Report: Managing the Complexity of Corporate Responsibility in the Supply Chain

A company and its brand are only as good as the decisions its people make and the suppliers it uses. As many of the banks have found out to their cost, poor decision-making by key staff can be – quite literally – fatal to the business.

Any purchasing decision requires balancing of different factors, which need to be weighed one against another. Partners In Purchasing has a priority to help our clients do this, in order to make the right decisions in what they buy, who they buy from and what they pay for it.

Increasingly, making purchasing decisions is being complicated by the need to take so-called Corporate Responsibility into account.

What CR issues need to be factored into purchasing decisions, and how ought these to be balanced with other priorities? Some food costs have gone up by as much as 40% in the past year. How can operators balance the need to keep a tight rein on costs, whilst at the same time ensure that CR is considered in the decisions they take?

Moreover, there needs to be transparency both around procurement decisions and in the supply chain itself. Boards of directors need to know that their employees have taken decisions in the best interests of the company. Given the sensitivity and complexity of many CR issues, transparency validates the evidence that the relevant issues have been properly identified, understood and taken into account.

This report sets out how PIP can help its clients incorporate CR into their buying decisions. It explains what is meant by CR and then explores the CR issues associated with 6 significant product categories – water, meat, fish, tea and coffee, uniforms and contract cleaning. Finally it explains how these issues can be taken into account within a robust and transparent process that allows clients to balance CR considerations with other priorities. In this way our clients can take a responsible decision.

Download the full report:
Managing the Complexity of Corporate Responsibility (CR) in the Supply Chain
(pdf format)