Unit 6: Responsible Tourism Supply Chains

UNIT 6. RESPONSIBLE TOURISM SUPPLY CHAINS

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Unit outline

ObjectivesBy the end of the unit participants will be able to:• Understand the mechanics of supply chains and the

importance of building sustainability in the supply chain

• Develop a sustainable supply chain policy and action plan

• Implement a supply chain sustainability assessment• Identify strategies to support suppliers to meet

supply chain sustainability goals• Understand how to monitor the sustainability

performance of the supply chain and support continuous improvement

Topics1. Introduction to

responsible tourism supply chains

2. Sustainable supply chain policy development and action planning

3. Raising awareness and supporting suppliers to meet sustainability targets

4. Monitoring and evaluate sustainability performance

TOPIC 1. INTRODUCTION TO RESPONSIBLE TOURISM SUPPLY CHAINS


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What is a supply chain?

• The system of moving of a product or service from supplier to customer

• Results in natural resources, raw materials, and components being transformed into a finished product

• Tourism supply chains involve core and ancillary tourism goods and services

• The final product purchased in a general tourism supply chain is the holiday

Picture sources:vov.vn/Uploaded/VietHoa/2012_11_21/Bieu%20dien%20van%20nghe.jpg

http://sinhcafe.com/photo_north/Maichau/maichau_hoabinh_trekking_adventuretoursdotvn.jpghttp:// www.schoolanduniversity.com/images/page_uploads/Food-and-beverage-Management.jpg

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© 2003 Richard Tapper, Environment Business & Development Group

The key actors in tourism supply chains

Picture source:http://piboonrungroj.files.wordpress.com/2011/07/slide03.jpg

The tourism sector supply chain

Two compelling reasons why we need sustainable supply chains in tourism

Consumers expect it You are eroding

your core product

Some other good reasons to develop a sustainable supply chain

• Improved profile / brand• Improved market access• Increased operational effectiveness • Increased sustainability

Some common sustainability issues in tourism supply chains

ECONOMIC PERFORMANCE ISSUESEmployee wages and benefitsLocal purchasingRevenue leakageLinkages with local suppliers and subcontractorsCorporate responsibility-related payments

SOCIO-CULTURAL PERFORMANCE ISSUESGeneralEqual opportunities and non-discriminationHuman rights (including combatting sexual exploitation of children)

WorkplaceWorkplace conditionsLabour relations (fair wages, job security, working hours etc)Health and safetyTraining and educationChildren in the workplace

Suppliers and subcontractorsLabour relations and human rights practicesContracting with small and micro-enterprisesRespect for rights of ethnic and minorities and of local communities

CommunityTraditional rights and freedomsLocal consultation and participatory decision-makingContribution to community developmentEconomic linkages with local communities

ENVIRONMENTAL PERFORMANCE ISSUESEnergy useWater useWaste managementWastewater managementContributions to biodiversity and nature conservationChemical useEmissions (CO2, ozone depleting substances)Land conversionAir, water and land pollutionToxicity of materials and products usedPurchasing guidelinesBuilt environment (including protection of architectural, historical and archaeological heritage)Environmental management system

Source: Tour Operators’ Initiative for Sustainable Development (TOI) 2004, Supply Chain Engagement for Tour Operators: Three Steps Toward Sustainability, TOI, France

93% of your supply chain is invisible –and why this matters to you!

• Most supply chains today are so complex that companies don’t know exactly what’s happening in them

• Poor practices in the supply chain can result in serious risk and reputation issues, legislation and litigation issues and lawsuits for false claims relating to human and environmental issues

• The impacts of poor practices by others can and will eventually affect you

Source: Rowe A. 2013, ‘93% of Your Supply Chain Is “Invisible”’, Network for Business Sustainability, Available [online]: http://nbs.net/knowledge/93-of-your-supply-chain-is-invisible/, Accessed: 09/02/2014

The function of making tourism supply chains more sustainable

• Recognises sustainability goes beyond the company

• Uses the power of policies and contracts combined with b2b support to create positive change

• Requires working with suppliers to achieve positive financial and sustainability performance

