Ethical Purchasing

August 7, 2013 In Ethical Purchasing, Ethical Supply Chain Management, Fair Trade, Metrics, Sustainable Purchasing

Whole Foods Tops 2013 Seafood Retailer Scorecard

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According to the annual CATO Report recently published by Greenpeace, Whole Foods supermarkets has moved to the top of seafood retailers by focusing on the sustainability of their supply chain. The report outlines the current state of retail seafood and discusses the practices, both positive and negative, that are part of the supply chain that puts fish on grocery store shelves. Additionally, Greenpeace ranks the retailers on four criterion: policy, initiatives, transparency, and red list inventory (a list of 22 priority species).

Whole Foods captured the crown by reining in its seafood supply chain; reducing the number of red list fish, offering a selection of sustainable canned tuna, and introducing quantitative policies and initiatives that govern its purchasing decisions. Other notable grocers from this years report include Safeway, who came in second place with their goal of selling no unsustainable seafood by 2015, and Trader Joe’s, who improved from 15th in last year’s report to 3rd this year by significantly stepping up efforts in all four areas.

While there is still work to be done to implement sustainable seafood practices globally, all three of the CATO Report’s top retailers are actively reducing their environmental impact by developing and implementing a thorough sustainable purchasing policy. This is true in many other purchasing areas as well as seafood and can be applied to any business. Reeve Consulting has had experience helping our partners to build out and implement sustainable purchasing policies in dozens of those areas.

July 2, 2013 In Ethical Purchasing, Ethical Supply Chain Management, Metrics, Sustainable Purchasing

Buying Local Pays Dividends

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LOCO, in cooperation with Columbia Institute and ISIS Research Center at the Sauder School of Business recently released a report titled The Power of Purchasing that outlines the economic impacts of local procurement. This is a landmark study in the Canadian market conducted by Sauder MBA Alumni Anthony Pringle. While most would agree that purchasing locally has a positive economic effect, Pringle sought to quantify the effect by studying the economic effect that B.C. businesses could have by simply purchasing office supplies locally. Without getting into too much detail (read the report, it’s really well written), Pringle compared the economic effect of purchasing office supplies from a local supply company, Mills Basics, to that of purchasing from a national chain. He found that by employing the former, buyers were able to provide nearly double the economic benefit to the local B.C. community in the form of greater employment as well as higher tax revenue for the local government.

 

Although many companies still make purchasing decisions based on price alone, there are a growing number of values based organizations willing to look at the greater economic impact that buying can have. With reports like Pringle’s as ammunition for the fight, purchasing managers in Canada will undoubtedly have a greater opportunity to make the case for local buying.

May 27, 2013 In Ethical Purchasing, Metrics, Out and About, Reeve News, Sustainable Purchasing, Training

Back by Popular Demand: Buy Smart Network Workshop – June 19, Vancouver

Back by popular demand, the next half-day session of Maximizing the Impact of Sustainable Purchasing will be held Wednesday, June 19 at the Tides Canada building in Vancouver.

Are you committed to sustainability but unsure of how it can be realized within procurement? Take away practical tools, approaches and learn of real-world case examples in sustainable purchasing during this practical and inspiring half-day session on sustainable purchasing!

Who is this workshop meant for?

The BuySmart workshops have been designed for staff in public, private and non-profit organizations who are responsible for purchasing, sustainability or corporate responsibility in their organizations — and anyone else with an interest in sustainable purchasing and its associated social, environmental and financial benefits.

Why is this workshop useful to you and your organization?

This BuySmart workshop will show you how to leverage your purchasing power using simple tools such as scorecards and product guidelines. It can provide you with the knowledge and resources to:

  • Maximize the strategic impact of your sustainable purchasing program
  • Send clear sustainability performance signals to the market and enhance relationships with your suppliers
  • Refine your procurement process to:
  1. Integrate sustainability into bid documents
  2. Introduce supplier sustainability performance scorecards
  3. Consider the different methods of evaluating supplier proposals
  4. Establish sustainability standards and clauses for different commodity groups
  • Use Key Performance Indicators (KPIs) to measure sustainable purchasing program impacts.

