INDUSTRY ARTICLE LEADING THE WAY
CREATING A LEVEL PLAYING FIELD FOR SMES
The EU, responsible for regulating scores of energy firms, recently unveiled a number of new procurement rules designed to create a level playing field for small and medium- sized enterprises. This includes requiring companies to explain why a contract has not been split into smaller lots and only being able to specify suppliers have a minimum turnover of up to two times the contract value.
The UK Government is playing its part with David Cameron’s CSR adviser, and former United Utilities Group CEO, Philip Green writing to the nation’s 50 largest companies asking them to reveal how their suppliers helped deliver social value.
WIND INDUSTRY
Meanwhile the Government itself is encouraging wind firms to enter into Local Enterprise Partnerships, to open up supply chain opportunities for all companies able to compete on price and quality – irrespective of their size.
Wind farm giant DONG Energy is leading the way with a new commitment to involve SMEs in maintenance work whenever possible to level the playing field between small and large companies.
In order to help identify SMEs and the best companies to work with, DONG Energy has been working with supply risk management company Achilles to set up an online supplier information portal which allows suppliers to register for free on a centralised database. The database complements Achilles UVDB, an existing collaborative, pre-qualification community across the UK and Europe which independently assesses the risk of more than 1,000 supplier companies.
SEEKING SMALLER SUPPLIERS DONG Energy Head of Strategic Supply Chain, Joachim Steenstrup, said the company, with the help of Achilles UVDB, was seeking smaller suppliers to work on their wind farm developments along the English coast, including the West of Duddon Sands and Westermost Rough offshore wind farms.
“We will be using local suppliers to maintain (the wind farms) and keep them running,” Mr Steenstrup said.
“Using Achilles UVDB is our way of ensuring a transparent supply chain at the same time as levelling the playing field between large and small businesses,” he said.
Achilles UVDB account manager Fareita Udoh said the mounting government pressure to include social value as a part of their business model meant companies would need to change their way of thinking.
WHY IS IT IMPORTANT TO USE MORE SMES AND WHAT IS DONG ENERGY’S AGENDA?
“There are some simple steps all companies need to take to understand their suppliers and increase their social value,” Ms Udoh said.
“If companies take these points into account, they will be more than prepared for regulations being implemented around the world.”
THREE TOP TIPS FOR ENSURING SOCIAL VALUE IN YOUR SUPPLY CHAIN…
1 Invest in a proper system to manage information
Companies need to invest in a proper system to manage information about their supply chain. Accurate and up-to-date information about suppliers allows a company to easily identify where improvements can be made
2 Work collaboratively
Working collaboratively with others in the industry not only helps a company increase their standing in a community but halves costs and decreases the burden on suppliers. Achilles has found this works best by including a social value questionnaire in industry pre-qualification communities
3 Map the supply chain
The growing pressure to also report on suppliers’social value efforts means businesses must have visibility across their entire supply chain. By asking businesses about their suppliers, buying organisations can then question those suppliers about their social value activity
Fareita Udoh Achilles UVDB
Achilles is one of the world’s largest service providers of global supply chain risk management solutions working in 22 countries.
www.windenergynetwork.co.uk
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