• Is grounded in the principles of responsible tourism

Healthy communities

Natural environment

Economic vitality

SUSTAINABLETOURISM

Example: Putting responsibility into a component of a tour operator’s supply chain

TOUR OPERATORHotel

RestaurantDairy suppliers

Fruit & vegetable suppliers

Canned goods suppliers

Others

Attractions

Others

Tour operator• Uses local destination guides• Employs local staff• Recycles• Informs guests of sustainability

issues• …

Restaurant• Employs local staff• Sources sustainable food• Implements Fair Trade• Supports local sustainability

projects• Pays fair salaries• …

Suppliers• Grow food organically• Do not sell endangered

animals• Have good working

conditions• …

Example of simple restaurant supply chain

Picture sources:http://www.hoianworldheritage.org.vn/uploads/news/rautraque.gif; http://

www.vinacorp.vn/Content/ckfinder/userfiles/images/bia(1).jpg; http://images.vietpress.vn/Images/Uploaded/Share/2013/09/23/93.jpg; http://www.vinachem.com.vn/TCTYHC/GifAdv/Ninh_binh/san_pham.gif; http://newworldvn.vn/hinh-anh/images/the gioi-moi/ao-ghe-nha-hang-khach-san.jpg;

http://www.stevina.vn/uploadfiles/product/C%C3%A2y%20gi%E1%BB%91ng%202.JPG; http://dantri4.vcmedia.vn/2togCcWP25hx4bn5VbuB/Image/2013/11/anh-minh-hoa-cdac7.jpg; http://www.dunghangviet.vn/uploads/content/2012/04/05/thanh-loc-rau-qua-truoc-khi-xuat-khau-0386.jpg; http://eventsnpromotions.com/wp-content/uploads/2012/12/photodune-1735309-waiter-with-champagne-xs.jpg; http://dantri21.vcmedia.vn/Ic3EyFHpPWFvMJOJFocc/Image/2013/03/Rau-cu-qua-luoc634814061593253822-6bfaf.jpg;

http://www.vanderree-transport.nl/Afbeeldingen/Wallpapers/ Van%20der%20Ree%20Transport%20(1).jpg; http://images.theage.com.au/2012/10/22/3733553/aw-Machi-20Japanese-20Resturant_20121022110825341796-360x0.jpg

Fruit & vegetables ingredients

Meat ingredients

Table linen

Beverages

Restaurant

Dairy farm

Market Freight Fruit & veg farm

Seeds

Fertiliser, pesticides, etc

Freight ButcherDeli or market

Seeds

Fertiliser, pesticides, etc

Freight Cottonfarm

Linenstore

Processingfactory

Processingfactory

Fertiliser,feed, etc

Retailers, Distributors, Manufacturers, Producers

RESTAURANT / CONSUMER RETAILER DISTRIBUTOR, MANUFACTURER, PRODUCER

Direct suppliers Indirect suppliers

TOPIC 2. SUSTAINABLE SUPPLY CHAIN POLICY DEVELOPMENT AND ACTION PLANNING


The importance of having a sustainable supply chain policy in tourism

SUSTAINABLE SUPPLY CHAIN

POLICY

Defines company sustainability position• Establishes the goals /

targets for supply chain and supplier sustainability

Prioritises issues• Identifies the specific

areas of sustainability action that are most important

Ensures correct action• Combined with procedures

policies make sure sustainability actions are effective and do not erode sustainability goals

Defines training requirements• They help identify skill and

technology gaps and areas in which capacity building in sustainability topics can be implemented

The benefits of having sustainable supply chain policy in tourism

•Helps defend a company from legal disputes•Demonstrates company commitment to sustainability•Promotes support of suppliers to achieve sustainability objectives

•Create greater stability and consistency in supplier sustainability actions resulting in the faster achievement of sustainability objectives

TOPIC 2 TOPIC 3 TOPIC 4

The key steps to developing a sustainable supply chain

Understand where you areConduct a baseline study to understand the sustainability of your

existing supply chain

Conducting a sustainable supply chain baseline study

What is it?The process of researching the current level of sustainability of suppliers with the goal of identifying sustainability gaps and developing sustainability targets for improved performance