Have your questions answered first-hand by people with a wealth of experience in sustainable purchasing. The workshop is facilitated by Tim Reeve, co-founder of the BuySmart network and President of Reeve Consulting, along with Cora Strandberg. They will be joined by guest speakers Shelley Morrison, MBA, SCMP, CMP who is the Strategic Procurement Programs Manager at BC Hydro.

Where can I sign up?

To register, please visit maximizingimpactjun2013.eventbrite.ca.

A 20% discount is offered for organizations sending two or more participants (email bpurdy@fraserbasin.bc.ca for details).

For more details, feel free to call Bob Purdy at 604-488-5355.

Register soon as spaces are limited!

View the full workshop flier. [PDF]

April 26, 2013 In Ethical Purchasing, Ethical Supply Chain Management

Loblaws and Joe Fresh waking up to more bad news

Every CEO wants to sit down with their coffee and open the paper to find their company making headlines – but not like this.

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Consumers across Canada are looking at the labels in their clothing and wondering if the t-shirt they put on this morning was made in Bangladesh and if the person that made it died yesterday in the catastrophic collapse of a garment factory in Dhakar.  Loblaws, the parent company of the Joe Fresh brand is scrambling to contain a public relations nightmare as word spreads that some of their garments were, in fact, made in that factory.

Loblaws had done its homework, they had audit systems in place to ensure that their clothing was made without child labour and with fair pay and decent working conditions.  But they forgot about the building.  No one thought to ask if the building itself was safe.  Creating comprehensive audits to protect the workers in your supply chain and your brand is what Reeve Consulting specializes in; it is our hope that by encouraging companies to engage in this dialogue and practice that future disasters can be avoided.

October 11, 2012 In Ethical Purchasing, Out and About, Reeve News, Sustainable Purchasing, Training

Introduction to Sustainable Purchasing Seminar – Nov. 2, Vancouver

Are you interested in sustainable purchasing but not sure where to start? Struggling with developing the business case? Wondering where to focus resources?

Acquire the knowledge and confidence to embrace sustainable purchasing practices in your organization by joining the BuySmart Network, a non-profit organization dedicated to advancing sustainability in BC and beyond, November 2nd for the Introduction to Sustainable Purchasing seminar. This half-day seminar will focus on the fundamentals of sustainable purchasing featuring practical insights and lessons learned from professionals in the field.

Designed for purchasing, sustainability and corporate responsibility staff in public, private and non-profit organizations, seminar topics will include:

  • How to integrate environmental, social and ethical factors in the procurement process
  • Key components of a sustainable purchasing tendering toolkit
  • What’s needed to overcome barriers and recognize the best opportunities for sustainable purchasing in you own organization

Tim Reeve, a Co-Founder of the BuySmart Network and President of Reeve Consulting with Coro Strandberg will lead the session, joined by guest speakers Tracey Husoy, Manager of Purchasing and Risk Management, Metro Vancouver

Event Details

  • When: November 2, 2012, 8:30 am – noon
  • Where: TIDES Canada, Hollyhock Room 304, 163 West Hastings St. Vancouver
  • Cost: $125 + HST
  • Register: www.buysmartintro.eventbrite.ca

Full details of the Introduction to Sustainable Purchasing seminar can be found in the event brochure [PDF].

For more information about the seminar, contact Bob Purdy by email at bpurdy@fraserbasin.bc.caor phone at (604) 488-5355.

 

March 12, 2012 In Ethical Purchasing, Municipal Collaboration for Sustainable Purchasing, Reeve News, Sustainable Purchasing

Sustainable Purchasing Supports Municipalities Green Strategies and Helps Manage their Bottom Line

Sustainable purchasing and supply chains are on municipal agendas across Canada. Increasingly, decision-makers are recognizing that sustainable procurement practices add value to their carbon neutral programs, zero waste goals, economic development opportunities, risk management, leadership, efficiency and innovation while positively engaging their staff and the communities they serve. Sustainable procurement practice is relatively new to municipal governance.

