Inspection Outsourcing Quality Assurance Testing CSR
  • 3. www.intertek.com3 Intertek - Our extensive global network • FTSE 100 company in the Support Services sector • Market capitalisation over £5 billion • Revenue generation of over £2.0 billion in 2012 100 More than countries 1,000 More than laboratories and offices 35,000 people over
  • 4. www.intertek.com4 Challenges Innovation in compliance with regulations Expertise, competencies and capabilities Fixed cost of technical and regulatory facilities Material- and Product-Stewardship Faster and effective market introduction Innovation
  • 5. www.intertek.com5 Challenges Respond to global compliance demands Risk Validation of Products and Processes Sustainability Material and product Stewardship Volunteer sustainability in your value proposition Evaluate Health and safety solutions
  • 6. www.intertek.com6 Challenges Make decisions on data not on thought bubbles Risk Mitigation IP and confidentiality protected Transfer intangible fixed cost into demand Do a reliability check Benchmark risk against ROI
  • 7. www.intertek.com7 Partnership development through procurement Buyer Supplier Buyer / Account manager BuyerSupplier Internal organization Relationship manager From “Butterfly” Leveraging To “Diamond” Collaboration
  • 8. www.intertek.com8 • Strategic Programs • Value Creation by complementarity or added value • Development of joint initiatives • Team: Customers & Supplier • Supplier and data management platforms • Define Improvement Projects to meet strategic objectives • Plan Improvement Actions • KPI Review meetings supported by supplier data • Execution of actions / Projects • Selecting the right expertise and tools/platforms • Global footprint in execution Partnership Development Model
  • 9. www.intertek.com9 How can a reliable partner help? It allows you to innovate Helps you to focus Mitigates your risks
  • 10. www.intertek.com10 They asked for Support from a Third Party… 10
  • 11. www.intertek.com11 Innovation Case study: Regulatory Compliance Support gComply: web-based reference of 70,000+ regulations across 175 countries. News and Issue Management: Daily early warning for scientific and regulatory events. Track substances, flag events and push info to others. gComply Plus: Rule-based Red Light/Green Light compliance analysis and reporting system; Can integrate with a company’s ERP and PLM systems for formulation checking. Document Management: Manages all compliance documents including questionnaires, certificates, MSDSs, lab results etc. and enables gap analysis to identify missing or out-of-date documents. Provides a clear view of your supply chain.
  • 12. www.intertek.com12 Innovation Case study: „usage of new antimicrobial for food packaging“ pilot scale study Project included: - Pilot plant processing - Mechanical characterization - Consultancy - Food contact compliance study ‘Safety first’ also for lab scale experiments • Interpretation of available safety data • Discussions with client • Documentation of precaution measures • Evaluations of experiments • Share experiences Lab scale compounding
  • 13. www.intertek.com13 13 Car Component Raw Material Requirement 13 eric.ris@intertek.com Case Study - Raw Material Selection Automotive Application Market analyses of local Materials Prototyping using standard specimen or mass production injection-mold Sampling & Testing Certification & Recommendation Selection & processability Manufacturing Outsourced 1 approved material 1,000 compounds
  • 14. www.intertek.com14 Intertek delivers structure and transparency Intertek delivers structure and transparency Risk Mitigation – a Complete Solution The next generation in Supply Chain Risk Management Services • Supply Chain Data Analysis and Monitoring • Supply Chain Traceability • Predictive Risk Modelling • Business Continuity Management • Quality, Environmental and Health & Safety Risk Management • Anti- Counterfeiting Monitoring • Customised Assessments
  • 15. www.intertek.com15 Supplier Risk Management Platform – Best Practice Risk Identification Verification Services Supplier Onboarding Data Cleansing Program Management Capacity Building • Business Qualification • Systems Qualification • Training An Integrated Partnership Approach with an External Service Provider
  • 16. www.intertek.com16 Case Study – Industry Partnership TfS Together for Sustainability (TfS) – “An audit for one is an audit for all” • Founded in 2011 by six procurement officers in the German Chemical Industry • Purpose to develop and implement a global audit program to assess and improve sustainability practices within the supply chains of the chemical industry • Assessment results and sustainability monitoring services available on a common sustainability monitoring platform. • Supplier scorecard automatically visible to all TfS member companies • Intertek is one of the four approved global auditing & monitoring firms
  • 17. www.intertek.com17 Business Continuity Ensure organizations can quickly and effectively deal with a significant business disruption Minimize revenue loss, enabling organizations to maintain market share and continued investor confidence Establish appropriate management practices and good corporate governance Proactively handle potential risks and protect the organizations brand and reputation Promote due diligence and overall awareness of potential risks Document an overall view of the organizations risk appetite thus becoming more focused and efficient Making the organization more resilient and capable of serving clients during time of crisis By partnering with Intertek you can leverage the knowledge and expertise of one of the most experienced certification bodies in the industry By partnering with Intertek you can leverage the knowledge and expertise of one of the most experienced certification bodies in the industry Leverage our extensive expertise in ISO 22301 and related standards Leverage our extensive expertise in ISO 22301 and related standards Business Benefits
