BSR Insight

A Weekly Newsletter for BSR Members | January 12, 2010

   
 

In This Issue

Editor's Note

Supply Chain Opportunities

In recent months, companies including Kraft Foods and Wal-Mart have made supply chain changes aimed at saving the firms up to US$300 million and US$12 billion respectively. It's only logical that global companies angling to reduce costs in a global recession look to their global supply chains.

But cost-savings aren’t the only opportunities in strategic supply chain management. This week's feature article is devoted to responsible sourcing, which can improve companies' sustainability practices.

To ensure that these practices are effective, it's important to develop and track key metrics—a topic covered in a recent BSR report.

Finally, through a new partnership with BSR, the UN Global Compact is launching a work stream to guide companies on sustainable supply chain practices; learn more in our spotlight.

A Strategic Approach to Responsible Sourcing Department Icon

In Depth

A Strategic Approach to Responsible Sourcing

By

Following the economic crisis, many companies looked to their supply chains to save costs. A responsible sourcing strategy can help businesses reduce expenses and improve sustainability performance.

Read more →
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Spotlight

BSR and the UN Global Compact: Improving Supply Chain Sustainability

By

In partnership with BSR, the UN Global Compact (UNGC) will launch a work stream later this month to provide guidance for companies on developing more sustainable supply chain practices around the four issue areas of the UNGC: human rights, labor, the environment, and anti-corruption.

The purpose of the collaboration is to develop the following outputs in time for the UNGC Leaders Summit on June 24 and 25:

  1. A new guide on getting started, "Supply Chain Sustainability: Implementation Guidance, Inspiration, and Examples"
  2. An interactive, online tool for procurement teams to assess and learn more about responsible sourcing strategies

Companies may request to join the UNGC Supply Chain Advisory Group, suggest examples of good practices, and sponsor the work stream deliverables. The partnership will also engage with UNGC signatory companies through seminars and workshops on responsible sourcing.

For more information, contact Cody Sisco, Manager, Advisory Services, BSR (+1 415 984 3212 or csisco@bsr.org), or Cecilie Hultmann, Issue Manager, Supply Chain Sustainability, UNGC (hultmann@un.org).

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Toolbox

Measuring Metrics That Matter in Supply Chain Sustainability

BSR's recent report guides companies on how to design effective supply chain sustainability indicators and metrics, which are essential tools in helping companies demonstrate both internally and externally the value of these strategies.

In designing metrics, BSR recommends that companies:

  • Assign ownership to indicators: Companies should design key performance indicators that define who is responsible for implementation and who is accountable for achieving objectives.
  • Increase focus on suppliers' management capacity: While strong performance is the ultimate goal, capacity for independent management of social and environmental issues is crucial for suppliers to take ownership of their sustainability progress.
  • Establish value for suppliers: Metrics that clearly quantify the value resulting from responsible sourcing programs will motivate suppliers to continue their performance improvements.
  • Communicate program value externally: Stakeholders want to understand the processes through which companies meet their supply chain sustainability commitments and the value created for the brand.