Benefits Helps find sustainability gaps Determines the extent and type of

current behaviour/practices in sustainability

Determines attitudes towards sustainability

Determines current indicator levels (before intervention)

Assists establish and prioritise sustainability policy areas/ objectives

Provides a means to set realistic sustainability targets and measure progress

The key steps in implementing a baseline study

A. Build a management

team

B. Develop baseline

assessment methodology and

approach

C. Develop assessment

criteria

D. Implement baseline study,

review and evaluate results

A. Building an effective management team

• Representation: Involve representatives from different internal departments and suppliers

• Knowledge and experience: Ensure participants have good knowledge of key operational areas and experience or understanding of sustainable tourism

• Organisation: Appoint a “policy sponsor” or “leader” for overall responsibility / ownership in developing and managing the policy


• Provide resources and top-level support for the program

Company Board

• Use sustainability performance as a factor in selecting suppliers

• Incorporate sustainability clauses into contracts with suppliers

Contracting director & Managers

• Discuss sustainability issues and the company program as part of regular contacts with suppliers

• Provide feedback and continuous follow-up with suppliers

• Facilitate dissemination of policy and training and awareness materials

• Identify new local suppliers entering the tourism sector Destination

Managers & Representatives

• Incorporate sustainable action plans into job description and staff appraisals

Human Resources Director & Department

• Provide legal advice on wording, inclusion and enforcement of sustainability clauses in suppliers’ contracts

Legal Advisers

• Develop marketing plan to reflect company’s sustainable supply chain strategy

• Provide incentives to sustainable suppliers with additional promotions

Marketing Director & Department

• Examine the cost implications of the sustainability- induced changes required in the supply chain and their impact on prices

Production Department

• Monitor quality and health and safety standard of suppliers

• Incorporate sustainability performance issues into monitoring of suppliers

Quality & Safety Department

• Provide day-to-day management and coordination of the program

• Offer advice on sustainability issues, technical supports, etc…

Sustainability Unit

• Provide assistance in development of training programs for staff and suppliers on sustainability issues

Communications/ Training Unit

Role of key departments in sustainable supply chain policy development

B. Developing a baseline assessment methodology and approach

• What information is required?

• Who will collect it?• How will we collect it?• When will be collected?• Are there any issues will

affect progress?In-depth interviews

Written questionnaire

Supplier documents & data

Picture source:http://sisnwinc.com/wp-content/uploads/2013/05/documents12001.jpg

C. Establishing sustainability criteria

• Define conditions or measures forevaluating sustainability

• Cover environmental, social, and economic aspects

• Gauge suppliers’ level of awareness of sustainable tourism

• Determine supplier desire and capabilities to implement sustainable tourism principles and practices

• Identify potential barriers to the implementation of good practices

Examples of economic sustainability assessment criteria for suppliers

Supplier pays above minimum wages

Supplier implements strategies to avoid revenue leakages from local economy

Supplier has policies on the purchase of local products and services

Supplier pays / charges fair prices to producers

Supplier economic sustainability assessment criteria

Others?

Examples of environmental sustainability assessment criteria for suppliers

Supplier implements strategies to reduce waste

Supplier implements strategies to recycle products

Supplier implements strategies implements strategies to educate visitors and staff on importance of natural environment and sustainability issues

Supplier environmentalsustainability assessment criteria

Others?

Examples of social sustainability assessment criteria for suppliers

Supplier has contracts for all workers

Supplier adheres to health and safety guidelines

Supplier implements ongoing workplace training programme

Supplier provides visitor codes of conduct to guests

Supplier socialsustainability assessment criteria

Others?

Using Green Lotus criteria to create a supplier sustainability checklist

SUSTAINABILITY CRITERIA EXISTS IMPLEMENTATION LEVEL (1 low -10 high)

A Sustainable

A1.4 Availability of annual plan on implementation of social and cultural activities (both inside and outside of the tourist accommodation establishment) 10

A2.2 The staff are trained on cultural and social issues (once a year) 6

B Maximise socio-economic benefits for local society

B2.1 Availability of policies on recruiting local people, people from remote regions and less developed economic regions 0

B3.1 Priority in usage of locally made products or local raw materials without exhausting natural resources 0

