resource efficient and sustainable buying - wrap.org.uk studies_resource efficient... · stephen...
TRANSCRIPT
Introduction WRAP wishes to harness the massive purchasing power that lies behind the sourcing of our food products to drive resource efficiency and sustainability Buying practices and incentives for buyers are focused on price quality and delivery Rarely do these arrangements include waste energy or water for example These case studies illustrate how companies have made a start by engaging with their suppliers on sustainability to encourage greater innovation and collaboration WRAP wishes to support companies by encouraging for example
Linking corporate sustainability targets to buyer incentives and targets
through an enhanced category management process
Undertaking supply chain risk assessments to identify category pinch
points on waste water bio-diversity and energy
Developing enhanced product specifications that reflect reductions in
resource use
Case studies
page 1
Resource efficient and sustainable buying Exemplar case studies of how retailers and manufacturers have introduced sustainability initiatives into their buying operations
We spend over pound100bn on food each year ndash
a massive opportunity to drive resource
efficiency and sustainability through better
buying
Introduction
The Co-operative Food
Walmart Boots Coca-cola
Case studies
page 2
Resource efficient and sustainable buying Case Studies
Identifying opportunities Boots UK identified the opportunity to integrate its sustainability goals at source with the New Product Development programme Taking a product life cycle viewpoint Boots UK can highlight specific areas of high impact and look to design these out of future product iterations Implementation key steps taken Boots UK introduced its Product Sustainability Strategy in 2010 The new tool assesses products for 24 sustainability metrics including energy consumption materialsrsquo environmental and biodiversity impact water use renewable sourcing waste and social issues The tool was launched in May 2011 and product development and technical staff at both the Nottingham support office and the Hong Kong sourcing office have been trained with the tool
Boots UK has successfully incorporated sustainable product development into its New Product Development programme The initiative is driven by strategic themes including resource scarcity brand protection and the need for new business models Boots UK has developed a process to assess the sustainability ldquofootprintrdquo of its products A key feature of the process is a Boots developed tool to measure 24 sustainability indicators across the lifecycle of any given Boots product The web based tool which was peer reviewed by Forum for the Future enables suppliers to remotely enter product data create and view sustainability profiles for their products This enables the supply chain to understand and prioritise development options to improve sustainability Key achievements By the end of March 2012 Boots UK had used this process to assess
products within seven own brand cosmetics and toiletries ranges The re-launch of the Botanics toiletries brand in summer 2012 used
the process to define sustainability objectives for both product and packaging As a result products showed a significant improvement in footprint from full traceability of natural ingredients removal of ingredients with a risk of persistence in the environment and increase of recycled material in packaging
Case studies
page 3
Resource efficient and sustainable buying Case Studies
The new sustainable Product Development Process is shown below along with an exemplar comparison of two product footprints produced through the tool
Boots 2013b Product sustainability
Figure 1 Product development process
Figure 2 Sustainability footprints
ldquoThe process enables the creation of a sustainability profile or footprint for any product or range of products which allows us to score and compare the relative performance of individual ingredients products and entire product ranges It identifies any impact hotspots (high risk areas) and produces a database of sustainability performance data This allows analysis reporting and greater understanding of the available sustainability improvement opportunities It also enables well-focused improvement targets to be establishedrdquo
Boots UK
Resource efficient and sustainable buying Case Studies
Company profile Boots UK is a member of Alliance Boots a leading international pharmacy-led health and beauty group delivering a range of products and services to customers Working in close partnership with manufacturers and pharmacists Alliance Boots is committed to improving health in the local communities it serves and helping its customers and patients to look and feel their best Its focus is on growing its two core businesses pharmacy-led health and beauty retailing and pharmaceutical wholesaling and distribution Alliance Boots has a presence in more than 25 countries and employs over 108000 people Alliance Boots has pharmacy-led health and beauty retail businesses in nine countries and operates more than 3100 health and beauty retail stores of which just over 3000 have a pharmacy Note figures are approximate as at 31 March 2013 and include associates and joint ventures References Boots 2013a Our Group Boots 2013b Product sustainability
Key lessons Boots UK has been able to improve the environmental performance of materials reduce the impact of packaging and develop new products which have a superior performance and improved sustainability footprints Potential benefits
Figure 3 Benefits of the new sustainability process
Case studies
page 4
Resource efficient and sustainable buying Case Studies
Key achievements The number of suppliers engaging in discussions is increasing (over
100 suppliers attended the 2012 Supplier Sustainability Summit and over 140 attended a similar webinar in 2013)
As part of CCErsquos lsquoCarbon Challengersquo introduced at the 2012 Supplier Sustainability Summit all CCE suppliers will implement a carbon measurement and management plan
CCE encourages supplier innovation to introduce sustainability throughout its supply chain and awarded the following suppliers for their work in 2012
Coca-Cola Enterprises Limited (CCE) is increasing its supplier engagement and collaboration on sustainability issues across its supply chain through the hosting of annual Supplier Sustainability Summits
Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress
Figure 4 Supplier activity
Case studies
page 5
Identifying opportunities CCE identified the opportunity to actively improve supplier relations by fostering and encouraging innovation in its supply chain that will ultimately contribute towards CCErsquos own sustainability targets Stephen Moorhouse General Manager and Vice President Supply Chain explains Implementation key steps taken CCE are achieving supplier collaboration and innovation through the following steps The SRM programme uses a robust scorecard process where each
supplier is measured against criteria in four areas quality service value and corporate responsibility and sustainability This performance is reviewed by the CCE Procurement Team and prizes and incentives are awarded to suppliers who demonstrate innovation and performance improvement
Resource efficient and sustainable buying Case Studies
ldquoOur vision is to become a low-carbon zero-waste business while inspiring a more sustainable tomorrow To do this we must look beyond minimising our own impact and towards collaboration with our suppliers across our value chain Recognizing outstanding performance and exploring innovative ways of working together at the Summit will collectively move us towards a future where we can grow our businesses but not our carbon footprintsldquo
The SRM programmer provides a formalised framework within which
to develop joint action plans and develop relationships
Inviting suppliers to a range of networking activities Supplier Sustainability Summits Supplier Innovation Summits Supplier Sustainability Webinars and Supplier Award Ceremonies and
Participants hear from international sustainability experts eg the
2012 Supplier Sustainability Summit hosted speakers from the Cambridge Programme for Sustainability Leadership International Business Leaders Forum and the Ashridge Business School
Key lessons A supplier survey in June 2013 identified the following insights for CCE (CCE 2013a) The main drivers of sustainability within CCE suppliers are Long-
term business viability (60) Energy cost savings (43) Customer preference (32) and
The following are most critical to driving sustainability progress in CCE suppliers Cost (40) and Technology (32)
For continued successful supplier engagement CCE will therefore have to focus on cost savings and the business case for introducing sustainability into supplier operations
Coca-Cola Enterprises 2012 CCE Sets Carbon Reduction Plans with Key Suppliers at Annual Summit and Recognizes Outstanding Supplier Performance
Case studies
page 6
Resource efficient and sustainable buying Case Studies
ldquoSuppliers recognise that sustainability is about long-term business benefits and cost savings as well as customer expectations ndash which is aligned with our own business case for sustainability as we look to create a low-carbon zero-waste future Sharing experiences and working together will help us grow our businesses whilst reducing our environmental impactrdquo
Stephen Moorhouse General Manager and Vice President Supply
Chain at Coca-Cola Enterprises
Coca-Cola Enterprises 2013b About Coca-Cola Enterprises Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress
Company profile CCE is the third-largest independent Coca-Cola bottler and is the sole licensed bottler of The Coca-Cola Company products in the UK CCE employs around 4400 people across the United Kingdom It is already demonstrating considerable sustainability achievements in respect of its own operations CCErsquos manufacturing sites meet ISO14001 certification
CCE has reduced its energy use ratio across manufacturing
operations by 21 since 2001 and more than 99 of waste at its sites is now recovered or recycled and
CCE calculates and publishes CO2 emissions from manufacture and distribution
Future plans As a result of the latest supplier survey the role of technology as an enabler of sustainable solutions will be a key topic of discussion at CCErsquos broader Sustainability Innovation Summit in October 2013
References Coca-Cola Enterprises 2012 CCE Sets Carbon Reduction Plans with Key Suppliers at Annual Summit and Recognizes Outstanding Supplier Performance Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress Coca-Cola Enterprises 2013b About Coca-Cola Enterprises
Case studies
page 7
Resource efficient and sustainable buying Case Studies
The Co-operative Food achieved increased returns for growers and reduced waste throughout the supply chain by utilising 100 of its crop Through flexible product specifications and greater analysis of sizes and SKUs available a proportion of what once went to animal feed can now be sold to shoppers The Co-operative Food operates one of the UKrsquos largest farming networks growing wheat potatoes onions and strawberries For these and other produce which The Co-op buys almost 100 of the farmrsquos outputs can be used This has proven particularly beneficial given variability in climate conditions which have had significant impacts on production quality and on yields
The Co-op takes 100 of all potatoes grown on its farms Two packing facilities serve a range of customers with varying specifications dependant on whether itrsquos processers wholesalers discounters and retailers The benefits include a closer integration of the supply chain better provenance and reduced loss and waste For example Smaller potatoes can be removed from batches and sold as baby
roasters smaller still or blemished potatoes can be sold in value packs or used in ready meals
Larger potatoes can be sold on wholesale markets generally to foodservice businesses where they are cut and used in meal preparations
Through a producer organisation The Co-op ensures that 100 of strawberries grown have a market at the time of optimum ripeness Key Benefits
Effective whole crop buying policy makes use of up to 20 more of
the crop
Crop security in the supply chain reduces price shocks
More responsive to variability in growing conditions
Maximise revenue streams for the business
Produce goes through grading faster and can therefore have a longer
shelf-life reducing retail waste
Reduced distribution waste as market decisions are made faster
Consistent availability of products
Greater retailer control of sales price and promotions
Case studies
page 8
Resource efficient and sustainable buying Case Studies
Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 WRAP 2011 Fruit and vegetable resource maps
The buying policy also relies on there being a range customers or a product that can be ranged within one retailer as a whole product if they have the capacity to use loose (ie product as dug or harvested) and the capability to utilise huge variations in size weight and uniformity Alternatively the approach works well where there is a range of customers each with certain characteristics so that their specifications utilise the crop fully Company profile The Co-operative Food is a branch of the larger Co-operative Group It is the UKrsquos fifth biggest retailer with one of the UKrsquos largest farming operations and 2800 stores UK-wide The Co-operative Food employs over 74000 employees The Co-operative is already identified as an environmentally sensitive organisation ndash in 2012 it won the Tetra Pak Environmental Sustainability Award at the IGD Food Industry Awards for its work conserving farmland biodiversity References Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 The Co-operative Group 2013 The Co-operative Food The Grocer 2011 Bolland wages war on food waste levels WRAP 2011 Fruit and vegetable resource maps
Implementation Key steps taken Whole crop use has been implemented through the following three stages in the buying process 1 Linking producer organisations to bring farmers together who
produce the same crop They spread the risk of crop failure by varying conditions but still benefiting from centralised harvesting packing and marking of lower grade produce
2 Creating a whole crop buying programme to meet demand For example as only 80 of The Co-oprsquos potato demand can be procured through its farming network this additional capacity ensures that customer demand can be fully satisfied Incorporating whole crop buying into their existing producer organisation programme scales particularly well since The Co-operative already has the necessary systems in place to make decisions on crop streams quickly
3 Specifications are agreed with all businesses dependant on the crop Changes are constantly needed and flexibility is key as no one specification will be fit for purpose 52 weeks of the year
Key Lessons Although the buying process has become more streamlined the emphasis has shifted to in-field selection The Co-op look at the salad industry where pack-houses are fast approaching a thing of the past In field rigs are replacing pack-houses with the capability to make one pass in field grading and packing for multiple customers and specifications as they harvest directly to market
Case studies
page 9
Resource efficient and sustainable buying Case Studies
Wal-Mart Stores Inc (Walmart) parent company of ASDA in the UK is embarking on the huge task of addressing the emissions arising from its supply base which account for around 90 of overall emissions Walmart has set up a supplier Sustainability Index to rank suppliers on their performance encourage innovation in its supply chain and drive positive change at scale The index will eventually be implemented globally including in the UK Key achievements
Introduced a Sustainability Index for a supplier-based approach to
sustainability
Over 1000 suppliers have taken part in the Sustainability Index across
200 categories
Represents about 70 of the sales within the categories Walmart is
currently evaluating
Buyers now work directly with producers and suppliers to set goals to
reduce or eliminate food waste at each step of the supply chain ndash this
is an example of supplier innovation as a result of the Sustainability
Index
Identifying opportunities Walmart has identified the opportunity to assess suppliers more comprehensively after discerning that over 90 of its emissions occur in the supply chain The Sustainability Index is based on the work of The Sustainability Consortium which is delivering tools to measure evaluate and drive progress on the biggest sustainability opportunities across the lifecycle of products
ldquoWersquore really trying to accelerate the scale of sustainability innovation not just identify green niche productsrdquo
Jeff Rice Senior Director of Sustainability at Walmart
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability
Source
Case studies
page 10
Resource efficient and sustainable buying Case Studies
Implementation key steps taken Walmart began the immense task of assessing its 60000 suppliers in 2006 when it comprehensively surveyed its suppliersrsquo packaging impacts This was followed in 2009 by a 15-question survey and has now led to the development of the current Sustainability Index The index is implemented in the following way
The index is underpinned by robust environmental science provided
by The Sustainability Consortium (TSC) part-funded by the Walmart
Foundation Walmart has used TSCrsquos metrics to develop an index for
200 product categories and category scorecards to date and is
