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triple innova supplier assessment

triple innova`s holistic consulting concept integrates business management experience, scientific knowledge as well as environmental expertise. We support our clients in:

• Understanding & evaluating sustainability impacts along the value chain to ensure efficiency improvements and minimise business risks
• Developing tools to monitor and support the implementation of quality guidelines, such as supplier codes of conduct
• Customised trainings for internal & external stakeholders to overcome the lack of knowledge about sustainability topics

One example of these tools are our supplier assessments. A precondition for improving the sustainability performance of your supply chain is to find out more details about the environmental and social performance of the companies you purchase from. As a starter tool, our supplier assessments are designed to allow you to analyse and compare your suppliers according to international sustainability indicator sets, such as the Global Reporting Initiative (G3-Guidelines). The reports are customized to individual needs and you are able to choose the emphases as well as the scope of the assessment. The basic version consists of a one-day desk research on the basis of publicly available information. In addition, we offer to conduct supplier interviews to increase the quality of the assessment and to scrutinise your questions in depth.

Find here a few extracts of a sample supplier assessment and more practical examples by companies in our "Sustainable Supply Chain Management" brochure.

Download "supplier assessment sample" (2006) 0,08 Mb

Download "triple innova SCM-Brochure (2006) 0,4 Mb

Challenges and Benefits

Supply chains have become more and more complex due to ongoing international outsourcing processes that enable firms to produce more efficiently. A parallel trend is that companies are increasingly held responsible for their activities, be it for their suppliers’ actions or the disposal and recycling of products. The arising challenge is to rethink not only the 1st tier relations of the firm, but its whole supply chain - upstream and downstream. Knowing the own supply chain is key to a proper analysis of potential risks and the realization of various gains.
 
A number of risks arise from not-addressing environmental and social concerns in the supply chain. Tighter environmental legislation, e.g. energy taxes, the EU’s CO2-emission trading or the end-of life vehicles directive, puts pressure on companies to reduce the negative impacts of their activities. Of even greater importance are the risks related to a company’s brand value, which largely depends on its popularity with costumers. Nike, as only one example, has lost consumer confidence due to reports about the violation of basic workplace standards in suppliers’ production facilities. Although these misdoings have occurred outside the company's own realm, it is seen as responsible for these conditions. Non-governmental organisations devote their attention on production conditions in the supply chain, as consumers and potential investors progressively include social and environmental criteria in their buying decisions. (See e.g. OXFAM in our studies section)
A sound management of the supply chain can also gain reputation for the firm and its brands, lead to improved supplier relations and greater resource efficiency. In responding to the growing demand for sustainable goods and services, suppliers play a decisive role. Organisational changes towards a stronger cooperation with suppliers provide certain advantages, as long-term-suppliers will more easily comply with social and environmental standards at lower costs and new collaboration patterns – e.g. in research and development in products and processes – emerge.
Supply chains differ by sector and company and call for customised approaches. Still, some key lessons learned can be generalized: Successful firms combine different instruments – e.g. codes of conduct, internal and external audits, and training measures – in order to increase their effectiveness. Standards need to be formalized and measurable, as they might be interpreted differently at different locations. Industry-wide used instruments reduce the compliance burden for suppliers. Managing change towards increased sustainability is a long-term process and in case of non-compliance, a close cooperation with suppliers to address the causes of non-compliance can help to avoid the termination of business relations. Therefore, knowledge of local circumstances at production sites plays a crucial role.  Companies successful in SSCM integrate the sustainability perspective in all the firms activities, such as procurement or research and development and to place the responsibility for it in the top-management.
The realization of the benefits in SSCM is connected with many questions that affect the own firm and its products: Are consumers willing to pay higher prices for superior quality? Are there current firm activities counteracting the goal to become more sustainable? How can a firm find trustworthy suppliers that comply with social and environmental standards?
triple innova has gained experience in various practical aspects and a sophisticated scientific background. To address the last problem outlined, triple innova's supplier reports offer a solution. For all other questions, our expertise can help your company to identify risks and benefits and become more sustainable. Read also our „Sustainable Supply Chain Management“ brochure with a wide array of examples of corporate SSCM-practices and an article on global product chains (in German).