Henkel aims to triple efficiency by 2030

9 March 2012

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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 are audited.

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.

 

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