expanding to additional categories over time
Suppliers are contacted directly as and when their categories are
addressed by the expanding index
Scorecards are based around a self-assessed questionnaire and
suppliers are required to report twice yearly
Suppliers are ranked against peers in the same buying category with
a score of 1-100
Walmart buyers are being trained on the key sustainability issues in
their categories using the Category Sustainability Profiles developed
by TSC and they evaluate supplier performance against the biggest
challenges across the life cycle of their products
As of February 2013 every Walmart US and Samrsquos buyer merchant
and key global sourcing team now has performance objectives
dedicated to sustainability topics in their categories
Supplier scores and methods to improve them are discussed with
suppliers at regular intervals (eg buying meetings quarterly reviews
etc)
Key lessons Walmart learned valuable lessons through the process and are approaching the index in an iterative manner One of the key lessons learnt is that ranking or scoring of suppliers is critical to ensuring innovation and reduction of environmental impact in supplier behaviour Company profile Walmart is a large multinational retail chain based in the USA and is the worldrsquos third largest public corporation Walmart currently has 10800 stores in 27 countries with a customer base of 245 million Fiscal year sales in 2013 amounted to approximately US$466 billion Future plans The long term goal of the Sustainability Index is to design more sustainable products and to make Walmartrsquos global supply chain more socially and environmentally accountable and responsible It also aims to incentivise sustainability being a bigger part of day-to-day jobs By end of 2013 the Sustainability Index will cover approximately 70 of
sales By 2017 Walmart will buy 70 of goods for US stores from suppliers that
use the Sustainability Index References Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story Walmart 2013b Walmart Sustainability Index ndash Program Overview
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story
Case studies
page 11
Waste amp Resources Action Programme
The Old Academy 21 Horse Fair Banbury Oxon OX16 OAH
Tel 01295 819 900 Fax 01295 819 911 E-mail infowraporguk
Helpline free phone 0808 100 2040 wwwwraporguk
While steps have been taken to ensure its accuracy WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate incomplete or misleading This material is copyrighted It may be reproduced free of charge subject to the material being accurate and not used in a misleading context The source of the material must be identified and the copyright status acknowledged This material must not be used to endorse or used to suggest WRAPrsquos endorsement of a commercial product or service For more detail please refer to our Terms amp Conditions on our website - wwwwraporguk
For more information visit wwwwraporguk
Case studies
page 2
Resource efficient and sustainable buying Case Studies
Identifying opportunities Boots UK identified the opportunity to integrate its sustainability goals at source with the New Product Development programme Taking a product life cycle viewpoint Boots UK can highlight specific areas of high impact and look to design these out of future product iterations Implementation key steps taken Boots UK introduced its Product Sustainability Strategy in 2010 The new tool assesses products for 24 sustainability metrics including energy consumption materialsrsquo environmental and biodiversity impact water use renewable sourcing waste and social issues The tool was launched in May 2011 and product development and technical staff at both the Nottingham support office and the Hong Kong sourcing office have been trained with the tool
Boots UK has successfully incorporated sustainable product development into its New Product Development programme The initiative is driven by strategic themes including resource scarcity brand protection and the need for new business models Boots UK has developed a process to assess the sustainability ldquofootprintrdquo of its products A key feature of the process is a Boots developed tool to measure 24 sustainability indicators across the lifecycle of any given Boots product The web based tool which was peer reviewed by Forum for the Future enables suppliers to remotely enter product data create and view sustainability profiles for their products This enables the supply chain to understand and prioritise development options to improve sustainability Key achievements By the end of March 2012 Boots UK had used this process to assess
products within seven own brand cosmetics and toiletries ranges The re-launch of the Botanics toiletries brand in summer 2012 used
the process to define sustainability objectives for both product and packaging As a result products showed a significant improvement in footprint from full traceability of natural ingredients removal of ingredients with a risk of persistence in the environment and increase of recycled material in packaging
Case studies
page 3
Resource efficient and sustainable buying Case Studies
The new sustainable Product Development Process is shown below along with an exemplar comparison of two product footprints produced through the tool
Boots 2013b Product sustainability
Figure 1 Product development process
Figure 2 Sustainability footprints
ldquoThe process enables the creation of a sustainability profile or footprint for any product or range of products which allows us to score and compare the relative performance of individual ingredients products and entire product ranges It identifies any impact hotspots (high risk areas) and produces a database of sustainability performance data This allows analysis reporting and greater understanding of the available sustainability improvement opportunities It also enables well-focused improvement targets to be establishedrdquo
Boots UK
Resource efficient and sustainable buying Case Studies
Company profile Boots UK is a member of Alliance Boots a leading international pharmacy-led health and beauty group delivering a range of products and services to customers Working in close partnership with manufacturers and pharmacists Alliance Boots is committed to improving health in the local communities it serves and helping its customers and patients to look and feel their best Its focus is on growing its two core businesses pharmacy-led health and beauty retailing and pharmaceutical wholesaling and distribution Alliance Boots has a presence in more than 25 countries and employs over 108000 people Alliance Boots has pharmacy-led health and beauty retail businesses in nine countries and operates more than 3100 health and beauty retail stores of which just over 3000 have a pharmacy Note figures are approximate as at 31 March 2013 and include associates and joint ventures References Boots 2013a Our Group Boots 2013b Product sustainability
Key lessons Boots UK has been able to improve the environmental performance of materials reduce the impact of packaging and develop new products which have a superior performance and improved sustainability footprints Potential benefits
Figure 3 Benefits of the new sustainability process
Case studies
page 4
Resource efficient and sustainable buying Case Studies
Key achievements The number of suppliers engaging in discussions is increasing (over
100 suppliers attended the 2012 Supplier Sustainability Summit and over 140 attended a similar webinar in 2013)
As part of CCErsquos lsquoCarbon Challengersquo introduced at the 2012 Supplier Sustainability Summit all CCE suppliers will implement a carbon measurement and management plan
CCE encourages supplier innovation to introduce sustainability throughout its supply chain and awarded the following suppliers for their work in 2012
Coca-Cola Enterprises Limited (CCE) is increasing its supplier engagement and collaboration on sustainability issues across its supply chain through the hosting of annual Supplier Sustainability Summits
Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress
Figure 4 Supplier activity
Case studies
page 5
Identifying opportunities CCE identified the opportunity to actively improve supplier relations by fostering and encouraging innovation in its supply chain that will ultimately contribute towards CCErsquos own sustainability targets Stephen Moorhouse General Manager and Vice President Supply Chain explains Implementation key steps taken CCE are achieving supplier collaboration and innovation through the following steps The SRM programme uses a robust scorecard process where each
supplier is measured against criteria in four areas quality service value and corporate responsibility and sustainability This performance is reviewed by the CCE Procurement Team and prizes and incentives are awarded to suppliers who demonstrate innovation and performance improvement
Resource efficient and sustainable buying Case Studies
ldquoOur vision is to become a low-carbon zero-waste business while inspiring a more sustainable tomorrow To do this we must look beyond minimising our own impact and towards collaboration with our suppliers across our value chain Recognizing outstanding performance and exploring innovative ways of working together at the Summit will collectively move us towards a future where we can grow our businesses but not our carbon footprintsldquo
The SRM programmer provides a formalised framework within which
to develop joint action plans and develop relationships
Inviting suppliers to a range of networking activities Supplier Sustainability Summits Supplier Innovation Summits Supplier Sustainability Webinars and Supplier Award Ceremonies and
Participants hear from international sustainability experts eg the
2012 Supplier Sustainability Summit hosted speakers from the Cambridge Programme for Sustainability Leadership International Business Leaders Forum and the Ashridge Business School
Key lessons A supplier survey in June 2013 identified the following insights for CCE (CCE 2013a) The main drivers of sustainability within CCE suppliers are Long-
term business viability (60) Energy cost savings (43) Customer preference (32) and
The following are most critical to driving sustainability progress in CCE suppliers Cost (40) and Technology (32)
For continued successful supplier engagement CCE will therefore have to focus on cost savings and the business case for introducing sustainability into supplier operations
Coca-Cola Enterprises 2012 CCE Sets Carbon Reduction Plans with Key Suppliers at Annual Summit and Recognizes Outstanding Supplier Performance
Case studies
page 6
Resource efficient and sustainable buying Case Studies
ldquoSuppliers recognise that sustainability is about long-term business benefits and cost savings as well as customer expectations ndash which is aligned with our own business case for sustainability as we look to create a low-carbon zero-waste future Sharing experiences and working together will help us grow our businesses whilst reducing our environmental impactrdquo
Stephen Moorhouse General Manager and Vice President Supply
Chain at Coca-Cola Enterprises
Coca-Cola Enterprises 2013b About Coca-Cola Enterprises Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress
Company profile CCE is the third-largest independent Coca-Cola bottler and is the sole licensed bottler of The Coca-Cola Company products in the UK CCE employs around 4400 people across the United Kingdom It is already demonstrating considerable sustainability achievements in respect of its own operations CCErsquos manufacturing sites meet ISO14001 certification
CCE has reduced its energy use ratio across manufacturing
operations by 21 since 2001 and more than 99 of waste at its sites is now recovered or recycled and
CCE calculates and publishes CO2 emissions from manufacture and distribution
Future plans As a result of the latest supplier survey the role of technology as an enabler of sustainable solutions will be a key topic of discussion at CCErsquos broader Sustainability Innovation Summit in October 2013
References Coca-Cola Enterprises 2012 CCE Sets Carbon Reduction Plans with Key Suppliers at Annual Summit and Recognizes Outstanding Supplier Performance Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress Coca-Cola Enterprises 2013b About Coca-Cola Enterprises
Case studies
page 7
Resource efficient and sustainable buying Case Studies
The Co-operative Food achieved increased returns for growers and reduced waste throughout the supply chain by utilising 100 of its crop Through flexible product specifications and greater analysis of sizes and SKUs available a proportion of what once went to animal feed can now be sold to shoppers The Co-operative Food operates one of the UKrsquos largest farming networks growing wheat potatoes onions and strawberries For these and other produce which The Co-op buys almost 100 of the farmrsquos outputs can be used This has proven particularly beneficial given variability in climate conditions which have had significant impacts on production quality and on yields
The Co-op takes 100 of all potatoes grown on its farms Two packing facilities serve a range of customers with varying specifications dependant on whether itrsquos processers wholesalers discounters and retailers The benefits include a closer integration of the supply chain better provenance and reduced loss and waste For example Smaller potatoes can be removed from batches and sold as baby
roasters smaller still or blemished potatoes can be sold in value packs or used in ready meals
Larger potatoes can be sold on wholesale markets generally to foodservice businesses where they are cut and used in meal preparations
Through a producer organisation The Co-op ensures that 100 of strawberries grown have a market at the time of optimum ripeness Key Benefits
Effective whole crop buying policy makes use of up to 20 more of
the crop
Crop security in the supply chain reduces price shocks
More responsive to variability in growing conditions
Maximise revenue streams for the business
Produce goes through grading faster and can therefore have a longer
shelf-life reducing retail waste
Reduced distribution waste as market decisions are made faster
Consistent availability of products
Greater retailer control of sales price and promotions
Case studies
page 8
Resource efficient and sustainable buying Case Studies
Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 WRAP 2011 Fruit and vegetable resource maps
The buying policy also relies on there being a range customers or a product that can be ranged within one retailer as a whole product if they have the capacity to use loose (ie product as dug or harvested) and the capability to utilise huge variations in size weight and uniformity Alternatively the approach works well where there is a range of customers each with certain characteristics so that their specifications utilise the crop fully Company profile The Co-operative Food is a branch of the larger Co-operative Group It is the UKrsquos fifth biggest retailer with one of the UKrsquos largest farming operations and 2800 stores UK-wide The Co-operative Food employs over 74000 employees The Co-operative is already identified as an environmentally sensitive organisation ndash in 2012 it won the Tetra Pak Environmental Sustainability Award at the IGD Food Industry Awards for its work conserving farmland biodiversity References Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 The Co-operative Group 2013 The Co-operative Food The Grocer 2011 Bolland wages war on food waste levels WRAP 2011 Fruit and vegetable resource maps
Implementation Key steps taken Whole crop use has been implemented through the following three stages in the buying process 1 Linking producer organisations to bring farmers together who
produce the same crop They spread the risk of crop failure by varying conditions but still benefiting from centralised harvesting packing and marking of lower grade produce
2 Creating a whole crop buying programme to meet demand For example as only 80 of The Co-oprsquos potato demand can be procured through its farming network this additional capacity ensures that customer demand can be fully satisfied Incorporating whole crop buying into their existing producer organisation programme scales particularly well since The Co-operative already has the necessary systems in place to make decisions on crop streams quickly
3 Specifications are agreed with all businesses dependant on the crop Changes are constantly needed and flexibility is key as no one specification will be fit for purpose 52 weeks of the year
Key Lessons Although the buying process has become more streamlined the emphasis has shifted to in-field selection The Co-op look at the salad industry where pack-houses are fast approaching a thing of the past In field rigs are replacing pack-houses with the capability to make one pass in field grading and packing for multiple customers and specifications as they harvest directly to market
Case studies
page 9
Resource efficient and sustainable buying Case Studies
Wal-Mart Stores Inc (Walmart) parent company of ASDA in the UK is embarking on the huge task of addressing the emissions arising from its supply base which account for around 90 of overall emissions Walmart has set up a supplier Sustainability Index to rank suppliers on their performance encourage innovation in its supply chain and drive positive change at scale The index will eventually be implemented globally including in the UK Key achievements
Introduced a Sustainability Index for a supplier-based approach to
sustainability
Over 1000 suppliers have taken part in the Sustainability Index across
200 categories
Represents about 70 of the sales within the categories Walmart is
