Responsible Sourcing Collaboration - Increasing the potential for responsible sourcing

Sustainability is to often a “side track”!

Change of strategic direction & mindset is needed!!

A strong company culture as foundation & compass

Clear leadership and consistent messages!

Integrate Sustainability in Business Strategic direction and goals are set Serve as input to all functions Integrate in business strategies How can we contribute & generate business value?

The result will be…… A clear business strategy & actionplan Sustainability is integrated – not a side track! Management & Key Staff is engaged and take responsibility

The sourcing team has to take full responsibility!

Opportunities in 4 main categories

Sourcing strategies Number of suppliers? Global v/s Local/Regional sourcing Long term development Development projects with suppliers

New supplier? Existing supplier first! Costs when changing supplier; - own staff - administration - start-up costs - quality costs - “20% rule”

Focus on less but bigger suppliers

Strategic collaboration between Range & Sourcing teams

Level of buyers engagement Set expectations Communicate the Code of Conduct and make it part of the purchasing agreement Long term development of suppliers

Energy savings at textile production IKEA supplier in Bangladesh Reduced energy consumption by 29% Save 1,1 mio euro annually Reduced CO2 emissions by ton annually

Collaboration is core -you shall never walk alone…….

Collaborative experiences Based on your “homework” we’ll share and learn in groups by sharing best practice; Good examples of collaboration – which functions are involved internally and at the supplier? Good examples of measuring supplier performance – which KPI’s are you using? You’ll now have 25 min for sharing Be ready to share one example on each question verbally with the other groups

“Cheat sheet - Key takeaways” Sustainability is often a “side track” A strong company culture as compass Clear leadership and consistent messages Set a strategic direction and integrate in all functions The sourcing team has to take full responsibility High potential to reduce cost, increase profitability, minimize risk and strengthen the brand Start of new a supplier is costly Long term partnership with selected suppliers Collaboration internally and with your suppliers is core