Supply management

The status among existing suppliers regarding the implementation of Environmental Management Systems as well as the scoring points have improved substantially since the start in 1996. However, the questionnaire on which the system is based cannot it itself force the environmental development of the individual supplier. It is rather meant to “take the temperature” of the present environmental management within the supplier company. To bring about actual measures, the purchaser will during the negotiation together with the supplier identify what shall or can be done and weave this into the assignment or agreement.

One ought to have a realistic view on the amount of resources needed and understand that years of development are behind a well functioning system like SE Purchasers’ Compass. The first version in 1996 was a client server application. The present web version is completely redesigned and suffers evidently from some teething problems to be corrected. Creating new questionnaires as well as updating interpretation keys and routines are in the pipeline. Five administrators, geographically scattered, support the purchasing organization within Stora Enso. There is also an administrative committee carrying out regularly meetings for follow up.

The effective time for the purchaser to send out questionnaires and register the answers in the system database is however a matter of minutes, provided that there are no technical problems. The same counts for the supplier to fill out the questionnaire if the papers are in order. The calendar time might however be longer, approximately two or three months. If the supplier is delayed, reminders and completions are needed. SE Purchasers’ Compass being regarded as an administrative burden is the main threat here.

Commitment among involved personnel and purchasers as well as support from their management is vital. The actual minimization of impact on the environment is probably both dependent on how the questionnaire is communicated in advance to the supplier and how the result is evaluated afterwards. This calls for active purchasers. It is crucial to connect the results to the agreements to the utmost possible extent so that the supplier is motivated to make improvements.

Business value 
The foremost business value of the strategy is that Stora Enso through this work have been able to keep and in certain cases even gain new customers. SE Purchasers’ Compass prevents different parts of Stora Enso from approaching the same supplier with different environmental demands through questionnaires. The mutual system also makes it possible to share relevant supplier information within the company. It puts environment on the agenda among other purchasing criteria and probably also helps the environmentally responsible of the suppliers, since they can show explicit environmental customer demands to their organization.