  • 18. www.intertek.com18 Workplace Conditions Assessment 5 modules: 1-Labor 2-Hours & Wages 3-Health and Safety 4-Management Systems 5-Environment Workplace Conditions Assessment 5 modules: 1-Labor 2-Hours & Wages 3-Health and Safety 4-Management Systems 5-Environment Business Benefits • Measuring and improving working conditions • Better decision making supported by real time data with data mining across industry sectors and country benchmark • Flexible program to accommodate different company requirements such as corporate governance and business integrity • Community sharing program to reduce audit fatigue • Greater transparency and trust with WCA being used or accepted by more than 80 global buyers Workplace Conditions Assessment
  • 19. www.intertek.com19 Think Green Initiative Business Benefits • Provide greater visibility through environmental commitment and performance • Reducing environmental footprint and costs. • Improving material efficiency through better resource management including recycling, reuse of materials, and waste reduction. • Acquiring sustainable business practices. Think Green Initiative includes: 2 basic assessment modules -Environmental Legal compliance -Environmental Management System 6 individual assessment modules -Water -Air Emissions -Energy -Sustainable Production -Noise Emissions -Hazardous materials, equipment and waste Think Green Initiative includes: 2 basic assessment modules -Environmental Legal compliance -Environmental Management System 6 individual assessment modules -Water -Air Emissions -Energy -Sustainable Production -Noise Emissions -Hazardous materials, equipment and waste
  • 20. www.intertek.com20 Performance Benchmark •By global •By country •By industry Water & wastewater Energy Cost savings Air pollutants Solid waste Hazardous chemicals Sustainability Data collection •High Performance •Medium Performance •Low Performance •Very Low Performance Performance Rating Provide knowledge and insights into environmental performance and sustainable practices Case study: Think Green Initiative
  • 21. www.intertek.com21 Good Practice Factory 1 Factory 2 Factory 3 Factory 4 Energy Efficiency /Renewable Energy = Cost Savings RMB2,521,440 $365,426 RMB120,000 $17,931 RMB 943,426 $140,496 Rp.1,872,000,000 $187,200 Recycle heat from air pressed generator and reuse in dyeing process Solar heating system for dormitory showers Ro system for Nickel recycling Energy saving bulbs Good Practice Factory 1 Factory 2 Resources & Material Efficiency Recycling of wastewater Raw material usage efficiency improvement Achieved 0.7% recycling rate Achieved 8% solid waste reduction rate Cost Savings through Good Practices
  • 22. www.intertek.com22 Managing and reducing hazardous chemicals throughout your supply chain : Comprehensive chemical management program Identify the source of hazardous chemicals Educate & train employees Implement a plan for reduction Demonstrate effective results Managing and reducing hazardous chemicals throughout your supply chain : Comprehensive chemical management program Identify the source of hazardous chemicals Educate & train employees Implement a plan for reduction Demonstrate effective results Environmental Chemical Management Business Benefits • Provide greater visibility through environmental commitment and performance • Leveraging insights for green production and sustainable purchasing. • Achieving good corporate governance and preferred supplier status. • Demonstrating commitment and robust ‘green’ credentials to stakeholders
  • 23. www.intertek.com23 Customised Outsourced Assessment Services Can you see through? Can you see through? Business Benefits • Create better suppliers based on a continuous improvement approach • Increase facility compliance through our qualification programs • Provide 2nd party audit for client specific programs, 3rd party certifications, as well as training and capacity building options for suppliers • Accredited to all major international auditing standards
  • 24. www.intertek.com24 Supply Chain Control – Managing Data & Risk Who exactly are my suppliers? How many direct vs. in-direct? My level of traceability/ trust? Pre-qualified for tender? How can I find more buyers? How can I register as a supplier? Where can I establish a trusted profile? SuppliersBuyers Where can I find the answers?
  • 25. www.intertek.com25 Find Your Perfect Match - - TradeGood Genuine buyers Sourcing needs Compliance needs Risk and Due diligence needs Genuine and qualified suppliers Business information Capacity and capabilities Compliance performance
  • 26. www.intertek.com26 Intertek Supply Chain Support Global & Responsive New-market presence; Fast services, locally; 100 countries Knowledge Focused in each supply chain area & industry Assurance Greater visibility & control; Integrating multiple services End-to-end presence Support across the entire chain; Innovative quality solutions Independent view On risk; Different angle to developer From Quality Control to Quality Confidence
  • 27. www.intertek.com27 Intertek Value Proposition Meeting global regulatory compliance Meeting environmental health and safety standards Meeting the sustainability agenda Providing solutions to manage your supply chain Support in innovation enabling swift market response On demand supply of technical and regulatory resources