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Article

1 Oct 2010

Author:
Fiona Harvey, Financial Times

Supply chain: Responsible sourcing means focus on details

It is no accident that so many of the businesses that have tended to be most conscious of their environmental performance have been those in the most customer-facing sectors...These companies have strong brands they want to protect – and often correspondingly long supply chains. That can make control hard to achieve…involving not only extensive information from suppliers, but working with them to try to develop better products...For some companies, the process of overhauling procurement processes can be huge…If the end product or service is to be truly green, the purchasing company must have access to more information than is normal in supplier agreements…One problem with writing all of this into a contract is that so much about green procurement remains hazy and subjective…companies must decide…for themselves. And that is taking many procurement departments into unexplored territory…[refers to PepsiCo, Coca-Cola, Unilever, Nestlé, Walmart, Tesco, HSBC, Bank of America Merrill Lynch, Nestlé, Dyson, Centrix Consulting, PA Consulting, Walkers (part of PepsiCo)]