B5.2 Availability of policies to support female employees (maternity, training, consultation on reproductive health, etc.) 3

C Minimization of adverse impacts on cultural and natural heritage

C2.1 Expression of local culture and traditions in the tourist accommodation establishment’s architecture, activities and services it provides 4

D. Implementing baseline study, reviewing and evaluating results

1. Implement the baseline study according to plan and evaluation criteria

2. Analyse results to understand:– Areas where suppliers are performing sustainably– Areas where improvements can be made– Which companies show most interest in improving sustainable– Level of companies’ capacity to improve sustainability– Opportunities to improve sustainability performance in companies

3. Prioritise suppliers to work with on achieving greater sustainability

Developing a responsible supply chain policy and procedures

• Sustainability standards / criteria for selecting new suppliers

• Sustainability performance standards for existing suppliers to improve sustainability

• Promotional opportunities and incentives• Instructions for the monitoring, reviewing

and reporting on progress made on improving sustainability in the supply chain

Effective policies and procedures…

• Set the vision

• Reflect current performance

• Meet government requirements

• Identify performance areas

• Offer flexibility

• Are mutually agreed upon

Example of responsible supply chain policy statement

A1 Tours recognises that our social, economic and environmental impacts reside as much in our supply chain as in our own activities. In our supply chain A1 Tours will ensure that our suppliers are:

• Aware of the specific environmental, social and economic issues, risks and opportunities relevant to their operations and products

• Ensure they operate to internationally recognised standards of practice• Ensure systems implemented deliver effective performance

management and improvement

A1 Tours Responsible Supply Chain Policy Statement

Example of responsible supply chain procedures

In order to develop a sustainable supply chain, A1 Tours will:

1. Take a leadership role in sustainable supply chain management2. Screen suppliers for their performance in social, economic and

environmental issues management3. Support suppliers to improve sustainability performance4. Set minimum performance standards5. Consult with stakeholders6. Monitor compliance to agreements7. Terminate business relationships if performance remains below

standard or suppliers are unable or unwilling to work towards performance targets

A1 Tours Responsible Supply Chain Procedures

Other provisions that can support a sustainable supply chain policy

COMPANY PROCUREMENT POLICY• Internal policy specific to how company staff

contract suppliers (“services”)• Can also include purchase of “goods”• Can include sustainability selection criteria for

procurement of goods and services as a part of other broader requirements

SUPPLIER (“VENDOR”) CODE OF CONDUCT• Specific for contracted suppliers• Should set out social, economic and

environmental expectations of suppliers• Typically voluntary

COMPANY SUSTAINABLE SUPPLY CHAIN POLICY

INTERNAL EXTERNAL

supported by

For ensuringsustainable suppliers

are selected

For ensuringsuppliers act sustainably

supported by

The InterContinental Hotel Group’svendor code of conduct

Source: http://www.ihgplc.com/index.asp?pageid=920

Setting sustainability standards and targetsfor the supply chain

• Standards provide specific requirements for the achievement of a desired action

• Targets are based on the standards and enable benchmarking and the measurement of success

• Standards and targets help identify where improvements need to be made

• In a sustainable supply chain standards and targets should be set based upon the 3 pillars of sustainable tourism (economic, environmental and social sustainability) and address the key sustainability issues (identified in Topic 1)

General principles of good sustainability standards and targets

• Standards may be either performance-based, process-based, or both

• Targets should be high but achievable

• Standards should be flexible

• Targets should be SMART (Specific, Measurable, Achievable, Realistic and Time-specific)

Broader supply chain targets vs. Individual supplier targets

Individual supplier standards & targetsThe level of improvement for individual suppliers in key areas

Broader supply chain standards & targetsThe overall number or percentage of suppliers that are to meet the given standards in a period of time

Supplier A Supplier D

Supplier FSupplier E

Supplier B Supplier C

HOTEL, TOUR OPERATOR, RESTAURANT ETC

SUPPLYCHAIN

Individual supplier standards & targetsThe level of improvement for individual suppliers in key areas

Example of supplier target compared to a supply chain target

YEAR 1

50% of all suppliers have a formal employment contracts and position

descriptions for all their staff

YEAR 2

100% of suppliers have formal employment contracts and position

descriptions for all their staff

SUPPLY CHAIN TARGETS

SUPPLIER TARGET

All employees within the organisation have a formal employment contract and position descriptions within 2 years