To efficiently manage the learning curve, municipalities are joining together. One successful example is the Municipal Collaboration for Sustainable Purchasing (MCSP).  A newly released report from Reeve Consulting, The State of Municipal Sustainable Procurement in Canada is co-authored with representatives of the MCSP. This report details the current state of sustainable purchasing practices in Canada including ratings and rankings of municipal programs from the MCSP’s member cities such as Halifax, Vancouver, Whitehorse, Grand Prairie, Guelph and Saskatoon.

The MCSP pilot project was formed in 2010 and currently members represent fourteen Canadian municipalities. By leveraging their collective experiences, knowledge and resources, they are strengthening their respective sustainable purchasing programs. The steering committee includes representatives from Whitehorse, Ottawa, Edmonton, London and Victoria. Five new members were welcomed in 2011.

The 2012 report, authored by Reeve Consulting and the MCSP, details their investigation into the depth of policy development and implementation across the country. Further, where there is under leveraging, what is holding municipalities back?  There are useful insights for municipal decision-makers, discussion of the top five emerging trends in this sector, and an overview of the main challenges and top priorities for 2012.

10 Key Program Areas for Successful Sustainable Purchasing

Municipalities fast tracking their efforts will find great value in the 10 Key Program Areas for Successful Sustainable Purchasing, which includes the ingredients for a comprehensive sustainable procurement program. One key element is developing a Supplier Code of Conduct. The City of Edmonton advanced the verification framework for their Supplier Code by providing public disclosure of their apparel factory locations. Training sessions were held in 2011 for staff of the City of Halifax introducing them to sustainable procurement concepts.

A clear demonstration of leadership is the collaboration between the City of Whitehorse and the Yukon Intergovernmental Committee on Environmental Sustainability. These, and other key program areas for successful sustainable purchasing, are presented in this report along with tangible examples of implementation.

Top 5 Emerging Trends in Municipal Sustainable Procurement

The State of Municipal Sustainable Procurement in Canada features a detailed discussion of the Top Five Emerging Trends in Municipal Sustainable Procurement including supplier innovations, emerging social programming and collaboration building. Findings show that policy development is advancing and most municipalities are in the early stages of their strategic program development.

However, current resource levels, in comparison with expectations of the programs, are miss-matched. Sustainable purchasing programs have insufficient resources to capitalize on many opportunities. As a result, implementation of the majority of programs is still a challenge.

On the positive side, Finance and Sustainability Departments are increasingly realizing synergies between their financial objectives and sustainable procurement programs and are building powerful teams at the senior management and executive levels.

Despite solid progress in these areas, a major finding in The State of Municipal Sustainable Procurement in Canada, is the disproportionate amount of time spent creating policies, procedures, tools and the capacity to implement sustainable procurement practices compared to the actual application. Another area where gains should be made is de-constructing robust measurement and reporting frameworks.

2012 Program for the Municipal Collaboration for Sustainable Purchasing: join us!

All local governments are encouraged to participate in the MCSP no matter the size of the community they serve. Current member municipalities send representatives such as a Director of Supply Management, Procurement Manager, Senior Environment or a Sustainability Manager.

All members participate in networking teleconferences, webinars and action planning sessions held over the course of each calendar year. They share sustainable procurement lessons, best practices and tools enabling them to streamline implementation of their municipal program development. A sustainable procurement expert facilitates each discussion, the training sessions and provides project secretariat services to the collaboration.

If you would like to join this project or require more information, contact Tim Reeve by email at tim@reeveconsulting.com or by phone at 604-763-6829.

November 8, 2011 In Ethical Purchasing, Ethical Supply Chain Management, Out and About, Reeve News, Sustainable Purchasing, Sustainable Sports

Due North: Strengthening Green & Sustainable Purchasing in the Yukon

Flickr / Arthur Chapman

Various orders of government in the Yukon are committed to reducing the environmental impact of their operations by designing and implementing customized environmental and sustainability policies, projects and programs.

