• Introduction
• Our Values
• Our Approach
  • Stakeholders
  • Policies
  • Governance
  • Data & reporting
• Environmental Stewardship
  • Case studies
• Community Impact
  • Case studies
• Responsible Sourcing
  • Case studies
• Workplace Culture
  • Case studies
• Our Performance
  • Data & reporting
  • Targets & reporting
• Our Partners

During the second half of 2008 the group created an embryonic central procurement function to identify and deliver cost savings and service benefits that could be derived from centralising certain aspects of purchasing. The initial scope was limited to non produce procurement and was focussed on categories such as energy, packaging, consumables and site services.

Over the course of 2009 a small group of 'core' suppliers emerged out of this process. The group wished to develop long term, partnership relationships with these suppliers that had been identified as having the potential to add value to the business.

With closer supplier relationships comes additional responsibility for the conduct of those suppliers and the consequences of their actions which led the group to conclude that a more formalised approach to managing these relationships was required.

The result has been the creation of a Supplier Management Programme, designed to increase transparency and improve communication between the group and its core suppliers. Each relationship is guided by a non contractual Service Level Agreement, drawn up collaboratively, which sets out the responsibilities of both parties and the mechanisms for dealing with business issues when they arise. Additionally, suppliers' production sites are audited by qualified Produce World staff against the standards the group sets itself for labour standards, health and safety and environmental management. Suppliers who pass the audits are formally accredited whilst those that fail or who have major non conformances are given support by the group in order to achieve compliance.

The programme provides benefits and reassurance for both Produce World and suppliers. Produce World gains the confidence that it is working with businesses that share its social and environmental values and behaviors whilst the suppliers feel valued and respected.

Richard Hartley, Operations Director of ASP Packaging, feels that his business has benefitted from working with Produce World on the programme:

"From ASP's perspective, the Produce World Supplier Management Programme has been an excellent initiative. The development of a longer term relationship has engendered trust and allowed a wider commercial perspective to be taken from which both parties can benefit. In particular, it has driven good practice with respect to purchasing allowing improved forecasting of raw material requirements with significant cost savings for Produce World. It has also spurred longer term packaging development projects at ASP which Produce World will have first benefit of. Whilst the auditing process was robust and thorough, it has ensured a level playing field for all. It was approached in a very constructive manner by Produce World which facilitated the sharing of best practice and inspired those responsible within ASP. This drove change and has led to direct, tangible benefits to our business."

The group has now accredited its core packaging and LPG suppliers and is planning to extend the programme throughout the group procurement supply chain.