currently evaluating
Buyers now work directly with producers and suppliers to set goals to
reduce or eliminate food waste at each step of the supply chain ndash this
is an example of supplier innovation as a result of the Sustainability
Index
Identifying opportunities Walmart has identified the opportunity to assess suppliers more comprehensively after discerning that over 90 of its emissions occur in the supply chain The Sustainability Index is based on the work of The Sustainability Consortium which is delivering tools to measure evaluate and drive progress on the biggest sustainability opportunities across the lifecycle of products
ldquoWersquore really trying to accelerate the scale of sustainability innovation not just identify green niche productsrdquo
Jeff Rice Senior Director of Sustainability at Walmart
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability
Source
Case studies
page 10
Resource efficient and sustainable buying Case Studies
Implementation key steps taken Walmart began the immense task of assessing its 60000 suppliers in 2006 when it comprehensively surveyed its suppliersrsquo packaging impacts This was followed in 2009 by a 15-question survey and has now led to the development of the current Sustainability Index The index is implemented in the following way
The index is underpinned by robust environmental science provided
by The Sustainability Consortium (TSC) part-funded by the Walmart
Foundation Walmart has used TSCrsquos metrics to develop an index for
200 product categories and category scorecards to date and is
expanding to additional categories over time
Suppliers are contacted directly as and when their categories are
addressed by the expanding index
Scorecards are based around a self-assessed questionnaire and
suppliers are required to report twice yearly
Suppliers are ranked against peers in the same buying category with
a score of 1-100
Walmart buyers are being trained on the key sustainability issues in
their categories using the Category Sustainability Profiles developed
by TSC and they evaluate supplier performance against the biggest
challenges across the life cycle of their products
As of February 2013 every Walmart US and Samrsquos buyer merchant
and key global sourcing team now has performance objectives
dedicated to sustainability topics in their categories
Supplier scores and methods to improve them are discussed with
suppliers at regular intervals (eg buying meetings quarterly reviews
etc)
Key lessons Walmart learned valuable lessons through the process and are approaching the index in an iterative manner One of the key lessons learnt is that ranking or scoring of suppliers is critical to ensuring innovation and reduction of environmental impact in supplier behaviour Company profile Walmart is a large multinational retail chain based in the USA and is the worldrsquos third largest public corporation Walmart currently has 10800 stores in 27 countries with a customer base of 245 million Fiscal year sales in 2013 amounted to approximately US$466 billion Future plans The long term goal of the Sustainability Index is to design more sustainable products and to make Walmartrsquos global supply chain more socially and environmentally accountable and responsible It also aims to incentivise sustainability being a bigger part of day-to-day jobs By end of 2013 the Sustainability Index will cover approximately 70 of
sales By 2017 Walmart will buy 70 of goods for US stores from suppliers that
use the Sustainability Index References Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story Walmart 2013b Walmart Sustainability Index ndash Program Overview
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story
Case studies
page 11
Waste amp Resources Action Programme
The Old Academy 21 Horse Fair Banbury Oxon OX16 OAH
Tel 01295 819 900 Fax 01295 819 911 E-mail infowraporguk
Helpline free phone 0808 100 2040 wwwwraporguk
While steps have been taken to ensure its accuracy WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate incomplete or misleading This material is copyrighted It may be reproduced free of charge subject to the material being accurate and not used in a misleading context The source of the material must be identified and the copyright status acknowledged This material must not be used to endorse or used to suggest WRAPrsquos endorsement of a commercial product or service For more detail please refer to our Terms amp Conditions on our website - wwwwraporguk
For more information visit wwwwraporguk
Case studies
page 3
Resource efficient and sustainable buying Case Studies
The new sustainable Product Development Process is shown below along with an exemplar comparison of two product footprints produced through the tool
Boots 2013b Product sustainability
Figure 1 Product development process
Figure 2 Sustainability footprints
ldquoThe process enables the creation of a sustainability profile or footprint for any product or range of products which allows us to score and compare the relative performance of individual ingredients products and entire product ranges It identifies any impact hotspots (high risk areas) and produces a database of sustainability performance data This allows analysis reporting and greater understanding of the available sustainability improvement opportunities It also enables well-focused improvement targets to be establishedrdquo
Boots UK
Resource efficient and sustainable buying Case Studies
Company profile Boots UK is a member of Alliance Boots a leading international pharmacy-led health and beauty group delivering a range of products and services to customers Working in close partnership with manufacturers and pharmacists Alliance Boots is committed to improving health in the local communities it serves and helping its customers and patients to look and feel their best Its focus is on growing its two core businesses pharmacy-led health and beauty retailing and pharmaceutical wholesaling and distribution Alliance Boots has a presence in more than 25 countries and employs over 108000 people Alliance Boots has pharmacy-led health and beauty retail businesses in nine countries and operates more than 3100 health and beauty retail stores of which just over 3000 have a pharmacy Note figures are approximate as at 31 March 2013 and include associates and joint ventures References Boots 2013a Our Group Boots 2013b Product sustainability
Key lessons Boots UK has been able to improve the environmental performance of materials reduce the impact of packaging and develop new products which have a superior performance and improved sustainability footprints Potential benefits
Figure 3 Benefits of the new sustainability process
Case studies
page 4
Resource efficient and sustainable buying Case Studies
Key achievements The number of suppliers engaging in discussions is increasing (over
100 suppliers attended the 2012 Supplier Sustainability Summit and over 140 attended a similar webinar in 2013)
As part of CCErsquos lsquoCarbon Challengersquo introduced at the 2012 Supplier Sustainability Summit all CCE suppliers will implement a carbon measurement and management plan
CCE encourages supplier innovation to introduce sustainability throughout its supply chain and awarded the following suppliers for their work in 2012
Coca-Cola Enterprises Limited (CCE) is increasing its supplier engagement and collaboration on sustainability issues across its supply chain through the hosting of annual Supplier Sustainability Summits
Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress
Figure 4 Supplier activity
Case studies
page 5
Identifying opportunities CCE identified the opportunity to actively improve supplier relations by fostering and encouraging innovation in its supply chain that will ultimately contribute towards CCErsquos own sustainability targets Stephen Moorhouse General Manager and Vice President Supply Chain explains Implementation key steps taken CCE are achieving supplier collaboration and innovation through the following steps The SRM programme uses a robust scorecard process where each
supplier is measured against criteria in four areas quality service value and corporate responsibility and sustainability This performance is reviewed by the CCE Procurement Team and prizes and incentives are awarded to suppliers who demonstrate innovation and performance improvement
Resource efficient and sustainable buying Case Studies
ldquoOur vision is to become a low-carbon zero-waste business while inspiring a more sustainable tomorrow To do this we must look beyond minimising our own impact and towards collaboration with our suppliers across our value chain Recognizing outstanding performance and exploring innovative ways of working together at the Summit will collectively move us towards a future where we can grow our businesses but not our carbon footprintsldquo
The SRM programmer provides a formalised framework within which
to develop joint action plans and develop relationships
Inviting suppliers to a range of networking activities Supplier Sustainability Summits Supplier Innovation Summits Supplier Sustainability Webinars and Supplier Award Ceremonies and
Participants hear from international sustainability experts eg the
2012 Supplier Sustainability Summit hosted speakers from the Cambridge Programme for Sustainability Leadership International Business Leaders Forum and the Ashridge Business School
Key lessons A supplier survey in June 2013 identified the following insights for CCE (CCE 2013a) The main drivers of sustainability within CCE suppliers are Long-
term business viability (60) Energy cost savings (43) Customer preference (32) and
The following are most critical to driving sustainability progress in CCE suppliers Cost (40) and Technology (32)
For continued successful supplier engagement CCE will therefore have to focus on cost savings and the business case for introducing sustainability into supplier operations
Coca-Cola Enterprises 2012 CCE Sets Carbon Reduction Plans with Key Suppliers at Annual Summit and Recognizes Outstanding Supplier Performance
Case studies
page 6
Resource efficient and sustainable buying Case Studies
ldquoSuppliers recognise that sustainability is about long-term business benefits and cost savings as well as customer expectations ndash which is aligned with our own business case for sustainability as we look to create a low-carbon zero-waste future Sharing experiences and working together will help us grow our businesses whilst reducing our environmental impactrdquo
Stephen Moorhouse General Manager and Vice President Supply
Chain at Coca-Cola Enterprises
Coca-Cola Enterprises 2013b About Coca-Cola Enterprises Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress
Company profile CCE is the third-largest independent Coca-Cola bottler and is the sole licensed bottler of The Coca-Cola Company products in the UK CCE employs around 4400 people across the United Kingdom It is already demonstrating considerable sustainability achievements in respect of its own operations CCErsquos manufacturing sites meet ISO14001 certification
CCE has reduced its energy use ratio across manufacturing
operations by 21 since 2001 and more than 99 of waste at its sites is now recovered or recycled and
CCE calculates and publishes CO2 emissions from manufacture and distribution
Future plans As a result of the latest supplier survey the role of technology as an enabler of sustainable solutions will be a key topic of discussion at CCErsquos broader Sustainability Innovation Summit in October 2013
References Coca-Cola Enterprises 2012 CCE Sets Carbon Reduction Plans with Key Suppliers at Annual Summit and Recognizes Outstanding Supplier Performance Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress Coca-Cola Enterprises 2013b About Coca-Cola Enterprises
Case studies
page 7
Resource efficient and sustainable buying Case Studies
The Co-operative Food achieved increased returns for growers and reduced waste throughout the supply chain by utilising 100 of its crop Through flexible product specifications and greater analysis of sizes and SKUs available a proportion of what once went to animal feed can now be sold to shoppers The Co-operative Food operates one of the UKrsquos largest farming networks growing wheat potatoes onions and strawberries For these and other produce which The Co-op buys almost 100 of the farmrsquos outputs can be used This has proven particularly beneficial given variability in climate conditions which have had significant impacts on production quality and on yields
The Co-op takes 100 of all potatoes grown on its farms Two packing facilities serve a range of customers with varying specifications dependant on whether itrsquos processers wholesalers discounters and retailers The benefits include a closer integration of the supply chain better provenance and reduced loss and waste For example Smaller potatoes can be removed from batches and sold as baby
roasters smaller still or blemished potatoes can be sold in value packs or used in ready meals
Larger potatoes can be sold on wholesale markets generally to foodservice businesses where they are cut and used in meal preparations
Through a producer organisation The Co-op ensures that 100 of strawberries grown have a market at the time of optimum ripeness Key Benefits
Effective whole crop buying policy makes use of up to 20 more of
the crop
Crop security in the supply chain reduces price shocks
More responsive to variability in growing conditions
Maximise revenue streams for the business
Produce goes through grading faster and can therefore have a longer
shelf-life reducing retail waste
Reduced distribution waste as market decisions are made faster
Consistent availability of products
Greater retailer control of sales price and promotions
Case studies
page 8
Resource efficient and sustainable buying Case Studies
Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 WRAP 2011 Fruit and vegetable resource maps
The buying policy also relies on there being a range customers or a product that can be ranged within one retailer as a whole product if they have the capacity to use loose (ie product as dug or harvested) and the capability to utilise huge variations in size weight and uniformity Alternatively the approach works well where there is a range of customers each with certain characteristics so that their specifications utilise the crop fully Company profile The Co-operative Food is a branch of the larger Co-operative Group It is the UKrsquos fifth biggest retailer with one of the UKrsquos largest farming operations and 2800 stores UK-wide The Co-operative Food employs over 74000 employees The Co-operative is already identified as an environmentally sensitive organisation ndash in 2012 it won the Tetra Pak Environmental Sustainability Award at the IGD Food Industry Awards for its work conserving farmland biodiversity References Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 The Co-operative Group 2013 The Co-operative Food The Grocer 2011 Bolland wages war on food waste levels WRAP 2011 Fruit and vegetable resource maps
Implementation Key steps taken Whole crop use has been implemented through the following three stages in the buying process 1 Linking producer organisations to bring farmers together who
produce the same crop They spread the risk of crop failure by varying conditions but still benefiting from centralised harvesting packing and marking of lower grade produce
2 Creating a whole crop buying programme to meet demand For example as only 80 of The Co-oprsquos potato demand can be procured through its farming network this additional capacity ensures that customer demand can be fully satisfied Incorporating whole crop buying into their existing producer organisation programme scales particularly well since The Co-operative already has the necessary systems in place to make decisions on crop streams quickly
3 Specifications are agreed with all businesses dependant on the crop Changes are constantly needed and flexibility is key as no one specification will be fit for purpose 52 weeks of the year
Key Lessons Although the buying process has become more streamlined the emphasis has shifted to in-field selection The Co-op look at the salad industry where pack-houses are fast approaching a thing of the past In field rigs are replacing pack-houses with the capability to make one pass in field grading and packing for multiple customers and specifications as they harvest directly to market
Case studies
page 9
Resource efficient and sustainable buying Case Studies
Wal-Mart Stores Inc (Walmart) parent company of ASDA in the UK is embarking on the huge task of addressing the emissions arising from its supply base which account for around 90 of overall emissions Walmart has set up a supplier Sustainability Index to rank suppliers on their performance encourage innovation in its supply chain and drive positive change at scale The index will eventually be implemented globally including in the UK Key achievements
Introduced a Sustainability Index for a supplier-based approach to
sustainability
Over 1000 suppliers have taken part in the Sustainability Index across
200 categories
Represents about 70 of the sales within the categories Walmart is
currently evaluating
Buyers now work directly with producers and suppliers to set goals to
reduce or eliminate food waste at each step of the supply chain ndash this
is an example of supplier innovation as a result of the Sustainability
Index
Identifying opportunities Walmart has identified the opportunity to assess suppliers more comprehensively after discerning that over 90 of its emissions occur in the supply chain The Sustainability Index is based on the work of The Sustainability Consortium which is delivering tools to measure evaluate and drive progress on the biggest sustainability opportunities across the lifecycle of products