Influences on the setting and achievement of sustainability targets

INFLUENCES AFFECTING SETTING & ACHIEVEMENT

OF TARGETS

SUPPLY CHAIN SUSTAINABILITY

TARGET

Type, severity and source of sustainability

impact

Available sustainability standards for each

impactSupplier’s capacity

Organisation’s ability to influence the supplier

Examples of broad supply chain sustainability standards and targets

SUSTAINABILITY STANDARD (CRITERIA)SHORT TERM

(1 YEAR)

MEDIUM TERM

(3 YEARS)

LONG TERM (5 YEARS)

ECONO

MIC

Suppliers pay above minimum wages 10% 50% 100%

Suppliers have policies on the purchase of local products and services 30% 100%

Suppliers implement ongoing staff development training programme 5% 15% 70%

… … … …

ENVIRONMENTAL

Suppliers implement strategies for responsible use of electricity 10% 30% 80%

Suppliers implement strategies for responsible use of water 10% 30% 80%

Suppliers implement strategies to reduce waste 30% 50% 100%

Suppliers implement strategies to recycle products

Suppliers promote visitor codes of conduct for interacting in the destination 25% 50% 100%

… … … …

SOCIA

L

Suppliers have policy on equal opportunity and gender equality 20% 60% 100%

Suppliers have formal employment contracts covering all staff 30% 50% 80%

Suppliers implement health and safety guidelines 25% 50% 100%

… … … …

WHOLE SUPPLY CHAIN TARGET

Sustainable supply chain action planning

• Sets out the activities and resources required to support suppliers to meet sustainability standards and targets

• Requirements:– Participation and agreement– Understanding of standards– Adequate resources including

knowledge and skills

The TOI’s tips for effective sustainable supply chain action planning

Involve suppliers incrementally

Plan for different rates of supplier progress

Focus on continuous improvements

Work with other partners in the same destination


Example of responsible supply chain action plan

Environmental Action / Initiative Responsibility Start date Finish date Status/ Date achieved

Conduct sustainability audits of suppliers giving priority to more accessible suppliers

John Smith Oct 2013 Jan 2014 Underway

Assist hotel suppliers conduct waste quick scans Mary Munroe Feb 2014 Aug 2014 Not started

Develop a supplier code of conduct and procurement policy to support the sustainable supply chain policy

Peter Pan Jan 2013 Feb 2013 Completed

Implement a sustainable supply chain training programme for key suppliers

Greg Matthews Apr 2013 Aug 2013 Completed

…

In progress/achieved In progress / risk of not being achieved Not achieved

Contracting or amending supplier contracts

• Cannot fully achieve a sustainable supply chain without including sustainability issues into contracts and altering procurement practices

• Good sustainable supplier contracts:– Are gradually introduced after a period of voluntary

improvement– Clearly highlight the importance of sustainability to the

supplier– Establish minimum performance standards and optional

criteria– Are supported by performance checks

Key steps in developing a sustainable contracting system

•Develop approach and procedures for implementation of sustainability performance as a contracting criteria•Draft contractual clauses for minimum performance requirements•Establish procedures for supplier non-compliance•Appoint a staff member to manage sustainable supply chain activities

TOPIC 3. RAISING AWARENESS AND SUPPORTING SUPPLIERS TO MEET SUSTAINABILITY TARGETS


The importance of awareness and support in developing sustainable supply chains

• Develop sustainability messages• Communicate sustainability

messages to suppliers

Raising awareness creates understanding, participation

and commitment

• Provide training, information, networks, assistance

• Offer incentives and rewards

Providing support promotes action

Developing awareness raising messages on sustainability

SUSTAINABILITY MESSAGES

Reflect baseline study results

Select appropriate

dissemination channels

Establish partnerships

Keep messages simple

Inform about overall

programme

Communicating messages about broad sustainability issues

Match communication methods to

characteristics of suppliers

Prioritise personal communication

Keep communication constant with regular

updates

Encourage feedback

Monitor responses and support continuous

improvement

Awareness raising channels relevant to developing a sustainable tourism supply chain

Meetings and workshopsGather relevant suppliers together to communicate about the sustainability supply chain programme and new or amended policies.

