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 Working with suppliers for shared gain
What's the Point?  Living Proof  How to do it
 Union Coffee Roasters

Union Coffee Roasters is a small London based company that seeks out growers of truly fine coffees and rewards them with a direct and sustainable business relationship. All suppliers must adhere to the international and national laws regarding the conditions of workers - from health and safety regulations to the provision of social services, education, and payment of the minimum wage.

They must also respect the environment and have pre-defined, sustainable agricultural practices in place to conserve water, soils and energy and to reduce pollution. In return, Union Coffee Roasters purchase the coffee at an enhanced sustainable premium.

The Results

All parties benefit. Customers get the highest quality product. Suppliers have a long term sustainable business agreement and their employees enjoy good working conditions. Environmental conditions on the coffee estates are improved, while Union Coffee Roasters itself gets committed suppliers, better quality coffee, and a customers who share their social and environmental principles.

 Who else is making a point?

Many other companies throughout the UK understand the real business benefits that can be gained by establishing better relationships with their suppliers. Here are just two:

The booksellers Waterstones collaborated with the publishers, Macmillan Distribution, and the distributors, Securicor Omega Express, on an environmental supply chain initiative. The aim of the initiative was to design a reusable tote box to replace the cardboard cartons used to transfer books to Waterstones

The results: This highly successful supply chain initiative has reduced the need for 21,720 cardboard boxes; saved 15 tonnes of waste; reduced infill packaging by 95%; reduced stock damage; and increased the speed of handling goods.

The UK food retailer Waitrose has long established principles of supplier care based on a genuine spirit of partnership embedded in its constitution. This requires suppliers to be treated with honesty, fairness, courtesy and promptness. Suppliers must manage sub-suppliers in a similar way. Waitrose also operates a Responsible Sourcing Programme which takes account of environment, health and safety, workers' rights and animal welfare throughout the supply chain.

The results: All parties benefit from being part of a socially sustainable relationship. Suppliers are paid a fair price that reflects the costs of production. Customer, employee and other stakeholder relations have been enhanced and Waitrose has been commended for its long term support of suppliers. Farmer Brian Barnett is typical of many suppliers when he says "It's good to be working with a supermarket that is actively supporting farmers. Farmers supplying Waitrose can be sure of a fair price and continued support in a very difficult climate".

 Why is this important?
  • In an Envirowise supply chain partnership project, eight host companies working in partnership with 120 companies from their supply chain identified potential savings of more than £1.9 million. Source: Envirowise News, The Profit of partnership
  • Communities, business and government can increase, even double, the amount of money being retained in the local economy of disadvantaged urban and rural areas by fostering links in the local business supply chain.  Source: "The Money Trail" by New Economics Foundation (NEF) and the Countryside Agency
  • Supply chain pressure has been a significant factor influencing environmental and quality issues (in SMEs), and is showing signs of influencing the social domain as well. Source: Starting Small, Europe's SMEs and social responsibility, CSR Magazine (CSR Europe)
  • Late payment of suppliers is viewed as 'unethical' by 85% of UK businesses. Source: Survey conducted by the Better Payment Practice Group

 

 Download the how-to guide in Full

Each 'How-To' briefing is available in pdf or word formats. To read the PDF document with a screen reader please link to the Access Adobe website which provides useful tools and resources. Adobe also has a free online conversion tool for PDFs.

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