White Paper: How Supplier Collaboration is Changing the Game by Driving Environmental and Corporate Performance

White Paper: How Supplier Collaboration is Changing the Game by Driving Environmental and Corporate Performance

“…while the concept clearly worked at Asda-Walmart, and for other businesses besides, would it work for GSK? And for its supply base?”
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[Whitepaper] Insight into #SupplierCollaboration from @asda, @GSK, @RBSGroup, @2degreesnetwork & more: http://bit.ly/PLwtppr #supplychain
Wednesday, June 3, 2015 - 8:30am

CONTENT: Article

With global companies having increasingly fragmented and disparate supply chains, it’s proving increasingly difficult to drive measurable innovation, long-term efficiency and sustainable and assured quality across the supply base.

Back in 2010, British pharmaceutical giant GSK reached a sobering conclusion. Keen to reduce its energy costs and improve its sustainability performance, it had discovered that more than a third of its carbon footprint lay not within its own operations, but in those of its supplier base.

One of the key issues for GSK was that from a supplier perspective, no single supplier had more than a 1% impact on its carbon footprint, meaning engagement levels would have to be extremely high if a material impact was going to be made on its suppliers’ carbon footprint.

As more businesses seek to engage with disparate and fragmented suppliers to address both sustainability and important corporate agendas (such as innovation, efficiency improvement, quality, and labor best practices) – the problem of how to do this efficiently and at scale is one that is increasingly difficult to solve.

Yet the issue can’t be ignored, especially for consumer-facing businesses such as retailers and consumer packaged goods businesses, inactivity isn’t an option. 

Most companies do seem to be trying to address these challenges in traditional ways - enforcing standards, audits, top down diktat, transactional approaches, organizing global conferences - but few have had tangible achievements at scale that promote long-lasting trust across the supply base.

For GSK, they came to adopt an approach that had been undertaken by other blue chips such as Asda-Walmart, Tesco and the Royal Bank of Scotland. Namely, online ‘communities’ of suppliers, hosted and facilitated for companies in GSK’s position.. 

With this in mind2degrees, the online collaboration platform for sustainable business, and Procurement Leaders have published a Supplier Collaboration White Paper, which takes a thorough look at collaborative approaches to supply chain management.

The White Paper covers:

  • Candid insight, input and advice from GSK, Asda-Walmart, Cranfield University, Royal Bank of Scotland, and the Institute of Grocery Distribution on the new approaches to building large scale collaboration and transparency across the supply base.
  • How Asda-Walmart’s Sustain and Save Exchange supplier program is driving efficiency and cost and risk reduction.
  • How GSK went from engaging with individual suppliers to working with them at scale, in order to make a tangible difference in the sustainability performance of its supply base overall.
  • New research on how levels of trust are built between suppliers and customers who use these new approaches.
  • How facilitation is vital to create and reward collaborative behaviors whilst ensuring compliance with competition law.
  • Examples of online community programs orchestrating a ‘richness of opportunity that otherwise wouldn’t exist’.

The full White Paper can be downloaded for free here.