Skanska

  • £11 million savings in two years
  • £5 - 6 million further saving planned
  • 35% reduction in non-compliances


Skanska is one of the world’s leading project development and construction groups with expertise in construction, development of commercial and residential projects and public-private partnerships. Based on its global green experience, Skanska aims to be the clients' first choice for green solutions. The Group currently has 52,000 employees in selected home markets in Europe, in the US and Latin America. Headquartered in Stockholm, Sweden and listed on the Stockholm Stock Exchange, Skanska's sales in 2010 totalled around £11 billion.

In the UK, Skanska employs approximately 4,600 staff and undertakes around £1.3 billion worth of work each year carrying out all aspects of the construction, development and infrastructure process - from financing projects, through design and construction through to facilities management, operation and maintenance. 

Skanska works in accordance with the Skanska Code of Conduct and to its Five Zeros, which reflect its core values: Zero loss-making projects, Zero accidents, Zero environmental incidents, Zero ethical breaches and Zero defects.

The organisation was recently named the Greenest company in the Sunday Times 2011 Best Green Companies Awards and the Best Contribution to Corporate Responsibility at the Chartered Institute of Purchasing and Supply (CIPS) ‘Supply Management awards 2011’.

The role of purchasing within Skanska

Good procurement within Skanska contributes to the successful winning and execution of profitable projects. Sustainable procurement has helped win new contracts, enhanced Skanska’s reputation and contributed significantly towards the delivery of Skanska UK’s business objectives.

Skanska’s approach to sustainable procurement provides specific guidance in six key areas: supply chain health and safety; ethical sourcing; supply chain equality, diversity and inclusion; environmental and green sourcing; best value procurement and supply chain quality management.

Why CIPS Certification?

CIPS certification of Skanska’s procurement and supply chain management approach provided an independent confirmation that the way they procure is best practice. The introduction of the CIPS certified One Skanska procurement process has also provided clarity on the required way of procuring and an enhanced governance structure common to all operating units that supports implementation of best practice sustainable procurement across the business.

In addition, the engagement with CIPS has helped to extend communications to supply chain forums and supplier relationship meetings to engage and get buy-in from our supply chain.

How CIPS helped

  • CIPS certification for the One Skanska Procurement process has enabled Skanska to add best practice procurement techniques across all operating units in the UK
  • The procurement team can now see how the way they purchase and the supply chain they engage directly impacts on winning work and delivering sustainable projects.
  • Category savings of over £11 million during the past two years with plans intended to add a further £5-6 million saving during 2011.

Benefits of Certification for Skanska

CIPS certification has fundamentally helped Skanska develop and apply leading edge procurement practices supported by excellent sustainable procurement policies, procedures and systems.

One Skanska Procurement process now represents best practice in the UK and is a benchmark for the construction industry.

As part of the CIPS certified procurement process Skanska now completes a two-day intensive audit of key suppliers to establish levels of compliance with their sustainable procurement policies.

The improvement over just a one-year cycle has seen a 35% reduction in the number of non-compliances. The supply chain has found this an extremely valuable performance development tool for their businesses

The sustainable procurement approach has resulted in the definition of what a green supplier looks like. This has led to significantly improved supplier selection and relationship management processes.

Procurement teams now always look for innovative approaches from the supply chain.

“Skanska are the first construction company to have their company-wide procurement processes and procedures CIPS accredited and are completely BS8903 compliant.

CIPS certification has fundamentally helped us develop and apply leading edge procurement practices supported by excellent sustainable procurement policies, procedures and systems.”

Andrew MacAskill
Supply Chain Director, Skanska UK