Bc Article The Environmentalist March 09

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Information about Bc Article The Environmentalist March 09

Published on August 18, 2009

Author: AndrewKinsey

Source: slideshare.net


Article on BuildingConfidence Supply Chain Accreditation Scheme

Building confidence - sustainability in the construction industry quality and sustainability follow on, often in that order. I And although principal contractors can set the scene and lead by example, in the end it is the trade contractors and suppliers that are J involved in actually doing the work or providing the materials that affect the performance of the project. But for many years there has been a general perception that sustainability issues in the supply chain are a very difficult issue to grapple with. However we have also long known that it is a fundamental issue that must be addressed if we and the rest of our industry are to improve. Over many years, Bovis Lend Lease, for one, has sought to have closer relationships with its supply chain to improve environmental and sustainability performance. It is recognised as a business critical issue, fundamental to performance and relationships with clients, which is why sustainability is now one of our guiding principles governing how we do business. Pre-qualification questionnaires Following the precedents set by environmental standards such as ISO 14001 and EMASand safety regulation such as the Construction (Design and Management) Regulations, like many other organisations in the sector we have used pre-qualification questionnaires (PQQ)to attempt to assess performance in our supply chain. Used correctly these can be a valuable tool; however there is a very real difficulty in reviewing and disseminating the information contained within the replies. For example: How do we know the respondent has properly understood and is addressing the questions we have raised? Have they provided the correct supporting evidence requested? Do the responses relate to all of the activities undertaken by an organisation that we seek to do business with? There is also a resource issue of being able physically to process and assess the sheer number of responses arising from a diverse supply base. Similarly for suppliers working for a number of large organisations that use such questionnaires there is also a significant resource requirement needed to ensure the forms can be completed he construction industry has been considered a laggard correctly and on time. T compared to other industry sectors when it comes to managing environmental and sustainability issues within its supply chain. But recent developments in assessing and improving But where the procurement process does not appear to put any weight on the outcomes of such questionnaires, or there is little in the way of follow up action, there is also a danger such systems may understanding of sustainability within the supply chain may help fall into disrepute and become considered as merely a 'tick box' move things forward. exercise and part of the price of being able to do business. Indeed, the fragmented and contractual nature of the With this in mind, and the ever increasing volume of construction industry has led to the development of a 'delivery at legislation and the demands and expectations of clients and other all costs' culture, and ultimately what has often mattered is project stakeholders, Bovis Lend Lease decided to develop a more robust completion and delivery to time and cost. Other issues such as industry accreditation scheme using an independent third-party

