Sustainable Procurement
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- Angelina Daniel
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1 Sustainable Procurement Liz Holford MBA MCIPS Supply Chain Development Ltd CIPS Harrow Branch, 24 th June 2015
2 What we do Tendering & value chain management Project development & delivery Benchmarking / Peer analysis Strategy, policy & action plans Monitoring Reporting
3 Who we do it for
4 To consider 1. What is sustainable procurement? 2. Why do it? 3. How to do it? 4. Examples
5 What is Sustainable Development? Development that meets the needs of the present without compromising the ability of future generations to meet their own needs Brutdland Report Our Common Future enduring, balanced approach to economic activity, environmental responsibility and social progress BS8900:2006 5
6 What is sustainable procurement? Using procurement to support wider social, economic and environmental objectives, in ways that offer real long-term benefits. Sir Neville Simms Chairman Sustainable Procurement Task Force = Responsible procurement and includes responsible sourcing 6
7 Yes procurement really can support sustainability One of the most effective ways we found to deliver a sustainable Games is to embed sustainability upfront in the procurement process. Our Sustainable Sourcing Code is inspiring change amongst our suppliers, sponsors and licensees, who see the business advantages of sourcing sustainably Paul Deighton, CEO London Organising Committee of the Olympic Games (LOCOG), April 2011
8 Issues currently addressed through sustainable procurement
9 Why do sustainability & sustainable procurement? The old reasons The new reasons
10 Why do sustainability & sustainable procurement? Quality: 1980/90s Health & safety: 1990s/2000s Sustainability: 2010s
11 How to do sustainable procurement British Standard in Sustainable Procurement: BS 8903 ISO coming soon
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15 Carillion 27m bottom line benefits in 2014 through green decision making E.g. reclaiming bricks from construction sites, refurbishing cabins on-site rather than getting new ones, harvesting rainwater 28% reduction in water consumption since 2012, 95% waste diversion-from-landfill rate
16 Tri-borough Leisure & Library Services Brent, Ealing & Harrow Councils 30m savings over 10 years ms upgrade to facilities and services Target group gyms and inclusive activity to improve health outcomes in hard to reach groups Local jobs, apprenticeships, work placements and supply chain development Photos: Harrow Times
17 Harrow Council: Housing Responsive Repairs & Maintenance Service Supply value chain analysis and pre-market engagement resulted in going to market with 4 lots 1 lot won by a small, local firm 1 lot won by a medium firm based in neighbouring authority 2 lots won by a national firm Customer satisfaction in excess of 95% (target = 90%) Targets being exceeded for jobs completed right first time 15% savings on prices paid under previous [single] contract Apprenticeships, local jobs and local spend generated Happy residents!
18 Crossrail 1. Suppliers 1700 businesses have secured work 42% SME & 62% outside London 2. Wellbeing Constructing Better Health scheme 3. Community Investment Programme 4. Jobs & skills Tunnelling & Underground Construction Academy; training for 3,500 people 260 apprentices already 1858 vacancies via Jobs Brokerage Service Data & image: Crossrail
19 Glasgow s Emirates Stadium & Chris Hoy Velodrome Data & picture: Sir Robert McAlpine Value of tenders awarded to; SMEs m local SMEs and Ses - 6.4m 57 apprenticeships 182 new entrants to construction industry 300 person weeks of work placements Estimated savings to central government from Job Seekers Allowance alone = 654,500
20 Example savings: waste 80 Cost of sending one tonne of waste to landfill Save money by: Producing less waste Separating waste Reusing, recycling or composting An infrastructure client has realised they can save over 1m a year just by getting contractors to put different types of waste into different receptacles
21 Example savings: through employee engagement and equality 30,614 What it costs to replace one employee (Oxford Economics, 2014) Cost of defending / losing a claim for unfair dismissal ( based on a one day tribunal) Save money by: Promoting fairness and respect Developing and supporting people Combatting discrimination complying with the law From 4k legal fees + pay-out of up to 74k )
22 Lessons Learnt Ask early and listen to the ideas of the market Ask for sustainability and measure and report it or you don t get it An integral part of core delivery, alongside cost savings
23 Thank you let s discuss Liz Holford MBA MCIPS info@supplychainfuture.co.uk
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