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Ethics & Procurement: 

Ethics & Procurement CIPS Central London Branch

Ethics & Procurement: 

Graham Collins Chairman Central London Branch Ethics & Procurement

Ethics & Procurement: 

Roy Ayliffe Head of Professional Practice CIPS Ethics & Procurement

Ethics & Procurement: 

Alan Marshall Furniture Industry Research Association (FIRA) Ethics & Procurement




SCOPE Ergonomics A brief introduction to the ethical and sustainable aspects of furniture procurement: and end of life initiatives Sustainability issues Supply chain implications


Now enshrined in legislation Good ergonomics – no single solution to all problems. 720 mm high desk is standard solution for non-standard workforce Size involves torso, leg and arm ratios ERGONOMICS 720mm


ERGONOMICS Chair adjustment vital …. …. but typically + 10mm of desk adjustment will meet the needs of 90% of people


ERGONOMICS One desk height can’t accommodate tall / short / and wheelchair users


Sit / Sit – 600 – 800 mm ERGONOMICS Sit / Stand 600 – 1240 mm 600 mm


WIDER DDA IMPLICATIONS Height adjustability or spilt level work surfaces also apply to reception units –not just for visitors but also staff. Manual - Can be locked off after workstation assessment Many options mean that users must be trained The Dilemma Dynamic - Can be altered by users


SUSTAINABILITY – APPLIED TO FURNITRE Why? Balance between consumption and resources passed in the 80s We can’t keep consuming the planet’s finite resources at current rates Well supply chain issues are … …and sustainability starts with the supply chain Not My Problem!


Timber Beware of Illegal logging ? Sweat Shops & Child Labour ? Could this be your Furniture? Sustainability starts with the Supply Chain SUSTAINABILITY – APPLIED TO FURNITRE What’s In Your Furniture Not just hardwoods All solid timbers Veneers And particle boards


TIMBER CERTIFICATION SYSTEMS Both certification systems audit the supply chain from forest to marketplace Forest standards are based on a voluntary system Forest standards are based on an independently audited system


TIMBER CERTIFICATION SYSTEMS Government furniture purchasing contract specifies sustainable timber


TIMBER CERTIFICATION SYSTEMS The acid test If you can’t prove that the timber is not illegally logged ….. …… the customer, shareholder or environmental NGO may assume it is ! Check the Chain of Custody Number Example - COC – 0002


END OF LIFE CONSIDERATIONS Refurbish – Recycle - Scrap –? Complete Life Cycle New tops for old. Spend a little more on new products to achieve: Low cost of ownership Ability to refurbish




END OF LIFE CONSIDERATIONS Refurbish – Recycle - Scrap –? Complete Life Cycle Audited disposal to charities & SMEs whilst creating work for long term unemployed Responsible disposal via social enterprise


Does the product meet your and legislative criteria? and most of all check all claims Sustainability issues Supply chain implications AN ETHICAL & SUSTAINABLE APPROACH TO PROCUREMENT THANK YOU ………QUESTIONS?

Ethics & Procurement: 

Paul Palmer Professor of Voluntary Sector Management - Cass Ethics & Procurement


The Apprentice – Alan Sugar one philosophy but out majority of staff in Voluntary sector identify with fired candidate who said she could not sell a product re price, source etc Culture of sector – voluntary – but 500, 000 paid staff – and buys some £14 Billion of services and goods Culture and governance of sector – trustees - suspicion What type of products/services – can vary widely – social enterprise developments – but also trading by traditional charities – most famous offshoot of fair trade re Oxfam


Buy into ‘fair’ culture of sector – changing nature of some consumers – joint ventures a possibility? Voluntary sector not push over – e.g. RSPB and Consortium do checks – re members and mission – examples re labour exploitation and animal testing; recycling Ethical supply chains – Church of England Report Gangmaster programme - Labour supply and costs

Ethics & Procurement: 

Bob Tragheim Head of Non Merchandise Procurement at Marks & Spencer Ethics & Procurement

Procurement’s Contribution to Brand Integrity: 