To this end, the Yukon Intergovernmental Committee on Environmental Sustainability (YICES) is focused on identifying opportunities for collaboration to advance a collective sustainability agenda and strengthen individual programs. Recently Reeve Consulting worked with YICES to plan, organize and facilitate a sustainable purchasing workshop in Whitehorse.

Held on October 27th the full-day workshop attracted more than 50 participants, including government staff from four orders of government (federal, territorial, municipal and First Nations) as well as participants from other major organizations in the North such as NorthwesTel, Yukon Energy Corporation and Yukon College.

With a focus on increasing support and skills for green and sustainable purchasing, as well as catalyzing a network between various levels of government to strengthen sustainability initiatives, a key outcome of the event was the high degree of enthusiasm that participants demonstrated for collaboration.

Workshop Highlights

The day kicked-off with a welcoming address from Mike Johnson, Deputy Minister, Highways and Public Works for the Yukon Government who highlighted the importance of sustainable purchasing to the Territories strategic objectives of reducing costs, improving services and infrastructure. Johnson contextualized his remarks with the effects of climate change on the North and the millions being spent to repair highways and roads as a result of permafrost break-up.

Key drivers for sustainable purchasing were highlighted in the first session of the day, with a clear overview of the business case and level of support required to develop a successful sustainable purchasing program. Speakers David Knight, Manager, Procurement Services for Highways and Public Works in the Yukon and Melissa Hall, Procurement Advisor, Corporate Services for Aboriginal Affairs  & Northern Development Canada, made compelling cases around how sustainable purchasing is helping to take advantage of eco-efficiencies associated with reduced packaging, product take-back and reduced greenhouse gas emissions – issues critical to northern communities were transportation costs can be at a premium.

To walk the talk, Reeve Consulting worked with organizers to have Madelaine Plouffe, Green Procurement Team Leader with Public Works Government Services Canada in Gatineau, Quebec provide a lunchtime keynote address via video conferencing technology that allowed for a live and interactive presentation.

A preliminary review of the evaluations shows that participants were very pleased with the event. To build on this momentum, YICES is now working on outlining future workshops.

Environment Yukon has linked to many of the presentations from the day on their homepage. Slides from Reeve Consulting’s presentations [PDF] are also available online.

Talking strategy with City of Whitehorse & the Arctic Winter Games

While in Whitehorse, Tim Reeve also took the opportunity to continue some strategic planning with the City of Whitehorse on the development of their environmental sustainable purchasing policy.

Tim also had the opportunity to stop by the offices of the Arctic Winter Games to meet with organizers and offer some thoughts on how they can achieve zero waste goals for the Games in March 2012.

October 13, 2011 In Ethical Purchasing, Municipal Collaboration for Sustainable Purchasing

How are Municipalities Benefiting from Sustainable Supply Chain Collaboration?

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It has nearly been a year since a group of Canadian municipalities came together to create the Municipal Collaboration for Sustainable Purchasing (MCSP), a project aimed at leveraging the collective experience of municipalities to advance their sustainable purchasing initiatives.

So, is the idea of sharing best practices and collaborating on special projects really paying off?

Reeve Consulting is facilitating the MCSP which is governed by a Steering Committee comprised of the cities of Ottawa, Victoria, Edmonton, London and Whitehorse. This year there are fifteen municipalities from across Canada (a number of which recently ranked highly in the U.S. and Canada Green City Index) participating in the program. A handful more, including a few from the United States, are participating on a limited basis.

Together, municipalities in the MCSP are advancing their broader sustainability agendas. Through the strategic purchase of goods and services, they’re addressing municipal targets around zero waste, climate leadership, local economic development, staff engagement and more.

Webinar: the value of municipal sustainable purchasing programs
And the work is getting noticed. Reeve Consulting, on behalf of the MCSP, was recently invited to deliver a webinar to the Clean Air Council, a group of municipalities in South Western Ontario focused on greenhouse gas reduction.