ldquoWersquore really trying to accelerate the scale of sustainability innovation not just identify green niche productsrdquo
Jeff Rice Senior Director of Sustainability at Walmart
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability
Source
Case studies
page 10
Resource efficient and sustainable buying Case Studies
Implementation key steps taken Walmart began the immense task of assessing its 60000 suppliers in 2006 when it comprehensively surveyed its suppliersrsquo packaging impacts This was followed in 2009 by a 15-question survey and has now led to the development of the current Sustainability Index The index is implemented in the following way
The index is underpinned by robust environmental science provided
by The Sustainability Consortium (TSC) part-funded by the Walmart
Foundation Walmart has used TSCrsquos metrics to develop an index for
200 product categories and category scorecards to date and is
expanding to additional categories over time
Suppliers are contacted directly as and when their categories are
addressed by the expanding index
Scorecards are based around a self-assessed questionnaire and
suppliers are required to report twice yearly
Suppliers are ranked against peers in the same buying category with
a score of 1-100
Walmart buyers are being trained on the key sustainability issues in
their categories using the Category Sustainability Profiles developed
by TSC and they evaluate supplier performance against the biggest
challenges across the life cycle of their products
As of February 2013 every Walmart US and Samrsquos buyer merchant
and key global sourcing team now has performance objectives
dedicated to sustainability topics in their categories
Supplier scores and methods to improve them are discussed with
suppliers at regular intervals (eg buying meetings quarterly reviews
etc)
Key lessons Walmart learned valuable lessons through the process and are approaching the index in an iterative manner One of the key lessons learnt is that ranking or scoring of suppliers is critical to ensuring innovation and reduction of environmental impact in supplier behaviour Company profile Walmart is a large multinational retail chain based in the USA and is the worldrsquos third largest public corporation Walmart currently has 10800 stores in 27 countries with a customer base of 245 million Fiscal year sales in 2013 amounted to approximately US$466 billion Future plans The long term goal of the Sustainability Index is to design more sustainable products and to make Walmartrsquos global supply chain more socially and environmentally accountable and responsible It also aims to incentivise sustainability being a bigger part of day-to-day jobs By end of 2013 the Sustainability Index will cover approximately 70 of
sales By 2017 Walmart will buy 70 of goods for US stores from suppliers that
use the Sustainability Index References Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story Walmart 2013b Walmart Sustainability Index ndash Program Overview
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story
Case studies
page 11
Waste amp Resources Action Programme
The Old Academy 21 Horse Fair Banbury Oxon OX16 OAH
Tel 01295 819 900 Fax 01295 819 911 E-mail infowraporguk
Helpline free phone 0808 100 2040 wwwwraporguk
While steps have been taken to ensure its accuracy WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate incomplete or misleading This material is copyrighted It may be reproduced free of charge subject to the material being accurate and not used in a misleading context The source of the material must be identified and the copyright status acknowledged This material must not be used to endorse or used to suggest WRAPrsquos endorsement of a commercial product or service For more detail please refer to our Terms amp Conditions on our website - wwwwraporguk
For more information visit wwwwraporguk
Resource efficient and sustainable buying Case Studies
Company profile Boots UK is a member of Alliance Boots a leading international pharmacy-led health and beauty group delivering a range of products and services to customers Working in close partnership with manufacturers and pharmacists Alliance Boots is committed to improving health in the local communities it serves and helping its customers and patients to look and feel their best Its focus is on growing its two core businesses pharmacy-led health and beauty retailing and pharmaceutical wholesaling and distribution Alliance Boots has a presence in more than 25 countries and employs over 108000 people Alliance Boots has pharmacy-led health and beauty retail businesses in nine countries and operates more than 3100 health and beauty retail stores of which just over 3000 have a pharmacy Note figures are approximate as at 31 March 2013 and include associates and joint ventures References Boots 2013a Our Group Boots 2013b Product sustainability
Key lessons Boots UK has been able to improve the environmental performance of materials reduce the impact of packaging and develop new products which have a superior performance and improved sustainability footprints Potential benefits
Figure 3 Benefits of the new sustainability process
Case studies
page 4
Resource efficient and sustainable buying Case Studies
Key achievements The number of suppliers engaging in discussions is increasing (over
100 suppliers attended the 2012 Supplier Sustainability Summit and over 140 attended a similar webinar in 2013)
As part of CCErsquos lsquoCarbon Challengersquo introduced at the 2012 Supplier Sustainability Summit all CCE suppliers will implement a carbon measurement and management plan
CCE encourages supplier innovation to introduce sustainability throughout its supply chain and awarded the following suppliers for their work in 2012
Coca-Cola Enterprises Limited (CCE) is increasing its supplier engagement and collaboration on sustainability issues across its supply chain through the hosting of annual Supplier Sustainability Summits
Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress
Figure 4 Supplier activity
Case studies
page 5
Identifying opportunities CCE identified the opportunity to actively improve supplier relations by fostering and encouraging innovation in its supply chain that will ultimately contribute towards CCErsquos own sustainability targets Stephen Moorhouse General Manager and Vice President Supply Chain explains Implementation key steps taken CCE are achieving supplier collaboration and innovation through the following steps The SRM programme uses a robust scorecard process where each
supplier is measured against criteria in four areas quality service value and corporate responsibility and sustainability This performance is reviewed by the CCE Procurement Team and prizes and incentives are awarded to suppliers who demonstrate innovation and performance improvement
Resource efficient and sustainable buying Case Studies
ldquoOur vision is to become a low-carbon zero-waste business while inspiring a more sustainable tomorrow To do this we must look beyond minimising our own impact and towards collaboration with our suppliers across our value chain Recognizing outstanding performance and exploring innovative ways of working together at the Summit will collectively move us towards a future where we can grow our businesses but not our carbon footprintsldquo
The SRM programmer provides a formalised framework within which
to develop joint action plans and develop relationships
Inviting suppliers to a range of networking activities Supplier Sustainability Summits Supplier Innovation Summits Supplier Sustainability Webinars and Supplier Award Ceremonies and
Participants hear from international sustainability experts eg the
2012 Supplier Sustainability Summit hosted speakers from the Cambridge Programme for Sustainability Leadership International Business Leaders Forum and the Ashridge Business School
Key lessons A supplier survey in June 2013 identified the following insights for CCE (CCE 2013a) The main drivers of sustainability within CCE suppliers are Long-
term business viability (60) Energy cost savings (43) Customer preference (32) and
The following are most critical to driving sustainability progress in CCE suppliers Cost (40) and Technology (32)
For continued successful supplier engagement CCE will therefore have to focus on cost savings and the business case for introducing sustainability into supplier operations
Coca-Cola Enterprises 2012 CCE Sets Carbon Reduction Plans with Key Suppliers at Annual Summit and Recognizes Outstanding Supplier Performance
Case studies
page 6
Resource efficient and sustainable buying Case Studies
ldquoSuppliers recognise that sustainability is about long-term business benefits and cost savings as well as customer expectations ndash which is aligned with our own business case for sustainability as we look to create a low-carbon zero-waste future Sharing experiences and working together will help us grow our businesses whilst reducing our environmental impactrdquo
Stephen Moorhouse General Manager and Vice President Supply
Chain at Coca-Cola Enterprises
Coca-Cola Enterprises 2013b About Coca-Cola Enterprises Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress
Company profile CCE is the third-largest independent Coca-Cola bottler and is the sole licensed bottler of The Coca-Cola Company products in the UK CCE employs around 4400 people across the United Kingdom It is already demonstrating considerable sustainability achievements in respect of its own operations CCErsquos manufacturing sites meet ISO14001 certification
CCE has reduced its energy use ratio across manufacturing
operations by 21 since 2001 and more than 99 of waste at its sites is now recovered or recycled and
CCE calculates and publishes CO2 emissions from manufacture and distribution
Future plans As a result of the latest supplier survey the role of technology as an enabler of sustainable solutions will be a key topic of discussion at CCErsquos broader Sustainability Innovation Summit in October 2013
References Coca-Cola Enterprises 2012 CCE Sets Carbon Reduction Plans with Key Suppliers at Annual Summit and Recognizes Outstanding Supplier Performance Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress Coca-Cola Enterprises 2013b About Coca-Cola Enterprises
Case studies
page 7
Resource efficient and sustainable buying Case Studies
The Co-operative Food achieved increased returns for growers and reduced waste throughout the supply chain by utilising 100 of its crop Through flexible product specifications and greater analysis of sizes and SKUs available a proportion of what once went to animal feed can now be sold to shoppers The Co-operative Food operates one of the UKrsquos largest farming networks growing wheat potatoes onions and strawberries For these and other produce which The Co-op buys almost 100 of the farmrsquos outputs can be used This has proven particularly beneficial given variability in climate conditions which have had significant impacts on production quality and on yields
The Co-op takes 100 of all potatoes grown on its farms Two packing facilities serve a range of customers with varying specifications dependant on whether itrsquos processers wholesalers discounters and retailers The benefits include a closer integration of the supply chain better provenance and reduced loss and waste For example Smaller potatoes can be removed from batches and sold as baby
roasters smaller still or blemished potatoes can be sold in value packs or used in ready meals
Larger potatoes can be sold on wholesale markets generally to foodservice businesses where they are cut and used in meal preparations
Through a producer organisation The Co-op ensures that 100 of strawberries grown have a market at the time of optimum ripeness Key Benefits
Effective whole crop buying policy makes use of up to 20 more of
the crop
Crop security in the supply chain reduces price shocks
More responsive to variability in growing conditions
Maximise revenue streams for the business
Produce goes through grading faster and can therefore have a longer
shelf-life reducing retail waste
Reduced distribution waste as market decisions are made faster
Consistent availability of products
Greater retailer control of sales price and promotions
Case studies
page 8
Resource efficient and sustainable buying Case Studies
Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 WRAP 2011 Fruit and vegetable resource maps
The buying policy also relies on there being a range customers or a product that can be ranged within one retailer as a whole product if they have the capacity to use loose (ie product as dug or harvested) and the capability to utilise huge variations in size weight and uniformity Alternatively the approach works well where there is a range of customers each with certain characteristics so that their specifications utilise the crop fully Company profile The Co-operative Food is a branch of the larger Co-operative Group It is the UKrsquos fifth biggest retailer with one of the UKrsquos largest farming operations and 2800 stores UK-wide The Co-operative Food employs over 74000 employees The Co-operative is already identified as an environmentally sensitive organisation ndash in 2012 it won the Tetra Pak Environmental Sustainability Award at the IGD Food Industry Awards for its work conserving farmland biodiversity References Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 The Co-operative Group 2013 The Co-operative Food The Grocer 2011 Bolland wages war on food waste levels WRAP 2011 Fruit and vegetable resource maps
Implementation Key steps taken Whole crop use has been implemented through the following three stages in the buying process 1 Linking producer organisations to bring farmers together who
produce the same crop They spread the risk of crop failure by varying conditions but still benefiting from centralised harvesting packing and marking of lower grade produce
2 Creating a whole crop buying programme to meet demand For example as only 80 of The Co-oprsquos potato demand can be procured through its farming network this additional capacity ensures that customer demand can be fully satisfied Incorporating whole crop buying into their existing producer organisation programme scales particularly well since The Co-operative already has the necessary systems in place to make decisions on crop streams quickly
3 Specifications are agreed with all businesses dependant on the crop Changes are constantly needed and flexibility is key as no one specification will be fit for purpose 52 weeks of the year
Key Lessons Although the buying process has become more streamlined the emphasis has shifted to in-field selection The Co-op look at the salad industry where pack-houses are fast approaching a thing of the past In field rigs are replacing pack-houses with the capability to make one pass in field grading and packing for multiple customers and specifications as they harvest directly to market
Case studies
page 9
Resource efficient and sustainable buying Case Studies
Wal-Mart Stores Inc (Walmart) parent company of ASDA in the UK is embarking on the huge task of addressing the emissions arising from its supply base which account for around 90 of overall emissions Walmart has set up a supplier Sustainability Index to rank suppliers on their performance encourage innovation in its supply chain and drive positive change at scale The index will eventually be implemented globally including in the UK Key achievements
Introduced a Sustainability Index for a supplier-based approach to
sustainability
Over 1000 suppliers have taken part in the Sustainability Index across
200 categories
Represents about 70 of the sales within the categories Walmart is
currently evaluating
Buyers now work directly with producers and suppliers to set goals to
reduce or eliminate food waste at each step of the supply chain ndash this
is an example of supplier innovation as a result of the Sustainability
Index
Identifying opportunities Walmart has identified the opportunity to assess suppliers more comprehensively after discerning that over 90 of its emissions occur in the supply chain The Sustainability Index is based on the work of The Sustainability Consortium which is delivering tools to measure evaluate and drive progress on the biggest sustainability opportunities across the lifecycle of products
ldquoWersquore really trying to accelerate the scale of sustainability innovation not just identify green niche productsrdquo
Jeff Rice Senior Director of Sustainability at Walmart
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability
Source
Case studies
page 10
Resource efficient and sustainable buying Case Studies
Implementation key steps taken Walmart began the immense task of assessing its 60000 suppliers in 2006 when it comprehensively surveyed its suppliersrsquo packaging impacts This was followed in 2009 by a 15-question survey and has now led to the development of the current Sustainability Index The index is implemented in the following way
The index is underpinned by robust environmental science provided
by The Sustainability Consortium (TSC) part-funded by the Walmart
Foundation Walmart has used TSCrsquos metrics to develop an index for
200 product categories and category scorecards to date and is
expanding to additional categories over time
Suppliers are contacted directly as and when their categories are
addressed by the expanding index
Scorecards are based around a self-assessed questionnaire and
suppliers are required to report twice yearly
Suppliers are ranked against peers in the same buying category with
a score of 1-100
Walmart buyers are being trained on the key sustainability issues in
