Sustain Consulting

Supply chain reviews...boots on the ground

The biggest risk factors are, more often than not, found the supply chain...

		We can have boots on the ground across the Asia Pacific, Middle East and North America within 24 hours of deployment A supply chain review is fundamentally important when it comes to ensuring your suppliers are doing what they have been contracted to do, or are being asked to comply with when it comes to sustainability. Many organisations only go as far as the “farm gate” and don’t necessarily step into the “farm paddock”. By only going as far as the “farm gate” you run the risk of not knowing how your raw materials or products were produced. For example, does the producer engage in sustainable practices such as ensuring the product is grown to standard or the animal was cared for to standard? If the product is packaging, do you know that the producer grew the product sustainably and that the paper produced as the end product (or cardboard) was produced as part of a renewable forestation program? If your contractor is engaging to manufacture a good, build a building or execute a project - are you sure it is all above board? Link: Supply chain review methodology Link: Supply chain review costs Link: Overview of the team Link: Where is the team based? The risks of not knowing how the raw materials were produced or work is being carried out can have immense implications on the brand of your business or organisation – for example, was the packaging of your product taken from a deforested rain forest? Was the food product grown using unacceptable animal care standards? Did the supplier conform to standards and compliance? If you are in the business of procuring a service from a firm that provides services or project labour related to construction and infrastructure – are the raw materials being used sustainable? Are the people working on the project site trained and educated to the point where the project will be delivered on time, to budget and in a sustainable way? There have been a number of examples in recent times where organisations have had their brands exposed because of the performance or behaviour of suppliers in the supply chain. In many cases, the company involved in the procurement of a product or service was unaware of the hidden practices of a supplier and, therefore, only discovered this when the supplier was exposed. More importantly, organisations have no control of how some of these suppliers are exposed and more generally this is occurring online and through social media networks. A Sustain Group supply chain review looks at proposed suppliers and current suppliers. This process includes: Reviewing the supplier and any subsidiary companies ahead of being signed off as a supplier to your organisation – this review extends into developing countries and foreign entities. It could also include physical and unannounced site inspections and auditing of an organisations sustainability commitments. Reviewing a current supplier to ensure that they are meeting any commitments under contract -this could include regular site inspections and auditing of documented commitments. A Sustain Group supply chain review is an independent assessment of your suppliers and seeks to ensure that any gaps or problems are identified and recommendations made to fill those gaps or assess the need to replace suppliers. The review looks at the following major criteria: *Is the supplier abiding* by the stipulated sustainability criteria of the contract. *Does the supplier have policies and procedures* in place that cover the environment, sustainability and corporate social responsibility & Can information be sourced in the public domain about failings of an organisation to meet regulatory or legal frameworks. *Are the raw materials* being sourced or produced in a sustainably measurable way? *If the supplier is located in a developing country*, is the supplier compliant with labour laws? While the above is not exhaustive, they are the key elements of ensuring suppliers are not only doing what they have been contracted to do, but doing it legally, sustainably and responsibly; and in line with your requirements. Like The Sustain Group's carbon audit process, the supply chain review follows a comprehensive structure that is commercial in confidence. If you would like more information or arrange an initial consultative session please call us.