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9 March 2012 | Angeline Albert
FMCG manufacturer Henkel aims to triple its efficiency across its
business and supply chain by 2030, in part by becoming more sustainable and
working with suppliers.
To reach this goal, the company said it
would improve its efficiency by an average of 5 to 6 per cent each year
according to its Sustainability Report 2011
published this week. Karl-Heinz Ott, purchasing manager with global
responsibility for sustainability, said in the report: “Through targeted
collaboration with our suppliers, we aim to help improve sustainability
standards throughout our supply chain.”
According to the document, in 2011 the
company behind brands such as Persil and Sellotape began classifying suppliers
by adopting a traffic light system. Red is for non-compliant suppliers and
leads to a prompt termination of the supplier relationship and in the case of
yellow, the areas where improvement is needed are identified and the suppliers
The company said it has also developed an
early warning system for sustainability risks in global purchasing markets by
estimating the potential risks in a region. It has concentrated on countries
identified by international institutions as being associated with high levels
of risk involving human rights, corruption and legal barriers.
Henkel has also begun to include strategic
raw materials suppliers in its reporting system to record environmental data in
order to achieve sustainable improvements in the supply chain in the long term.
The report said that since 2010, the
purchasing department has incorporated sustainability criteria into its inquiry
processes and invitations to tender for logistics services. These include the
definition of energy-saving targets, measures for modernising vehicle fleets
and investments in programs for optimising routes and determining emissions.
Also this week the company’s Annual Report 2011
revealed the organisation had achieved its highest ever sales reaching €15.6
billion (£13 billion), a rise of 3.4 per cent compared the previous year.