their categories using the Category Sustainability Profiles developed
by TSC and they evaluate supplier performance against the biggest
challenges across the life cycle of their products
As of February 2013 every Walmart US and Samrsquos buyer merchant
and key global sourcing team now has performance objectives
dedicated to sustainability topics in their categories
Supplier scores and methods to improve them are discussed with
suppliers at regular intervals (eg buying meetings quarterly reviews
etc)
Key lessons Walmart learned valuable lessons through the process and are approaching the index in an iterative manner One of the key lessons learnt is that ranking or scoring of suppliers is critical to ensuring innovation and reduction of environmental impact in supplier behaviour Company profile Walmart is a large multinational retail chain based in the USA and is the worldrsquos third largest public corporation Walmart currently has 10800 stores in 27 countries with a customer base of 245 million Fiscal year sales in 2013 amounted to approximately US$466 billion Future plans The long term goal of the Sustainability Index is to design more sustainable products and to make Walmartrsquos global supply chain more socially and environmentally accountable and responsible It also aims to incentivise sustainability being a bigger part of day-to-day jobs By end of 2013 the Sustainability Index will cover approximately 70 of
sales By 2017 Walmart will buy 70 of goods for US stores from suppliers that
use the Sustainability Index References Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story Walmart 2013b Walmart Sustainability Index ndash Program Overview
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story
Case studies
page 11
Waste amp Resources Action Programme
The Old Academy 21 Horse Fair Banbury Oxon OX16 OAH
Tel 01295 819 900 Fax 01295 819 911 E-mail infowraporguk
Helpline free phone 0808 100 2040 wwwwraporguk
While steps have been taken to ensure its accuracy WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate incomplete or misleading This material is copyrighted It may be reproduced free of charge subject to the material being accurate and not used in a misleading context The source of the material must be identified and the copyright status acknowledged This material must not be used to endorse or used to suggest WRAPrsquos endorsement of a commercial product or service For more detail please refer to our Terms amp Conditions on our website - wwwwraporguk
For more information visit wwwwraporguk
Resource efficient and sustainable buying Case Studies
Key achievements The number of suppliers engaging in discussions is increasing (over
100 suppliers attended the 2012 Supplier Sustainability Summit and over 140 attended a similar webinar in 2013)
As part of CCErsquos lsquoCarbon Challengersquo introduced at the 2012 Supplier Sustainability Summit all CCE suppliers will implement a carbon measurement and management plan
CCE encourages supplier innovation to introduce sustainability throughout its supply chain and awarded the following suppliers for their work in 2012
Coca-Cola Enterprises Limited (CCE) is increasing its supplier engagement and collaboration on sustainability issues across its supply chain through the hosting of annual Supplier Sustainability Summits
Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress
Figure 4 Supplier activity
Case studies
page 5
Identifying opportunities CCE identified the opportunity to actively improve supplier relations by fostering and encouraging innovation in its supply chain that will ultimately contribute towards CCErsquos own sustainability targets Stephen Moorhouse General Manager and Vice President Supply Chain explains Implementation key steps taken CCE are achieving supplier collaboration and innovation through the following steps The SRM programme uses a robust scorecard process where each
supplier is measured against criteria in four areas quality service value and corporate responsibility and sustainability This performance is reviewed by the CCE Procurement Team and prizes and incentives are awarded to suppliers who demonstrate innovation and performance improvement
Resource efficient and sustainable buying Case Studies
ldquoOur vision is to become a low-carbon zero-waste business while inspiring a more sustainable tomorrow To do this we must look beyond minimising our own impact and towards collaboration with our suppliers across our value chain Recognizing outstanding performance and exploring innovative ways of working together at the Summit will collectively move us towards a future where we can grow our businesses but not our carbon footprintsldquo
The SRM programmer provides a formalised framework within which
to develop joint action plans and develop relationships
Inviting suppliers to a range of networking activities Supplier Sustainability Summits Supplier Innovation Summits Supplier Sustainability Webinars and Supplier Award Ceremonies and
Participants hear from international sustainability experts eg the
2012 Supplier Sustainability Summit hosted speakers from the Cambridge Programme for Sustainability Leadership International Business Leaders Forum and the Ashridge Business School
Key lessons A supplier survey in June 2013 identified the following insights for CCE (CCE 2013a) The main drivers of sustainability within CCE suppliers are Long-
term business viability (60) Energy cost savings (43) Customer preference (32) and
The following are most critical to driving sustainability progress in CCE suppliers Cost (40) and Technology (32)
For continued successful supplier engagement CCE will therefore have to focus on cost savings and the business case for introducing sustainability into supplier operations
Coca-Cola Enterprises 2012 CCE Sets Carbon Reduction Plans with Key Suppliers at Annual Summit and Recognizes Outstanding Supplier Performance
Case studies
page 6
Resource efficient and sustainable buying Case Studies
ldquoSuppliers recognise that sustainability is about long-term business benefits and cost savings as well as customer expectations ndash which is aligned with our own business case for sustainability as we look to create a low-carbon zero-waste future Sharing experiences and working together will help us grow our businesses whilst reducing our environmental impactrdquo
Stephen Moorhouse General Manager and Vice President Supply
Chain at Coca-Cola Enterprises
Coca-Cola Enterprises 2013b About Coca-Cola Enterprises Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress
Company profile CCE is the third-largest independent Coca-Cola bottler and is the sole licensed bottler of The Coca-Cola Company products in the UK CCE employs around 4400 people across the United Kingdom It is already demonstrating considerable sustainability achievements in respect of its own operations CCErsquos manufacturing sites meet ISO14001 certification
CCE has reduced its energy use ratio across manufacturing
operations by 21 since 2001 and more than 99 of waste at its sites is now recovered or recycled and
CCE calculates and publishes CO2 emissions from manufacture and distribution
Future plans As a result of the latest supplier survey the role of technology as an enabler of sustainable solutions will be a key topic of discussion at CCErsquos broader Sustainability Innovation Summit in October 2013
References Coca-Cola Enterprises 2012 CCE Sets Carbon Reduction Plans with Key Suppliers at Annual Summit and Recognizes Outstanding Supplier Performance Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress Coca-Cola Enterprises 2013b About Coca-Cola Enterprises
Case studies
page 7
Resource efficient and sustainable buying Case Studies
The Co-operative Food achieved increased returns for growers and reduced waste throughout the supply chain by utilising 100 of its crop Through flexible product specifications and greater analysis of sizes and SKUs available a proportion of what once went to animal feed can now be sold to shoppers The Co-operative Food operates one of the UKrsquos largest farming networks growing wheat potatoes onions and strawberries For these and other produce which The Co-op buys almost 100 of the farmrsquos outputs can be used This has proven particularly beneficial given variability in climate conditions which have had significant impacts on production quality and on yields
The Co-op takes 100 of all potatoes grown on its farms Two packing facilities serve a range of customers with varying specifications dependant on whether itrsquos processers wholesalers discounters and retailers The benefits include a closer integration of the supply chain better provenance and reduced loss and waste For example Smaller potatoes can be removed from batches and sold as baby
roasters smaller still or blemished potatoes can be sold in value packs or used in ready meals
Larger potatoes can be sold on wholesale markets generally to foodservice businesses where they are cut and used in meal preparations
Through a producer organisation The Co-op ensures that 100 of strawberries grown have a market at the time of optimum ripeness Key Benefits
Effective whole crop buying policy makes use of up to 20 more of
the crop
Crop security in the supply chain reduces price shocks
More responsive to variability in growing conditions
Maximise revenue streams for the business
Produce goes through grading faster and can therefore have a longer
shelf-life reducing retail waste
Reduced distribution waste as market decisions are made faster
Consistent availability of products
Greater retailer control of sales price and promotions
Case studies
page 8
Resource efficient and sustainable buying Case Studies
Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 WRAP 2011 Fruit and vegetable resource maps
The buying policy also relies on there being a range customers or a product that can be ranged within one retailer as a whole product if they have the capacity to use loose (ie product as dug or harvested) and the capability to utilise huge variations in size weight and uniformity Alternatively the approach works well where there is a range of customers each with certain characteristics so that their specifications utilise the crop fully Company profile The Co-operative Food is a branch of the larger Co-operative Group It is the UKrsquos fifth biggest retailer with one of the UKrsquos largest farming operations and 2800 stores UK-wide The Co-operative Food employs over 74000 employees The Co-operative is already identified as an environmentally sensitive organisation ndash in 2012 it won the Tetra Pak Environmental Sustainability Award at the IGD Food Industry Awards for its work conserving farmland biodiversity References Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 The Co-operative Group 2013 The Co-operative Food The Grocer 2011 Bolland wages war on food waste levels WRAP 2011 Fruit and vegetable resource maps
Implementation Key steps taken Whole crop use has been implemented through the following three stages in the buying process 1 Linking producer organisations to bring farmers together who
produce the same crop They spread the risk of crop failure by varying conditions but still benefiting from centralised harvesting packing and marking of lower grade produce
2 Creating a whole crop buying programme to meet demand For example as only 80 of The Co-oprsquos potato demand can be procured through its farming network this additional capacity ensures that customer demand can be fully satisfied Incorporating whole crop buying into their existing producer organisation programme scales particularly well since The Co-operative already has the necessary systems in place to make decisions on crop streams quickly
3 Specifications are agreed with all businesses dependant on the crop Changes are constantly needed and flexibility is key as no one specification will be fit for purpose 52 weeks of the year
Key Lessons Although the buying process has become more streamlined the emphasis has shifted to in-field selection The Co-op look at the salad industry where pack-houses are fast approaching a thing of the past In field rigs are replacing pack-houses with the capability to make one pass in field grading and packing for multiple customers and specifications as they harvest directly to market
Case studies
page 9
Resource efficient and sustainable buying Case Studies
Wal-Mart Stores Inc (Walmart) parent company of ASDA in the UK is embarking on the huge task of addressing the emissions arising from its supply base which account for around 90 of overall emissions Walmart has set up a supplier Sustainability Index to rank suppliers on their performance encourage innovation in its supply chain and drive positive change at scale The index will eventually be implemented globally including in the UK Key achievements
Introduced a Sustainability Index for a supplier-based approach to
sustainability
Over 1000 suppliers have taken part in the Sustainability Index across
200 categories
Represents about 70 of the sales within the categories Walmart is
currently evaluating
Buyers now work directly with producers and suppliers to set goals to
reduce or eliminate food waste at each step of the supply chain ndash this
is an example of supplier innovation as a result of the Sustainability
Index
Identifying opportunities Walmart has identified the opportunity to assess suppliers more comprehensively after discerning that over 90 of its emissions occur in the supply chain The Sustainability Index is based on the work of The Sustainability Consortium which is delivering tools to measure evaluate and drive progress on the biggest sustainability opportunities across the lifecycle of products
ldquoWersquore really trying to accelerate the scale of sustainability innovation not just identify green niche productsrdquo
Jeff Rice Senior Director of Sustainability at Walmart
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability
Source
Case studies
page 10
Resource efficient and sustainable buying Case Studies
Implementation key steps taken Walmart began the immense task of assessing its 60000 suppliers in 2006 when it comprehensively surveyed its suppliersrsquo packaging impacts This was followed in 2009 by a 15-question survey and has now led to the development of the current Sustainability Index The index is implemented in the following way
The index is underpinned by robust environmental science provided
by The Sustainability Consortium (TSC) part-funded by the Walmart
Foundation Walmart has used TSCrsquos metrics to develop an index for
200 product categories and category scorecards to date and is
expanding to additional categories over time
Suppliers are contacted directly as and when their categories are
addressed by the expanding index
Scorecards are based around a self-assessed questionnaire and
suppliers are required to report twice yearly
Suppliers are ranked against peers in the same buying category with
a score of 1-100
Walmart buyers are being trained on the key sustainability issues in
their categories using the Category Sustainability Profiles developed
by TSC and they evaluate supplier performance against the biggest
challenges across the life cycle of their products
As of February 2013 every Walmart US and Samrsquos buyer merchant
and key global sourcing team now has performance objectives
dedicated to sustainability topics in their categories
Supplier scores and methods to improve them are discussed with
suppliers at regular intervals (eg buying meetings quarterly reviews
etc)
Key lessons Walmart learned valuable lessons through the process and are approaching the index in an iterative manner One of the key lessons learnt is that ranking or scoring of suppliers is critical to ensuring innovation and reduction of environmental impact in supplier behaviour Company profile Walmart is a large multinational retail chain based in the USA and is the worldrsquos third largest public corporation Walmart currently has 10800 stores in 27 countries with a customer base of 245 million Fiscal year sales in 2013 amounted to approximately US$466 billion Future plans The long term goal of the Sustainability Index is to design more sustainable products and to make Walmartrsquos global supply chain more socially and environmentally accountable and responsible It also aims to incentivise sustainability being a bigger part of day-to-day jobs By end of 2013 the Sustainability Index will cover approximately 70 of
sales By 2017 Walmart will buy 70 of goods for US stores from suppliers that
use the Sustainability Index References Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story Walmart 2013b Walmart Sustainability Index ndash Program Overview
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story
Case studies
page 11
Waste amp Resources Action Programme
The Old Academy 21 Horse Fair Banbury Oxon OX16 OAH
Tel 01295 819 900 Fax 01295 819 911 E-mail infowraporguk
Helpline free phone 0808 100 2040 wwwwraporguk
While steps have been taken to ensure its accuracy WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate incomplete or misleading This material is copyrighted It may be reproduced free of charge subject to the material being accurate and not used in a misleading context The source of the material must be identified and the copyright status acknowledged This material must not be used to endorse or used to suggest WRAPrsquos endorsement of a commercial product or service For more detail please refer to our Terms amp Conditions on our website - wwwwraporguk
For more information visit wwwwraporguk