Newsletters, brochures & flyersInform suppliers and others about the new or amended policy through your organisation’s print promotional material such as newsletters, flyers and brochures. It’s also good for your customers to read.

WebsiteCreate a section on sustainability in the company website to communicate responsible tourism policies and actions. Great for suppliers and customers.

EmailDeliver information about the sustainability program directly to the mailbox of the supplier. Coming from senior management can add a level of authority. Quick and direct.

Picture sources:Pixabay, http://pixabay.com/

Principles of effective awareness messages

grab

atte

ntio

n!

HEART

HEAD

CALL TOACTION!

Be consistent

communicateBENEFITS

Communicating the new sustainable supply chain policy: Key information to deliver

Sustainability policy / Code of Conduct etc

•The original policy / procedures / code etc in full

Background

•Explanation of comprehensive development process adopted

Purpose•Importance about why the sustainability programme is needed

Affectedstakeholders

•Indication about who the Policy, Code etc affects

Benefits & incentives

•What the direct and indirect benefits of adoption will be

Implementationplan

•What the company will do next to instigate the sustainability programme

Furtherinformation

•Where to obtain further information (or from who) and how

Providing support to meet sustainable supply chain goals

• The process of businesses helping businesses is often referred to as b2b (“business to business”) exchange

• b2b exchange refers to the dialogue and actions that take place between companies to create mutual benefits and gains

• b2b exchange is a good way to foster sustainability improvements in tourism supply chains because:– You have an intimate understanding of

your consumers– You have access to technology and

information– By helping your suppliers you are helping

yourself

ORGANISATION SUPPLIER

Awareness raisingCapacity building

Incentives

Improved & more sustainable goods & services

B2BEXCHANGE


Supporting tourism suppliers through capacity building

Mentoring

Fam trips

Networks

Training

Information resources

The TOI’s recommendations on incentives for suppliers to meet sustainability goals

• Suppliers need to be convinced of the advantages of taking sustainability measures

• Recognition and rewards help foster positive action

• Develop a “preferred supplier” scheme for suppliers that meet sustainability goals which offers benefits such as:

Higher rates Longer-term contracts Committed guarantees Joint marketing

agreements More brochure space Joint promotional

activities Favoured status in system

sales searches


TOPIC 4. MONITOR AND EVALUATE SUSTAINABILITY PERFORMANCE



The steps involved in a supply chain sustainability evaluation

Decide what you are monitoring

Let your suppliers know about the monitoring programme

Evaluate and assess your suppliers’ performance

Tell your suppliers how they are performing

Foster continuous improvement

1 2 34 5


1. Establishing sustainability criteria for the evaluation

• Review results of baseline study• Use the sustainability standards and targets that

have been established ensuring the targets are:– SMART– Prioritised– Applied incrementally– Written as short statements that require either an

absolute figure, a relative figure, or a simple “yes/no”

The 3 main types of indicators

Performance

•Reflect changes in outcomes

•E.g. The number of employees with formal employment contractsProc

ess

•Reflect changes in commitment

•E.g. The presence / absence of a minimum wage policy

Perception

•Reflect changes in attitude

•E.g. The percentage of suppliers that believe their sustainability activities have improved community livelihoods

Source: UNWTO & SNV Netherlands Development Organisation 2010, Manual on Tourism and Poverty Alleviation – Practical Steps for Destinations, UNWTO & SNV Netherlands Development Organisation, Madrid, Spain

INDICATOR

2. Communicating the sustainability monitoring programme and criteria

• Use standard communication approaches• Ensure the message content includes:

Benefits and consequences

Evaluation criteria

Definitions

Criteria calculation

methodology

Example of letter communicating a sustainability supply chain programme

Dear supplier,

Thank you for agreeing to work with us to improve your sustainability performance. Consumers and governments alike are demanding greater sustainability and we believe that by starting now you and us will be ahead of the competition and also prepared for potential increased government regulations in the future. At a more direct level, we also believe our sustainability standards will provide immediate benefits to you in the form of improved worker performance, enhanced reputation and cost savings through greater efficiency….In order to measure the success of the programme we need to ensure our suppliers are meeting our supply chain sustainability standards. The key sustainability criteria we shall be monitoring of our suppliers include:

