Commentary Procurement
Essential scrutiny
Relying on supply chain self declaration is no longer satisfactory for buyers wanting hard facts. Which is why, says Adrian Cook, the answer is a robust and transparent cross-industry independent accreditation scheme
A
s a buyer, I am interested in the hard facts that current and potential suppli- ers can provide to reassure me about
their company’s commitment to health and safety, corporate social responsibility (CSR) and sustainability. I point out that if robust informa- tion is not forthcoming, I am forced to use my imagination – and, like many buyers, this is when I start to assume the worst. We intend soon to no longer rely on anecdot- al information from supplier sales teams telling us how good their track record is. We are increasingly asking companies to produce independent verification of their claims in order that they we can invest time with them around the negotiating table. Up until now, a lack of independent accredi- tation schemes meant that we had to rely on a system of self declaration. Consequently, the standards and policies that some companies claim to have on PQQs sometimes may not stack up when placed under scrutiny. So how do we tackle this problem? The answer is to adopt a cross-industry independent accreditation such as the BuildingConfidence scheme. This initiative consists of robust third party auditing and transparent processes. It is designed to provide buyers and suppliers with greater assurances that the supply chain is responsible, competent and legally compliant. I believe that this accreditation should become mandatory for suppliers of certain types of goods and services.
For suppliers across the entire supply chain, there are clear business benefits of adopting this standard and I would urge them to consider it seriously. Independent accreditation opens up the market for suppliers whose clients increas- ingly demand this level of scrutiny, and gives independent endorsement and validity to the claims that companies make around their credentials. Crucially, it can be a sales tool
Open book: third party auditing is designed to provide buyers and suppliers with greater assurances
providing companies with a fact-based compet- itive edge in negotiations, because it can help move the discussion away from being solely focused on price.
Adopting a single accreditation process across the industry will help to raise standards, make the tendering process more secure, efficient and transparent, and ultimately elimi- nate the need for companies to ask or answer the same questions over again. At Tarmac, we believe in practising what we preach. We are a council member of the Achilles BuildingConfidence scheme and also have gained this certification – the first quarrying and construction materials company to do either. To provide greater transparency within our supply chain and raise industry standards, we
have selected key strategic suppliers and have encouraged them to also gain the accreditation. The response has been really positive and lead- ing companies such as Nynas, Go Plant and Hyrex have already secured certification. Tarmac has initially asked 50 of its key suppliers to progress achieving the award. Across the industry, those suppliers that cannot provide independent verification of their claims send a message that they either don’t take the issue seriously or maybe have something to hide – and then that’s when my imagination takes over. So my advice is, don’t give buyers a chance to fear the worst.
Adrian Cook is executive director of procurement at Tarmac Limited
Sustainable Business | August/September 2010 | 23
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