Identifying opportunities CCE identified the opportunity to actively improve supplier relations by fostering and encouraging innovation in its supply chain that will ultimately contribute towards CCErsquos own sustainability targets Stephen Moorhouse General Manager and Vice President Supply Chain explains Implementation key steps taken CCE are achieving supplier collaboration and innovation through the following steps The SRM programme uses a robust scorecard process where each
supplier is measured against criteria in four areas quality service value and corporate responsibility and sustainability This performance is reviewed by the CCE Procurement Team and prizes and incentives are awarded to suppliers who demonstrate innovation and performance improvement
Resource efficient and sustainable buying Case Studies
ldquoOur vision is to become a low-carbon zero-waste business while inspiring a more sustainable tomorrow To do this we must look beyond minimising our own impact and towards collaboration with our suppliers across our value chain Recognizing outstanding performance and exploring innovative ways of working together at the Summit will collectively move us towards a future where we can grow our businesses but not our carbon footprintsldquo
The SRM programmer provides a formalised framework within which
to develop joint action plans and develop relationships
Inviting suppliers to a range of networking activities Supplier Sustainability Summits Supplier Innovation Summits Supplier Sustainability Webinars and Supplier Award Ceremonies and
Participants hear from international sustainability experts eg the
2012 Supplier Sustainability Summit hosted speakers from the Cambridge Programme for Sustainability Leadership International Business Leaders Forum and the Ashridge Business School
Key lessons A supplier survey in June 2013 identified the following insights for CCE (CCE 2013a) The main drivers of sustainability within CCE suppliers are Long-
term business viability (60) Energy cost savings (43) Customer preference (32) and
The following are most critical to driving sustainability progress in CCE suppliers Cost (40) and Technology (32)
For continued successful supplier engagement CCE will therefore have to focus on cost savings and the business case for introducing sustainability into supplier operations
Coca-Cola Enterprises 2012 CCE Sets Carbon Reduction Plans with Key Suppliers at Annual Summit and Recognizes Outstanding Supplier Performance
Case studies
page 6
Resource efficient and sustainable buying Case Studies
ldquoSuppliers recognise that sustainability is about long-term business benefits and cost savings as well as customer expectations ndash which is aligned with our own business case for sustainability as we look to create a low-carbon zero-waste future Sharing experiences and working together will help us grow our businesses whilst reducing our environmental impactrdquo
Stephen Moorhouse General Manager and Vice President Supply
Chain at Coca-Cola Enterprises
Coca-Cola Enterprises 2013b About Coca-Cola Enterprises Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress
Company profile CCE is the third-largest independent Coca-Cola bottler and is the sole licensed bottler of The Coca-Cola Company products in the UK CCE employs around 4400 people across the United Kingdom It is already demonstrating considerable sustainability achievements in respect of its own operations CCErsquos manufacturing sites meet ISO14001 certification
CCE has reduced its energy use ratio across manufacturing
operations by 21 since 2001 and more than 99 of waste at its sites is now recovered or recycled and
CCE calculates and publishes CO2 emissions from manufacture and distribution
Future plans As a result of the latest supplier survey the role of technology as an enabler of sustainable solutions will be a key topic of discussion at CCErsquos broader Sustainability Innovation Summit in October 2013
References Coca-Cola Enterprises 2012 CCE Sets Carbon Reduction Plans with Key Suppliers at Annual Summit and Recognizes Outstanding Supplier Performance Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress Coca-Cola Enterprises 2013b About Coca-Cola Enterprises
Case studies
page 7
Resource efficient and sustainable buying Case Studies
The Co-operative Food achieved increased returns for growers and reduced waste throughout the supply chain by utilising 100 of its crop Through flexible product specifications and greater analysis of sizes and SKUs available a proportion of what once went to animal feed can now be sold to shoppers The Co-operative Food operates one of the UKrsquos largest farming networks growing wheat potatoes onions and strawberries For these and other produce which The Co-op buys almost 100 of the farmrsquos outputs can be used This has proven particularly beneficial given variability in climate conditions which have had significant impacts on production quality and on yields
The Co-op takes 100 of all potatoes grown on its farms Two packing facilities serve a range of customers with varying specifications dependant on whether itrsquos processers wholesalers discounters and retailers The benefits include a closer integration of the supply chain better provenance and reduced loss and waste For example Smaller potatoes can be removed from batches and sold as baby
roasters smaller still or blemished potatoes can be sold in value packs or used in ready meals
Larger potatoes can be sold on wholesale markets generally to foodservice businesses where they are cut and used in meal preparations
Through a producer organisation The Co-op ensures that 100 of strawberries grown have a market at the time of optimum ripeness Key Benefits
Effective whole crop buying policy makes use of up to 20 more of
the crop
Crop security in the supply chain reduces price shocks
More responsive to variability in growing conditions
Maximise revenue streams for the business
Produce goes through grading faster and can therefore have a longer
shelf-life reducing retail waste
Reduced distribution waste as market decisions are made faster
Consistent availability of products
Greater retailer control of sales price and promotions
Case studies
page 8
Resource efficient and sustainable buying Case Studies
Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 WRAP 2011 Fruit and vegetable resource maps
The buying policy also relies on there being a range customers or a product that can be ranged within one retailer as a whole product if they have the capacity to use loose (ie product as dug or harvested) and the capability to utilise huge variations in size weight and uniformity Alternatively the approach works well where there is a range of customers each with certain characteristics so that their specifications utilise the crop fully Company profile The Co-operative Food is a branch of the larger Co-operative Group It is the UKrsquos fifth biggest retailer with one of the UKrsquos largest farming operations and 2800 stores UK-wide The Co-operative Food employs over 74000 employees The Co-operative is already identified as an environmentally sensitive organisation ndash in 2012 it won the Tetra Pak Environmental Sustainability Award at the IGD Food Industry Awards for its work conserving farmland biodiversity References Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 The Co-operative Group 2013 The Co-operative Food The Grocer 2011 Bolland wages war on food waste levels WRAP 2011 Fruit and vegetable resource maps
Implementation Key steps taken Whole crop use has been implemented through the following three stages in the buying process 1 Linking producer organisations to bring farmers together who
produce the same crop They spread the risk of crop failure by varying conditions but still benefiting from centralised harvesting packing and marking of lower grade produce
2 Creating a whole crop buying programme to meet demand For example as only 80 of The Co-oprsquos potato demand can be procured through its farming network this additional capacity ensures that customer demand can be fully satisfied Incorporating whole crop buying into their existing producer organisation programme scales particularly well since The Co-operative already has the necessary systems in place to make decisions on crop streams quickly
3 Specifications are agreed with all businesses dependant on the crop Changes are constantly needed and flexibility is key as no one specification will be fit for purpose 52 weeks of the year
Key Lessons Although the buying process has become more streamlined the emphasis has shifted to in-field selection The Co-op look at the salad industry where pack-houses are fast approaching a thing of the past In field rigs are replacing pack-houses with the capability to make one pass in field grading and packing for multiple customers and specifications as they harvest directly to market
Case studies
page 9
Resource efficient and sustainable buying Case Studies
Wal-Mart Stores Inc (Walmart) parent company of ASDA in the UK is embarking on the huge task of addressing the emissions arising from its supply base which account for around 90 of overall emissions Walmart has set up a supplier Sustainability Index to rank suppliers on their performance encourage innovation in its supply chain and drive positive change at scale The index will eventually be implemented globally including in the UK Key achievements
Introduced a Sustainability Index for a supplier-based approach to
sustainability
Over 1000 suppliers have taken part in the Sustainability Index across
200 categories
Represents about 70 of the sales within the categories Walmart is
currently evaluating
Buyers now work directly with producers and suppliers to set goals to
reduce or eliminate food waste at each step of the supply chain ndash this
is an example of supplier innovation as a result of the Sustainability
Index
Identifying opportunities Walmart has identified the opportunity to assess suppliers more comprehensively after discerning that over 90 of its emissions occur in the supply chain The Sustainability Index is based on the work of The Sustainability Consortium which is delivering tools to measure evaluate and drive progress on the biggest sustainability opportunities across the lifecycle of products
ldquoWersquore really trying to accelerate the scale of sustainability innovation not just identify green niche productsrdquo
Jeff Rice Senior Director of Sustainability at Walmart
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability
Source
Case studies
page 10
Resource efficient and sustainable buying Case Studies
Implementation key steps taken Walmart began the immense task of assessing its 60000 suppliers in 2006 when it comprehensively surveyed its suppliersrsquo packaging impacts This was followed in 2009 by a 15-question survey and has now led to the development of the current Sustainability Index The index is implemented in the following way
The index is underpinned by robust environmental science provided
by The Sustainability Consortium (TSC) part-funded by the Walmart
Foundation Walmart has used TSCrsquos metrics to develop an index for
200 product categories and category scorecards to date and is
expanding to additional categories over time
Suppliers are contacted directly as and when their categories are
addressed by the expanding index
Scorecards are based around a self-assessed questionnaire and
suppliers are required to report twice yearly
Suppliers are ranked against peers in the same buying category with
a score of 1-100
Walmart buyers are being trained on the key sustainability issues in
their categories using the Category Sustainability Profiles developed
by TSC and they evaluate supplier performance against the biggest
challenges across the life cycle of their products
As of February 2013 every Walmart US and Samrsquos buyer merchant
and key global sourcing team now has performance objectives
dedicated to sustainability topics in their categories
Supplier scores and methods to improve them are discussed with
suppliers at regular intervals (eg buying meetings quarterly reviews
etc)
Key lessons Walmart learned valuable lessons through the process and are approaching the index in an iterative manner One of the key lessons learnt is that ranking or scoring of suppliers is critical to ensuring innovation and reduction of environmental impact in supplier behaviour Company profile Walmart is a large multinational retail chain based in the USA and is the worldrsquos third largest public corporation Walmart currently has 10800 stores in 27 countries with a customer base of 245 million Fiscal year sales in 2013 amounted to approximately US$466 billion Future plans The long term goal of the Sustainability Index is to design more sustainable products and to make Walmartrsquos global supply chain more socially and environmentally accountable and responsible It also aims to incentivise sustainability being a bigger part of day-to-day jobs By end of 2013 the Sustainability Index will cover approximately 70 of
sales By 2017 Walmart will buy 70 of goods for US stores from suppliers that
use the Sustainability Index References Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story Walmart 2013b Walmart Sustainability Index ndash Program Overview
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story
Case studies
page 11
Waste amp Resources Action Programme
The Old Academy 21 Horse Fair Banbury Oxon OX16 OAH
Tel 01295 819 900 Fax 01295 819 911 E-mail infowraporguk
Helpline free phone 0808 100 2040 wwwwraporguk
While steps have been taken to ensure its accuracy WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate incomplete or misleading This material is copyrighted It may be reproduced free of charge subject to the material being accurate and not used in a misleading context The source of the material must be identified and the copyright status acknowledged This material must not be used to endorse or used to suggest WRAPrsquos endorsement of a commercial product or service For more detail please refer to our Terms amp Conditions on our website - wwwwraporguk
For more information visit wwwwraporguk
Resource efficient and sustainable buying Case Studies
ldquoSuppliers recognise that sustainability is about long-term business benefits and cost savings as well as customer expectations ndash which is aligned with our own business case for sustainability as we look to create a low-carbon zero-waste future Sharing experiences and working together will help us grow our businesses whilst reducing our environmental impactrdquo
Stephen Moorhouse General Manager and Vice President Supply
Chain at Coca-Cola Enterprises
Coca-Cola Enterprises 2013b About Coca-Cola Enterprises Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress
Company profile CCE is the third-largest independent Coca-Cola bottler and is the sole licensed bottler of The Coca-Cola Company products in the UK CCE employs around 4400 people across the United Kingdom It is already demonstrating considerable sustainability achievements in respect of its own operations CCErsquos manufacturing sites meet ISO14001 certification
CCE has reduced its energy use ratio across manufacturing
operations by 21 since 2001 and more than 99 of waste at its sites is now recovered or recycled and
CCE calculates and publishes CO2 emissions from manufacture and distribution
Future plans As a result of the latest supplier survey the role of technology as an enabler of sustainable solutions will be a key topic of discussion at CCErsquos broader Sustainability Innovation Summit in October 2013
References Coca-Cola Enterprises 2012 CCE Sets Carbon Reduction Plans with Key Suppliers at Annual Summit and Recognizes Outstanding Supplier Performance Coca-Cola Enterprises 2013a Coca-Cola Enterprises suppliers identify technology as critical to achieving sustainability progress Coca-Cola Enterprises 2013b About Coca-Cola Enterprises
Case studies
page 7
Resource efficient and sustainable buying Case Studies
The Co-operative Food achieved increased returns for growers and reduced waste throughout the supply chain by utilising 100 of its crop Through flexible product specifications and greater analysis of sizes and SKUs available a proportion of what once went to animal feed can now be sold to shoppers The Co-operative Food operates one of the UKrsquos largest farming networks growing wheat potatoes onions and strawberries For these and other produce which The Co-op buys almost 100 of the farmrsquos outputs can be used This has proven particularly beneficial given variability in climate conditions which have had significant impacts on production quality and on yields
The Co-op takes 100 of all potatoes grown on its farms Two packing facilities serve a range of customers with varying specifications dependant on whether itrsquos processers wholesalers discounters and retailers The benefits include a closer integration of the supply chain better provenance and reduced loss and waste For example Smaller potatoes can be removed from batches and sold as baby
roasters smaller still or blemished potatoes can be sold in value packs or used in ready meals
Larger potatoes can be sold on wholesale markets generally to foodservice businesses where they are cut and used in meal preparations
Through a producer organisation The Co-op ensures that 100 of strawberries grown have a market at the time of optimum ripeness Key Benefits
Effective whole crop buying policy makes use of up to 20 more of
the crop
Crop security in the supply chain reduces price shocks
More responsive to variability in growing conditions
Maximise revenue streams for the business
Produce goes through grading faster and can therefore have a longer
shelf-life reducing retail waste
Reduced distribution waste as market decisions are made faster
Consistent availability of products
Greater retailer control of sales price and promotions
Case studies
page 8
