RS Group & More On The Future of Sustainable Procurement
Supply chain sustainability is swiftly becoming a critical focus for industry leaders, with increasing attention on Scope 3 emissions and electrification.
A report from Accenture revealed that supply chains contribute to around 60% of global carbon emissions, and half of all CEOs now consider supply chain responsibility a fundamental aspect of their sustainability strategy.
In this context, it's encouraging to see industry leaders and competitors collaborate to discuss the pivotal role of procurement and supply chains play in sustainability.
The “Supply Chain of Tomorrow” panel discussion, hosted by RS Group and moderated by Andrea Barrett, the company’s VP of Social Responsibility and Sustainability, highlighted the importance of cross-industry collaboration to achieve ambitious but necessary climate goals.
Sustainability within procurement
Helen Alder, Head of Knowledge and Learning Development for The Chartered Institute of Procurement & Supply (CIPS), opened the discussion on sustainable procurement.
She emphasised the challenge of integrating sustainability into procurement processes, particularly in evaluating options with embedded carbon and Scope 3 emissions.
“The challenging bit is still around the sustainability assessment and the decision-making of, which one do you pick? Because there are so many dilemmas, in terms of embedded carbon.
“For instance, is it better to keep an old piece of capital equipment running, or is it better to scrap it and buy something new that uses less energy and might have much lower running costs?”
She noted that this decision could vary widely among businesses, but tools such as the CIPS Procurement Supply Cycle assist in this integration
Siemens’ Net-Zero Supply Chain Framework
Katharina Raimann, Sustainability Manager at Siemens, detailed the company’s framework to achieve a net-zero supply chain by 2050.
“At Siemens, we conduct various external sustainability audits with our main suppliers. We have an internal mechanism and collaborate with external audit companies to ensure compliance with our Code of Conduct.
“We have developed a framework where each Siemens supplier, over 65,000 in total, receives a sustainability score that can be directly translated into our total cost of ownership analysis.”
She explained that the framework prioritises sustainable sourcing, employee empowerment, external audits, and the integration of sustainability into sourcing decisions, leveraging technological advancements and training initiatives.
“How can we empower our people to embed sustainability in the processes? How can we utilise the extensive knowledge our colleagues have built up over the years to succeed in this endeavour?” Katharina added.
Sustainable packaging and logistics
Carolyn Park, VP of Group Supply Chain at RS Group, discussed the company’s efforts to measure packaging intensity, recycled content, and recyclability.
The initiatives include transitioning to brown cardboard with higher recycled content and adopting paper-based systems. RS Group has introduced sustainable totes to replace cardboard within Europe, promoting reuse and waste reduction.
At its Nuneaton centre, initiatives to eliminate plastic waste fostered company-wide engagement — including crafting an elephant out of plastic to highlight the issue.
Helen described how one attempt to reduce plastic waste inadvertently led to more landfill. The company’s textbooks, left on doorsteps in bad weather without plastic coverings, were often damaged and discarded. As a result, the company reverted to using plastic packaging for that product, emphasising the need for case-by-case assessments.
Glynn Hobbs, Logistics Territory Director UK&I at Schneider Electric, emphasised life-cycle sustainability across product design, production, and disposal, focusing on repurposing and recycling.
“I think utopia looks like almost local manufacturing in a local market,” he stated. “But in an industry with global product ranges, that’s not practical. So instead, we need to think about stocking the right things in the right places for the right markets.
“Do we need to shift more to a Made to Order profile, which has different implications for lead time, distribution, and transportation? All of these factors present challenges, particularly concerning sustainability.”
The path forward
The panel underscored the crucial role of collaboration in advancing sustainability practices, as Andrea highlighted RS Group’s efforts to standardise sustainability frameworks, promoting transparency and trust in green claims.
She described her role in the value chain as a "facilitator" for sustainability discussions, stressing the need to "break down competitive barriers to share insights and learn."
The discussion highlighted a multifaceted approach to building sustainable supply chains for the future, with panellists agreeing on the necessity of continuous improvement and transparent communication in sustainability efforts.
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