Examining the value of sustainable purchasing programs, the webinar gave participants a closer look at ways to reduce greenhouse gas emissions through purchasing. For example, buying energy efficient equipment or looking at transportation contracts with reduced emissions.

We’ve included the presentation in its entirety below.

[vimeo http://www.vimeo.com/29971115 w=400&h=300]

Building on the good reception from this webinar, the MCSP will be presenting another webinar October 20. Delivered by Reeve Consulting, the session will be focused on emerging green product specifications for common municipal purchases including cleaning products, paper products, electronics and more.

Next Steps for the MCSP
Municipalities participating in the MCSP are currently measuring their 2011 progress and sustainable purchasing achievements, using the results to develop Action Plans for 2012.

At the same time research is being conducted for the 2011 Municipal Trends Report on Sustainable Purchasing, which is scheduled for release in December 2011 and will build on the 2010 report to provide an updated national snapshot on the state of sustainable purchasing across Canadian municipalities.

Planning is also underway for the 2012 program with several new special projects under consideration to help municipalities deepen the impact of their sustainable purchasing efforts including new staff education and training tools, collaborative verification programs, group subscription benefits to key ecolabeling resources and more.

Looking for more information?
Contact Tim Reeve via email or at 604.763.6829 to get a complimentary pass to an upcoming webinar or to learn more about the program.

October 7, 2011 In Ethical Purchasing, Olympics, Out and About, Sustainable Purchasing

PMAC Symposium bridges the gap for Global Supply Chain Solutions

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What are the key supply chain issues and challenges that are keeping practitioners and academics up at night? This year’s International Symposium on Supply Chain Management brought together a unique blend of professionals from around the world to discuss key issues at the forefront of supply chains and business strategy.

An important aim of the event was to both allow companies to leverage emerging research for supply chain challenges, and provide academics with perspective on the practical application of knowledge in the field.

There was plenty of quality discussion and insights on the evolving field of supply chain management. We picked up on a number of key themes during the event, including the

  1. Responsiveness of supply chains: We heard both from presenters concerned with how to recover from sudden shocks to the supply chain, like those caused by the recent earthquake in Japan, and how to effectively react to pressing humanitarian issues, like famine, by quickly assembling supply chains.
  1. Value in integrating sustainability:  Cynthia Shanahan, Director of Purchasing Resources at McMaster University shared some impressive results and valuable success factors from a recent purchasing initiative with Grand & Toy. The program reduced the delivery frequency from five visits to once per week and replaced cardboard boxes with reusable tote bags (reducing cardboard packaging by as much as 20,000 boxes per year).
  1. Current innovations and strategic issues in Canada: A presentation of particular interest to us was delivered by Bob Armstrong, President of Supply Chain & Logistics Association Canada, regarding an industry-academia-government partnership that produced a complete profile of logistics innovation and global business strategies in Canada.

Bringing together themes of responsiveness and sustainability, our own Tim Reeve presented on his role in the rapid implementation of a sustainable supply chain for Sochi 2014. In the short video below, Tim and Rick Fitch from Fleetwood Metal share why they attended the International Symposium on SCM.

Attendees agreed on the strategic relevance and competitive advantage offered by focusing on sustainable supply chain management. Another message repeated by delegates was the value of collaboration up and down the supply chain for mutual benefit, which we feel particularly applies to sustainability measures.

September 22, 2011 In Ethical Purchasing, Metrics

Key tips & resources for effectively measuring sustainable purchasing programs

Flickr / Pink Sherbert

How many times have we heard it, “You can’t manage what you don’t measure”? It’s  a management consulting mantra that is repeated so often you could almost tune it out.

“Yes, of course” we affirm to our peers and colleagues. But inwardly most of us would agree that developing good key performance indicators (KPI’s) and accurate tracking mechanisms are generally underdeveloped across the triple bottom line, and definitely in their infancy when it comes to sustainable purchasing.