Resource efficient and sustainable buying Case Studies
Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 WRAP 2011 Fruit and vegetable resource maps
The buying policy also relies on there being a range customers or a product that can be ranged within one retailer as a whole product if they have the capacity to use loose (ie product as dug or harvested) and the capability to utilise huge variations in size weight and uniformity Alternatively the approach works well where there is a range of customers each with certain characteristics so that their specifications utilise the crop fully Company profile The Co-operative Food is a branch of the larger Co-operative Group It is the UKrsquos fifth biggest retailer with one of the UKrsquos largest farming operations and 2800 stores UK-wide The Co-operative Food employs over 74000 employees The Co-operative is already identified as an environmentally sensitive organisation ndash in 2012 it won the Tetra Pak Environmental Sustainability Award at the IGD Food Industry Awards for its work conserving farmland biodiversity References Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 The Co-operative Group 2013 The Co-operative Food The Grocer 2011 Bolland wages war on food waste levels WRAP 2011 Fruit and vegetable resource maps
Implementation Key steps taken Whole crop use has been implemented through the following three stages in the buying process 1 Linking producer organisations to bring farmers together who
produce the same crop They spread the risk of crop failure by varying conditions but still benefiting from centralised harvesting packing and marking of lower grade produce
2 Creating a whole crop buying programme to meet demand For example as only 80 of The Co-oprsquos potato demand can be procured through its farming network this additional capacity ensures that customer demand can be fully satisfied Incorporating whole crop buying into their existing producer organisation programme scales particularly well since The Co-operative already has the necessary systems in place to make decisions on crop streams quickly
3 Specifications are agreed with all businesses dependant on the crop Changes are constantly needed and flexibility is key as no one specification will be fit for purpose 52 weeks of the year
Key Lessons Although the buying process has become more streamlined the emphasis has shifted to in-field selection The Co-op look at the salad industry where pack-houses are fast approaching a thing of the past In field rigs are replacing pack-houses with the capability to make one pass in field grading and packing for multiple customers and specifications as they harvest directly to market
Case studies
page 9
Resource efficient and sustainable buying Case Studies
Wal-Mart Stores Inc (Walmart) parent company of ASDA in the UK is embarking on the huge task of addressing the emissions arising from its supply base which account for around 90 of overall emissions Walmart has set up a supplier Sustainability Index to rank suppliers on their performance encourage innovation in its supply chain and drive positive change at scale The index will eventually be implemented globally including in the UK Key achievements
Introduced a Sustainability Index for a supplier-based approach to
sustainability
Over 1000 suppliers have taken part in the Sustainability Index across
200 categories
Represents about 70 of the sales within the categories Walmart is
currently evaluating
Buyers now work directly with producers and suppliers to set goals to
reduce or eliminate food waste at each step of the supply chain ndash this
is an example of supplier innovation as a result of the Sustainability
Index
Identifying opportunities Walmart has identified the opportunity to assess suppliers more comprehensively after discerning that over 90 of its emissions occur in the supply chain The Sustainability Index is based on the work of The Sustainability Consortium which is delivering tools to measure evaluate and drive progress on the biggest sustainability opportunities across the lifecycle of products
ldquoWersquore really trying to accelerate the scale of sustainability innovation not just identify green niche productsrdquo
Jeff Rice Senior Director of Sustainability at Walmart
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability
Source
Case studies
page 10
Resource efficient and sustainable buying Case Studies
Implementation key steps taken Walmart began the immense task of assessing its 60000 suppliers in 2006 when it comprehensively surveyed its suppliersrsquo packaging impacts This was followed in 2009 by a 15-question survey and has now led to the development of the current Sustainability Index The index is implemented in the following way
The index is underpinned by robust environmental science provided
by The Sustainability Consortium (TSC) part-funded by the Walmart
Foundation Walmart has used TSCrsquos metrics to develop an index for
200 product categories and category scorecards to date and is
expanding to additional categories over time
Suppliers are contacted directly as and when their categories are
addressed by the expanding index
Scorecards are based around a self-assessed questionnaire and
suppliers are required to report twice yearly
Suppliers are ranked against peers in the same buying category with
a score of 1-100
Walmart buyers are being trained on the key sustainability issues in
their categories using the Category Sustainability Profiles developed
by TSC and they evaluate supplier performance against the biggest
challenges across the life cycle of their products
As of February 2013 every Walmart US and Samrsquos buyer merchant
and key global sourcing team now has performance objectives
dedicated to sustainability topics in their categories
Supplier scores and methods to improve them are discussed with
suppliers at regular intervals (eg buying meetings quarterly reviews
etc)
Key lessons Walmart learned valuable lessons through the process and are approaching the index in an iterative manner One of the key lessons learnt is that ranking or scoring of suppliers is critical to ensuring innovation and reduction of environmental impact in supplier behaviour Company profile Walmart is a large multinational retail chain based in the USA and is the worldrsquos third largest public corporation Walmart currently has 10800 stores in 27 countries with a customer base of 245 million Fiscal year sales in 2013 amounted to approximately US$466 billion Future plans The long term goal of the Sustainability Index is to design more sustainable products and to make Walmartrsquos global supply chain more socially and environmentally accountable and responsible It also aims to incentivise sustainability being a bigger part of day-to-day jobs By end of 2013 the Sustainability Index will cover approximately 70 of
sales By 2017 Walmart will buy 70 of goods for US stores from suppliers that
use the Sustainability Index References Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story Walmart 2013b Walmart Sustainability Index ndash Program Overview
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story
Case studies
page 11
Waste amp Resources Action Programme
The Old Academy 21 Horse Fair Banbury Oxon OX16 OAH
Tel 01295 819 900 Fax 01295 819 911 E-mail infowraporguk
Helpline free phone 0808 100 2040 wwwwraporguk
While steps have been taken to ensure its accuracy WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate incomplete or misleading This material is copyrighted It may be reproduced free of charge subject to the material being accurate and not used in a misleading context The source of the material must be identified and the copyright status acknowledged This material must not be used to endorse or used to suggest WRAPrsquos endorsement of a commercial product or service For more detail please refer to our Terms amp Conditions on our website - wwwwraporguk
For more information visit wwwwraporguk
Resource efficient and sustainable buying Case Studies
The Co-operative Food achieved increased returns for growers and reduced waste throughout the supply chain by utilising 100 of its crop Through flexible product specifications and greater analysis of sizes and SKUs available a proportion of what once went to animal feed can now be sold to shoppers The Co-operative Food operates one of the UKrsquos largest farming networks growing wheat potatoes onions and strawberries For these and other produce which The Co-op buys almost 100 of the farmrsquos outputs can be used This has proven particularly beneficial given variability in climate conditions which have had significant impacts on production quality and on yields
The Co-op takes 100 of all potatoes grown on its farms Two packing facilities serve a range of customers with varying specifications dependant on whether itrsquos processers wholesalers discounters and retailers The benefits include a closer integration of the supply chain better provenance and reduced loss and waste For example Smaller potatoes can be removed from batches and sold as baby
roasters smaller still or blemished potatoes can be sold in value packs or used in ready meals
Larger potatoes can be sold on wholesale markets generally to foodservice businesses where they are cut and used in meal preparations
Through a producer organisation The Co-op ensures that 100 of strawberries grown have a market at the time of optimum ripeness Key Benefits
Effective whole crop buying policy makes use of up to 20 more of
the crop
Crop security in the supply chain reduces price shocks
More responsive to variability in growing conditions
Maximise revenue streams for the business
Produce goes through grading faster and can therefore have a longer
shelf-life reducing retail waste
Reduced distribution waste as market decisions are made faster
Consistent availability of products
Greater retailer control of sales price and promotions
Case studies
page 8
Resource efficient and sustainable buying Case Studies
Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 WRAP 2011 Fruit and vegetable resource maps
The buying policy also relies on there being a range customers or a product that can be ranged within one retailer as a whole product if they have the capacity to use loose (ie product as dug or harvested) and the capability to utilise huge variations in size weight and uniformity Alternatively the approach works well where there is a range of customers each with certain characteristics so that their specifications utilise the crop fully Company profile The Co-operative Food is a branch of the larger Co-operative Group It is the UKrsquos fifth biggest retailer with one of the UKrsquos largest farming operations and 2800 stores UK-wide The Co-operative Food employs over 74000 employees The Co-operative is already identified as an environmentally sensitive organisation ndash in 2012 it won the Tetra Pak Environmental Sustainability Award at the IGD Food Industry Awards for its work conserving farmland biodiversity References Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 The Co-operative Group 2013 The Co-operative Food The Grocer 2011 Bolland wages war on food waste levels WRAP 2011 Fruit and vegetable resource maps
Implementation Key steps taken Whole crop use has been implemented through the following three stages in the buying process 1 Linking producer organisations to bring farmers together who
produce the same crop They spread the risk of crop failure by varying conditions but still benefiting from centralised harvesting packing and marking of lower grade produce
2 Creating a whole crop buying programme to meet demand For example as only 80 of The Co-oprsquos potato demand can be procured through its farming network this additional capacity ensures that customer demand can be fully satisfied Incorporating whole crop buying into their existing producer organisation programme scales particularly well since The Co-operative already has the necessary systems in place to make decisions on crop streams quickly
3 Specifications are agreed with all businesses dependant on the crop Changes are constantly needed and flexibility is key as no one specification will be fit for purpose 52 weeks of the year
Key Lessons Although the buying process has become more streamlined the emphasis has shifted to in-field selection The Co-op look at the salad industry where pack-houses are fast approaching a thing of the past In field rigs are replacing pack-houses with the capability to make one pass in field grading and packing for multiple customers and specifications as they harvest directly to market
Case studies
page 9
Resource efficient and sustainable buying Case Studies
Wal-Mart Stores Inc (Walmart) parent company of ASDA in the UK is embarking on the huge task of addressing the emissions arising from its supply base which account for around 90 of overall emissions Walmart has set up a supplier Sustainability Index to rank suppliers on their performance encourage innovation in its supply chain and drive positive change at scale The index will eventually be implemented globally including in the UK Key achievements
Introduced a Sustainability Index for a supplier-based approach to
sustainability
Over 1000 suppliers have taken part in the Sustainability Index across
200 categories
Represents about 70 of the sales within the categories Walmart is
currently evaluating
Buyers now work directly with producers and suppliers to set goals to
reduce or eliminate food waste at each step of the supply chain ndash this
is an example of supplier innovation as a result of the Sustainability
Index
Identifying opportunities Walmart has identified the opportunity to assess suppliers more comprehensively after discerning that over 90 of its emissions occur in the supply chain The Sustainability Index is based on the work of The Sustainability Consortium which is delivering tools to measure evaluate and drive progress on the biggest sustainability opportunities across the lifecycle of products
ldquoWersquore really trying to accelerate the scale of sustainability innovation not just identify green niche productsrdquo
Jeff Rice Senior Director of Sustainability at Walmart
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability
Source
Case studies
page 10
Resource efficient and sustainable buying Case Studies
Implementation key steps taken Walmart began the immense task of assessing its 60000 suppliers in 2006 when it comprehensively surveyed its suppliersrsquo packaging impacts This was followed in 2009 by a 15-question survey and has now led to the development of the current Sustainability Index The index is implemented in the following way
The index is underpinned by robust environmental science provided
by The Sustainability Consortium (TSC) part-funded by the Walmart
Foundation Walmart has used TSCrsquos metrics to develop an index for
200 product categories and category scorecards to date and is
expanding to additional categories over time
Suppliers are contacted directly as and when their categories are
addressed by the expanding index
Scorecards are based around a self-assessed questionnaire and
suppliers are required to report twice yearly
Suppliers are ranked against peers in the same buying category with
a score of 1-100
Walmart buyers are being trained on the key sustainability issues in
their categories using the Category Sustainability Profiles developed
by TSC and they evaluate supplier performance against the biggest
challenges across the life cycle of their products
As of February 2013 every Walmart US and Samrsquos buyer merchant
and key global sourcing team now has performance objectives
dedicated to sustainability topics in their categories
Supplier scores and methods to improve them are discussed with
suppliers at regular intervals (eg buying meetings quarterly reviews
etc)
Key lessons Walmart learned valuable lessons through the process and are approaching the index in an iterative manner One of the key lessons learnt is that ranking or scoring of suppliers is critical to ensuring innovation and reduction of environmental impact in supplier behaviour Company profile Walmart is a large multinational retail chain based in the USA and is the worldrsquos third largest public corporation Walmart currently has 10800 stores in 27 countries with a customer base of 245 million Fiscal year sales in 2013 amounted to approximately US$466 billion Future plans The long term goal of the Sustainability Index is to design more sustainable products and to make Walmartrsquos global supply chain more socially and environmentally accountable and responsible It also aims to incentivise sustainability being a bigger part of day-to-day jobs By end of 2013 the Sustainability Index will cover approximately 70 of
sales By 2017 Walmart will buy 70 of goods for US stores from suppliers that
use the Sustainability Index References Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story Walmart 2013b Walmart Sustainability Index ndash Program Overview
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story
Case studies
page 11
Waste amp Resources Action Programme
The Old Academy 21 Horse Fair Banbury Oxon OX16 OAH
Tel 01295 819 900 Fax 01295 819 911 E-mail infowraporguk
Helpline free phone 0808 100 2040 wwwwraporguk
While steps have been taken to ensure its accuracy WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate incomplete or misleading This material is copyrighted It may be reproduced free of charge subject to the material being accurate and not used in a misleading context The source of the material must be identified and the copyright status acknowledged This material must not be used to endorse or used to suggest WRAPrsquos endorsement of a commercial product or service For more detail please refer to our Terms amp Conditions on our website - wwwwraporguk