Our supply chain manger will contact you to review the progress quarterly, and kindly request your participation in providing evidence of performance to meet criteria such as power and water bills, action plans, policy documents……

SUSTAINABILITY CRITERIA UNIT OF MEASURE TARGET

SOC

Supplier has policies on the purchase of local goods and services

Formally approved company policy document

1 local procurement policy developed and approved within 6 months

Supplier provides employment contracts for all staff

Formally approved worker contract documents

50% of workforce have employment contracts in 6 months, 100% in 1 year

ENV


Formally approved action planEvidence of waste management activities

At least 3 activities are undertaken in 6 months; 10 activities completed in 1 year

… … …

Criteria

Benefits

Calculations

Implementation,responsibilities

3. Conducting the sustainability evaluation

• Evaluate suppliers based on the size of the organisation and its supply chain and available resources, can be:1. Organisation led2. Contracted 3rd party3. Supplier self-evaluation

• Collect information from suppliers and compile into a spreadsheet table for easy analysis

• Examine results to review performance for:– Individual suppliers to meet supplier

targets– Combined results to meet supply chain

targets

ORGANISATION

SUPPLIER

3RD PARTY EVALUATIONMETHODS

Example results of a supply chain sustainability assessment

SUSTAINABILITY CRITERIA UNIT OF MEASURE TARGET

SUPPLIER

A B C D E F G H I

Supplier has policies on the purchase of local goods and services

Formally approved company policy document

1 local procurement policy developed and approved within 6 months

Yes YesDrafted but

waiting approval

Not started Not started YesDrafted but

waiting approval

Yes Not started

Supplier provides employment contracts for all staff

Formally approved worker contract documents

100% of workforce have employment contracts in 1 year

20% 50% 90% 0% 10% 0% 30% 100% 50%


Evidence of waste management activities

10 initiatives completed in 1 year 4 6 6 2 4 0 6 6 4

… … … .. .. .. .. .. .. .. .. ..

Individual supplier performance assessment Poor Average Good Poor Poor Poor Poor Excellent Average

PROCUREMENT POLICIESNO.SUPPLIERS

Approved local procurement policies 4Draft local procurement policies 2No local procurement policy 3TOTAL 9

EMPLOYMENT CONTRACTSNO. SUPPLIERS

75%-100% of staff in employment contracts 250%-74% of staff in employment contracts 225%-49% of staff in employment contracts 10%-24% of staff in employment contracts 4TOTAL 9

WASTE MANAGEMENTNO.SUPPLIERS

>5 waste management activities 4<5 waste management activities 40 waste management activities 1TOTAL 9

Individual supplier assessment

Supply chain assessment

4. Providing feedback to suppliers on performance

• Write a performance report for each supplier• Use a simple and easy to understand format• Highlight the positives• Provide encouragement for progress

(even if target has not been achieved)• Provide a conclusion and implications for action

Example of presenting sustainability assessment results of a supply chain

44%

22%

33%

Suppliers with local procurement policies

Approved local pro-curement policiesDraft local procurement policiesNo local procurement pol-icy

22%

22%

11%

44%

Suppliers with staff in formal employment contracts

75%-100% of staff in employment contracts50%-74% of staff in employment contracts25%-49% of staff in employment contracts0%-24% of staff in employment contracts

44%

44%

11%

Waste management initiatives in 2013

>5 waste management ac-tivities<5 waste management ac-tivities0 waste management activ-ities

5. Ensuring continuous improvement in sustainable and responsible purchasing

Keep support targeted

Look forward to each assessment

period

Finally, provide ongoing support to

suppliers to help them meet

sustainability goals

Finally, provide ongoing support to suppliers to help

them meet sustainability goals

Xin trân trọng cảm ơn!Thank you!

Unit 6: Responsible Tourism Supply Chains

Travel

sustainable supply chains

general tourism supply

supply chain engagement

tourism sector supply

mechanics of supply

sustainability performance

tourism consumers

business sustainability