Yet the reality is that metrics are a key success factor in building out a solid sustainable purchasing program, providing a clear indication of program strengths, weaknesses, and by extension, areas for future development and improvement.

Nonetheless, at Reeve Consulting our experience has been that the development and measurement of quality metrics is often overlooked or identified as a future priority.

We know clients face organizational challenges to implementing quality measurement systems, such as a prioritization of policy and procedure at the expense of performance tracking, or difficulty measuring the ‘green-ess’ of products and suppliers, which can be time intensive and confusing. Further, traditional accounting systems often don’t consider sustainability measures.

While we won’t attempt to address all these issues in a single blog post, some of our recent work has us compiling a set of useful resources for developing customized metrics for sustainable purchasing reporting and management systems, both for measuring overall program performance and specific aspects – such as purchasing categories (e.g. vehicles). We’ve shared a collection of these below.

To get started, we’ve also created a short list of key tips for developing effective metrics, which we encourage our clients to consider at the outset.

Key Tips for Developing Effective Metrics:

  1. Link to corporate sustainability initiatives – An important step in customizing a set of metrics is to ensure they are linked to corporate sustainability objectives and reporting systems. For example, if your corporation is concerned with minimizing waste, then sustainable purchasing metrics should include performance measures related to the amount of waste diverted by buying products with reusable or reduced packaging.
  1. Realistic to measure – Also, ensure that you will be able to realistically measure the outcomes of all metrics overtime. Building on the earlier example, if waste reduction is measured at the corporate level, set a metric that requires measurement of packaging reduction in a few product categories, rather than all product categories, the latter being more time consuming and difficult to measure.
  1. Plan to expand – Don’t get bogged down in the development stage by trying to define a comprehensive set of metrics and reporting processes. Plan to expand your metrics and performance reporting with time. Start with realistic metrics to ensure early success in reporting.

 Helpful Resources for Developing Customized Metrics

   Metrics for tracking at the Sustainable Purchasing Program Level

  • The Global Reporting Initiative (GRI) provides high-level performance indicators that have been adopted by many corporations across the globe. You can also view the GRI Product Responsibility Indicator guide HERE. You may want to align your tracking and reporting systems with relevant GRI metrics.
  • Kaiser Permanente, a USA-based healthcare organization that Reeve Consulting has interviewed on a few occasions around their best practices, has recently developed the PS Annual EPP Success Story Achievements document that outlines the metrics they’re tracking and reporting with regards to EPP (environmental preferable purchasing). This includes metrics for vehicles and office IT equipment.

   Metrics for tracking impacts at the Product Level

  • Third-party Ecolabel standards can also be used to identify metrics. For example, the key environmental attributes (e.g. toxicity, material utilization) of the individual standards developed by Canada’s EcoLogo program for different products could be used to determine what you track for specific product categories, such as office equipment, furniture, etc. The Responsible Purchasing Network has outlined a detailed list of other third-party ecolabel standards that you may want to consider.
  • The Responsible Purchasing Network also has a wide variety of calculators that can be used to measure the impacts of your sustainable purchasing practices. They are product specific. It is recommended that you try using existing online calculators to help you measure the impacts of specific product categories as a starting point. For example, they have an Office Electronics Calculator, so you may want to develop metrics for this product category, knowing there is a calculator in place to help you assess outcomes.
  • E3 Fleet Rating is designed to evaluate and recognize performance, and allows fleets to be rated at the Bronze, Silver or Gold level of performance. E3 Fleet Rating uses a point-based Rating System Checklist for rating fleet performance, with points for fleet management practices and energy/emissions performance.
  • Look to your suppliers to help develop reasonable metrics. Many of your suppliers may already be tracking the environmental impacts of their products. Consult them to learn what data they can provide and then set metrics related to this data. For example, Cascades is tracking valuable data related to their paper products (e.g. tissue) that could be used to measure the impacts of buying more green cleaning products. As the following link shows, Cascades can provide data for water usage, recycled content in packaging, reduction in the use of trees, etc. that is related to the products they manufacture. Click HERE for details.