For more information visit wwwwraporguk
Resource efficient and sustainable buying Case Studies
Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 WRAP 2011 Fruit and vegetable resource maps
The buying policy also relies on there being a range customers or a product that can be ranged within one retailer as a whole product if they have the capacity to use loose (ie product as dug or harvested) and the capability to utilise huge variations in size weight and uniformity Alternatively the approach works well where there is a range of customers each with certain characteristics so that their specifications utilise the crop fully Company profile The Co-operative Food is a branch of the larger Co-operative Group It is the UKrsquos fifth biggest retailer with one of the UKrsquos largest farming operations and 2800 stores UK-wide The Co-operative Food employs over 74000 employees The Co-operative is already identified as an environmentally sensitive organisation ndash in 2012 it won the Tetra Pak Environmental Sustainability Award at the IGD Food Industry Awards for its work conserving farmland biodiversity References Morrisons 2011 Today Taking Good Care for Tomorrow Corporate Responsibility Review 20102011 The Co-operative Group 2013 The Co-operative Food The Grocer 2011 Bolland wages war on food waste levels WRAP 2011 Fruit and vegetable resource maps
Implementation Key steps taken Whole crop use has been implemented through the following three stages in the buying process 1 Linking producer organisations to bring farmers together who
produce the same crop They spread the risk of crop failure by varying conditions but still benefiting from centralised harvesting packing and marking of lower grade produce
2 Creating a whole crop buying programme to meet demand For example as only 80 of The Co-oprsquos potato demand can be procured through its farming network this additional capacity ensures that customer demand can be fully satisfied Incorporating whole crop buying into their existing producer organisation programme scales particularly well since The Co-operative already has the necessary systems in place to make decisions on crop streams quickly
3 Specifications are agreed with all businesses dependant on the crop Changes are constantly needed and flexibility is key as no one specification will be fit for purpose 52 weeks of the year
Key Lessons Although the buying process has become more streamlined the emphasis has shifted to in-field selection The Co-op look at the salad industry where pack-houses are fast approaching a thing of the past In field rigs are replacing pack-houses with the capability to make one pass in field grading and packing for multiple customers and specifications as they harvest directly to market
Case studies
page 9
Resource efficient and sustainable buying Case Studies
Wal-Mart Stores Inc (Walmart) parent company of ASDA in the UK is embarking on the huge task of addressing the emissions arising from its supply base which account for around 90 of overall emissions Walmart has set up a supplier Sustainability Index to rank suppliers on their performance encourage innovation in its supply chain and drive positive change at scale The index will eventually be implemented globally including in the UK Key achievements
Introduced a Sustainability Index for a supplier-based approach to
sustainability
Over 1000 suppliers have taken part in the Sustainability Index across
200 categories
Represents about 70 of the sales within the categories Walmart is
currently evaluating
Buyers now work directly with producers and suppliers to set goals to
reduce or eliminate food waste at each step of the supply chain ndash this
is an example of supplier innovation as a result of the Sustainability
Index
Identifying opportunities Walmart has identified the opportunity to assess suppliers more comprehensively after discerning that over 90 of its emissions occur in the supply chain The Sustainability Index is based on the work of The Sustainability Consortium which is delivering tools to measure evaluate and drive progress on the biggest sustainability opportunities across the lifecycle of products
ldquoWersquore really trying to accelerate the scale of sustainability innovation not just identify green niche productsrdquo
Jeff Rice Senior Director of Sustainability at Walmart
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability
Source
Case studies
page 10
Resource efficient and sustainable buying Case Studies
Implementation key steps taken Walmart began the immense task of assessing its 60000 suppliers in 2006 when it comprehensively surveyed its suppliersrsquo packaging impacts This was followed in 2009 by a 15-question survey and has now led to the development of the current Sustainability Index The index is implemented in the following way
The index is underpinned by robust environmental science provided
by The Sustainability Consortium (TSC) part-funded by the Walmart
Foundation Walmart has used TSCrsquos metrics to develop an index for
200 product categories and category scorecards to date and is
expanding to additional categories over time
Suppliers are contacted directly as and when their categories are
addressed by the expanding index
Scorecards are based around a self-assessed questionnaire and
suppliers are required to report twice yearly
Suppliers are ranked against peers in the same buying category with
a score of 1-100
Walmart buyers are being trained on the key sustainability issues in
their categories using the Category Sustainability Profiles developed
by TSC and they evaluate supplier performance against the biggest
challenges across the life cycle of their products
As of February 2013 every Walmart US and Samrsquos buyer merchant
and key global sourcing team now has performance objectives
dedicated to sustainability topics in their categories
Supplier scores and methods to improve them are discussed with
suppliers at regular intervals (eg buying meetings quarterly reviews
etc)
Key lessons Walmart learned valuable lessons through the process and are approaching the index in an iterative manner One of the key lessons learnt is that ranking or scoring of suppliers is critical to ensuring innovation and reduction of environmental impact in supplier behaviour Company profile Walmart is a large multinational retail chain based in the USA and is the worldrsquos third largest public corporation Walmart currently has 10800 stores in 27 countries with a customer base of 245 million Fiscal year sales in 2013 amounted to approximately US$466 billion Future plans The long term goal of the Sustainability Index is to design more sustainable products and to make Walmartrsquos global supply chain more socially and environmentally accountable and responsible It also aims to incentivise sustainability being a bigger part of day-to-day jobs By end of 2013 the Sustainability Index will cover approximately 70 of
sales By 2017 Walmart will buy 70 of goods for US stores from suppliers that
use the Sustainability Index References Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story Walmart 2013b Walmart Sustainability Index ndash Program Overview
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story
Case studies
page 11
Waste amp Resources Action Programme
The Old Academy 21 Horse Fair Banbury Oxon OX16 OAH
Tel 01295 819 900 Fax 01295 819 911 E-mail infowraporguk
Helpline free phone 0808 100 2040 wwwwraporguk
While steps have been taken to ensure its accuracy WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate incomplete or misleading This material is copyrighted It may be reproduced free of charge subject to the material being accurate and not used in a misleading context The source of the material must be identified and the copyright status acknowledged This material must not be used to endorse or used to suggest WRAPrsquos endorsement of a commercial product or service For more detail please refer to our Terms amp Conditions on our website - wwwwraporguk
For more information visit wwwwraporguk
Resource efficient and sustainable buying Case Studies
Wal-Mart Stores Inc (Walmart) parent company of ASDA in the UK is embarking on the huge task of addressing the emissions arising from its supply base which account for around 90 of overall emissions Walmart has set up a supplier Sustainability Index to rank suppliers on their performance encourage innovation in its supply chain and drive positive change at scale The index will eventually be implemented globally including in the UK Key achievements
Introduced a Sustainability Index for a supplier-based approach to
sustainability
Over 1000 suppliers have taken part in the Sustainability Index across
200 categories
Represents about 70 of the sales within the categories Walmart is
currently evaluating
Buyers now work directly with producers and suppliers to set goals to
reduce or eliminate food waste at each step of the supply chain ndash this
is an example of supplier innovation as a result of the Sustainability
Index
Identifying opportunities Walmart has identified the opportunity to assess suppliers more comprehensively after discerning that over 90 of its emissions occur in the supply chain The Sustainability Index is based on the work of The Sustainability Consortium which is delivering tools to measure evaluate and drive progress on the biggest sustainability opportunities across the lifecycle of products
ldquoWersquore really trying to accelerate the scale of sustainability innovation not just identify green niche productsrdquo
Jeff Rice Senior Director of Sustainability at Walmart
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability
Source
Case studies
page 10
Resource efficient and sustainable buying Case Studies
Implementation key steps taken Walmart began the immense task of assessing its 60000 suppliers in 2006 when it comprehensively surveyed its suppliersrsquo packaging impacts This was followed in 2009 by a 15-question survey and has now led to the development of the current Sustainability Index The index is implemented in the following way
The index is underpinned by robust environmental science provided
by The Sustainability Consortium (TSC) part-funded by the Walmart
Foundation Walmart has used TSCrsquos metrics to develop an index for
200 product categories and category scorecards to date and is
expanding to additional categories over time
Suppliers are contacted directly as and when their categories are
addressed by the expanding index
Scorecards are based around a self-assessed questionnaire and
suppliers are required to report twice yearly
Suppliers are ranked against peers in the same buying category with
a score of 1-100
Walmart buyers are being trained on the key sustainability issues in
their categories using the Category Sustainability Profiles developed
by TSC and they evaluate supplier performance against the biggest
challenges across the life cycle of their products
As of February 2013 every Walmart US and Samrsquos buyer merchant
and key global sourcing team now has performance objectives
dedicated to sustainability topics in their categories
Supplier scores and methods to improve them are discussed with
suppliers at regular intervals (eg buying meetings quarterly reviews
etc)
Key lessons Walmart learned valuable lessons through the process and are approaching the index in an iterative manner One of the key lessons learnt is that ranking or scoring of suppliers is critical to ensuring innovation and reduction of environmental impact in supplier behaviour Company profile Walmart is a large multinational retail chain based in the USA and is the worldrsquos third largest public corporation Walmart currently has 10800 stores in 27 countries with a customer base of 245 million Fiscal year sales in 2013 amounted to approximately US$466 billion Future plans The long term goal of the Sustainability Index is to design more sustainable products and to make Walmartrsquos global supply chain more socially and environmentally accountable and responsible It also aims to incentivise sustainability being a bigger part of day-to-day jobs By end of 2013 the Sustainability Index will cover approximately 70 of
sales By 2017 Walmart will buy 70 of goods for US stores from suppliers that
use the Sustainability Index References Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story Walmart 2013b Walmart Sustainability Index ndash Program Overview
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story
Case studies
page 11
Waste amp Resources Action Programme
The Old Academy 21 Horse Fair Banbury Oxon OX16 OAH
Tel 01295 819 900 Fax 01295 819 911 E-mail infowraporguk
Helpline free phone 0808 100 2040 wwwwraporguk
While steps have been taken to ensure its accuracy WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate incomplete or misleading This material is copyrighted It may be reproduced free of charge subject to the material being accurate and not used in a misleading context The source of the material must be identified and the copyright status acknowledged This material must not be used to endorse or used to suggest WRAPrsquos endorsement of a commercial product or service For more detail please refer to our Terms amp Conditions on our website - wwwwraporguk
For more information visit wwwwraporguk
Resource efficient and sustainable buying Case Studies
Implementation key steps taken Walmart began the immense task of assessing its 60000 suppliers in 2006 when it comprehensively surveyed its suppliersrsquo packaging impacts This was followed in 2009 by a 15-question survey and has now led to the development of the current Sustainability Index The index is implemented in the following way
The index is underpinned by robust environmental science provided
by The Sustainability Consortium (TSC) part-funded by the Walmart
Foundation Walmart has used TSCrsquos metrics to develop an index for
200 product categories and category scorecards to date and is
expanding to additional categories over time
Suppliers are contacted directly as and when their categories are
addressed by the expanding index
Scorecards are based around a self-assessed questionnaire and
suppliers are required to report twice yearly
Suppliers are ranked against peers in the same buying category with
a score of 1-100
Walmart buyers are being trained on the key sustainability issues in
their categories using the Category Sustainability Profiles developed
by TSC and they evaluate supplier performance against the biggest
challenges across the life cycle of their products
As of February 2013 every Walmart US and Samrsquos buyer merchant
and key global sourcing team now has performance objectives
dedicated to sustainability topics in their categories
Supplier scores and methods to improve them are discussed with
suppliers at regular intervals (eg buying meetings quarterly reviews
etc)
Key lessons Walmart learned valuable lessons through the process and are approaching the index in an iterative manner One of the key lessons learnt is that ranking or scoring of suppliers is critical to ensuring innovation and reduction of environmental impact in supplier behaviour Company profile Walmart is a large multinational retail chain based in the USA and is the worldrsquos third largest public corporation Walmart currently has 10800 stores in 27 countries with a customer base of 245 million Fiscal year sales in 2013 amounted to approximately US$466 billion Future plans The long term goal of the Sustainability Index is to design more sustainable products and to make Walmartrsquos global supply chain more socially and environmentally accountable and responsible It also aims to incentivise sustainability being a bigger part of day-to-day jobs By end of 2013 the Sustainability Index will cover approximately 70 of
sales By 2017 Walmart will buy 70 of goods for US stores from suppliers that
use the Sustainability Index References Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story Walmart 2013b Walmart Sustainability Index ndash Program Overview
Gunther M 2013 Game on Why Walmart is ranking suppliers on sustainability Walmart 2013a Our Story
Case studies
page 11
Waste amp Resources Action Programme
The Old Academy 21 Horse Fair Banbury Oxon OX16 OAH
Tel 01295 819 900 Fax 01295 819 911 E-mail infowraporguk
Helpline free phone 0808 100 2040 wwwwraporguk
While steps have been taken to ensure its accuracy WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate incomplete or misleading This material is copyrighted It may be reproduced free of charge subject to the material being accurate and not used in a misleading context The source of the material must be identified and the copyright status acknowledged This material must not be used to endorse or used to suggest WRAPrsquos endorsement of a commercial product or service For more detail please refer to our Terms amp Conditions on our website - wwwwraporguk
For more information visit wwwwraporguk
Waste amp Resources Action Programme
The Old Academy 21 Horse Fair Banbury Oxon OX16 OAH
Tel 01295 819 900 Fax 01295 819 911 E-mail infowraporguk
Helpline free phone 0808 100 2040 wwwwraporguk
While steps have been taken to ensure its accuracy WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate incomplete or misleading This material is copyrighted It may be reproduced free of charge subject to the material being accurate and not used in a misleading context The source of the material must be identified and the copyright status acknowledged This material must not be used to endorse or used to suggest WRAPrsquos endorsement of a commercial product or service For more detail please refer to our Terms amp Conditions on our website - wwwwraporguk
For more information visit wwwwraporguk