Procurement’s Contribution to Brand Integrity Bob Tragheim M&S Group Head of Procurement


Agenda M&S Background M&S a bit of history… The M&S Brand Principles Plan A – A 2006 Initiative Procurement’s Contribution Procurement DNA Experiences

M&S Background: 

M&S Background M&S Non Merchandise Procurement is responsible for £1.5bn Goods not for Resale Items on our shopping list include Flooring & Fridges, Lifts & Lighting, Carpet & Carrier Bags, Uniform & Utilities, Travel & Trolleys, IT Hardware & Software, and lots of people including Architects, Management Consultants, and Engineers. 2006 7.8bn Turnover M&S are one of the UK’s leading retailers with 15.5 million visitors to our stores each week 70000 Employees 520 UK Stores 218 franchise stores in 35 different territories Modernising 5 million sq.ft. 2007 £47/second !

M&S a bit of history…: 

M&S a bit of history… M&S is acknowledged as one of the UK’s retail icons but in 1998 we slipped into decline Later in 2004, Stuart Rose joined the business and began a period of strategic review Stuart Rose was only recently quoted using the “R” word – “Recovery” for the first time since his arrival Brand Recognition: Named Responsible Retailer of the Year at World Retail Awards Ranked as worlds fastest growing brand (Millard Brown Research) (1) Stuart Rose appointed as chief executive (2) Philip Green retreats (3) Sales at the chain rise for first time in almost two years (4) Annual sales see a sharp rise (5) Healthy half-year profits “As all good buyers I trust you bought at £2.80!”

The M&S Brand Principles: 

The M&S Brand Principles M&S was founded on 5 company principles and continue to trade on these today: Quality Value Service Innovation Trust Values M&S Brand Integrity is all about consistent and balanced application of these principles

Plan A – A 2006 Initiative: 

Plan A – A 2006 Initiative Plan A is our five-year, 100-point plan to tackle some of the biggest challenges facing our business and our world. It will see us working with our customers and our suppliers to: Combat Climate Change Reduce Waste Safeguard natural resources Trade Ethically …and promote a healthier nation

Procurement’s Contribution: 

Work with suppliers pro-actively to deliver the 5 pillars of Plan A Encourage supplier innovation & enable product innovation Ensure all that we buy is sustainable, environmentally friendly and ethically sourced Support the M&S service culture Delivering value for money & minimising procurement overhead Deliver quality products and services Procurement’s Contribution Quality Value Service Innovation Trust Why How Improve the Customer Shopping Experience, the Store Environment & Business Performance Procurement DNA What Plan A

Procurement DNA: 

Procurement DNA Integrated buying is the company-wide methodology The component parts which deliver Brand Integrity include: Supplier Evaluation Process Evaluation of total cost of ownership Business to Business meetings Delivery of Plan A Creating a High performance team Plan A Quality Service Price Innovation


Experiences… Procurement has been instrumental in developing Plan A, your function should Influence Thinking in your organisation Brand integrity must form part of the buyers RACI – it Cannot be Abdicated Buyers cannot manage brand integrity from their desks – they must Walk the Value Chain As buyers we are not islands, we cannot do this without stakeholder and supplier engagement Think UK as well as off shore Don’t try and invent a solution, apply and Transfer Best Practice. E.g. Ethical Trade Initiative


Experiences… Create small Icons of Change for maximum impact e.g. office recycling, green stationery etc. Ensure all initiatives are Integrated and Measured within category plans and supplier business to business plans Ensure you reward Pro-activity and Innovation within your business and your supply base “The world was not built overnight so don’t try and change it overnight”

To Conclude…: 

To Conclude… “We’re not just any procurement team – we’re the M&S procurement team!”


Close Thank-you for listening

Ethics & Procurement: 

Roy Ayliffe Q & A Ethics & Procurement


Next Events 22nd May – Managing Agency Relationships Practitioner Event BBC White City registration from 5.30pm 28th June – Professional Development & Skills (afternoon) Practitioner Event, London Metropolitan University 11th July – Buyers Guide to the Energy Market (morning) Keynote Event, DTI London

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