accreditation organisation, Achilles. The aim is not to penalise information requested. For example, financial data is downloaded suppliers, but to discover where any weaknesses lie and what into the Achilles system from Equifax based on published company improvements are needed. After all, as in any industry, and as a accounts. project and construction management organisation, Bovis Lend The online PQQ can also be updated by a supplier at any time, Lease is only as good as its supply chain. and the system allows staff with access to 'subscribe' to particular The accreditation scheme, BuildingConfidence, covers issues such suppliers so we are kept notified of any changes to the system, or if as environmental performance, social and ethical controls, health certain key documents such as insurances are running out of date. and safety management systems, quality assurance and control, A key strength of the BuildingConfidence process is the use of an financial stability, and business continuity processes. audit process to follow up the pre-qualification. This is also used to This includes both pre-qualification and accreditation of supply verify some of the information collected at the PQQstage. chain partners using an audit process to identify any deficiencies Any errors that may have been inadvertently made are then and put in place agreed action plans for improvement. It is this corrected, for example a supplier may have not declared the second aspect of physically assessing that also improves awareness existence of an environmental policy during the submission of their all the way down our supply chain of the key policies that we are prequalification, but if such a policy was found to exist during the seeking to address. audit, the PQQ would be updated accordingly. Ultimately this is a win-win-win situation. It is beneficial to the The audit process conducted by Achilles aims to review other supplier, as their processes will be improved and the business will documentation physically and examine key processes in place by be stronger as a result. It is beneficial to us, as our supply chain the particular organisation. The process is robust and highlights how becomes more aligned with our policies and processes, and risk is serious we are about improving our business and our supply chain. reduced. Our clients also benefit from improved confidence and It also offers the opportunity for debate and dialogue with reduced risk. our supply chain, so for the supplier there is an improved BuildingConfidence still uses PQQs, but the questions are understanding of our requirements, but more importantly any restricted to those that can be easily self-declared by a supplier in deficiencies are properly identified and addressed through agreed order to reduce the time needed at the audit stage. The information action plans. Follow up reports on the outcomes of audits are also provided is verified by Achilles, and the PQQresponses are also stored on the system. tested during the accreditation stage to discover any errors - for example a supplier may have declared they do not have a particular Issues process or policy when in fact they do or vice versa. Already there have been some interesting learning outcomes. Some companies that we thought might find the process difficult have Using the web proved to be better than we expected. However there have also been The pre-qualification process used in BuildingConfidence is a secure cases where a number of significant issues have been discovered. internet system accessed using a standard web browser (see Figure 1). For example, results of the initial accreditations undertaken on our supply chain through BuildingConfidence revealed that 60 per cent could not demonstrate the existence of management systems that addressed environmental and sustainability issues. A )( BuildingConfidence similar assessment in 2000 on more than 500 suppliers using the empowered by Achilles paper questionnaires showed this figure was around 70 per cent of suppliers. So although perhaps there has been some improvement, it is still an area of concern that many of our suppliers are not managing environmental risk properly. We have also discovered that the majority (about go per cent) 0p::.:~:2,~ ~ ~i::.s,lpp~er. (luntlonn.,,-eor" speafi, f Dd~:::~: ::~~~Uf:~t. H~e~Jic JI,ll'O'lier. of our suppliers do not currently audit their supply chain to check g ~:~If:ra J~~:i.~;:~~:~ cet"il~ surd> ~e".. l§1 ~=~:: ~~~::;rfor 4ndevCMS. scheme dCWllUl(;tS, MWS on ethical issues. Whilst this is perhaps not surprising, it does highlight the issue to our suppliers as an area we wish to address, and provides us with opportunities to debate with our supply chain partners as to how we should address such matters in future. There are several benefits over a paper-based questionnaire As these and other issues emerge, the question sets for both the approach. pre-qualification and audit stages can be easily updated, to ensure For example, in the past, from a sample of over 500 suppliers the focus remains on those issues which are deemed to be most only 25 per cent of respondents to paper-based questionnaires important. actually provided a copy of their environmental policy that could be To maintain this process and ensure good governance, properly verified when requested. BuildingConfidence is run by a steering group, made up of Conversely, the online PQQ ensures the supplier must provide representatives of any member organisations. The steering group documentation or information to be able to complete the form and meets regularly to review progress and decide on priorities for submit the information. This is verified by Achilles to make sure, for updating and amending the question sets. example, that when we have asked for an environmental policy this In addition, the BuildingConfidence accreditation process has is what is actually filed. been offered to other major contractors and has recently been Some information can be automatically gathered to ensure adopted by Shepherd Construction. Ultimately the aim is to accuracy and save time for the supplier in completing the encourage other principal contractors and construction clients to

use BuildingConfidence accreditation. In doing so it becomes a very In addition to the accreditation scheme, a peer review process has powerful proposition to clients and suppliers alike. also been developed. Actual performance of trade contractors and Suppliers can benefit by reducing the number of pre- suppliers is regularly assessed by our managers and scored against qualifications they have to complete for each client they work for, a pre-defined scorecard. The results are averaged across all of the which currently does not add any value to the process. Clients of projects a particular supplier is working on to provide the Bovis Lend BuildingConfidence will benefit from a more consistent approach Lease view of the actual performance of those suppliers (see Figure 2). and for those suppliers used infrequently, the knowledge that The purple bars show the range of performance for each performance improvement is still being addressed as suppliers measure, and the red lines show the particular supplier continue to be accredited as a result of working for other clients of performance in relation to their peers. The thin red line showing a BuildingConfidence. score of seven shows the minimum level of performance we desire. Accreditation and performance assessment are both proving to be powerful tools in assessing the performance of suppliers across a wide range of issues including environment and sustainability. To paraphrase a famous quotation by former USSecretary of State for Defence, Donald Rumsfeld, accreditation highlights the fact that there are still quite a number of 'unknown unknowns' ---- ---------------ScM-- __CIP- - --lIr about our supply chain. The good news is that we are beginning to M 5 discover much more about our supply chain and be able to work on improvement together .• Andrew Kinsey, Senior Sustainability Manager Bovis Lend Lease andrew. kinsey@eu.bovislendlease.com The revised environmental management standards can be purchased (with discounts) at: www.iema.net/shop Stop Your Website contributing to 2% of Global C02 emissions Switching to a carbon neutral web-hosting company today could make all the difference. Apart from offering your customers the right green option ... 1 ..you can promote your company's green image further 2 ..radically cut your web-hosting costs 3 ..we can have your website changed over and up and running with a green host within a day 4 ..let us redesign your website and you'll receive green web-hosting as standard Book a website makeover with us by end of April and we'll design a free email flyer to your customers to announce the launch of your new green hosting site! Speak to one of our friendly team: 0844 815 9320 To view our work and services: www.dpmuk.com

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