A Better Process
Through these projects, we learned that one of our biggest challenges has been a lack of common indicators to evaluate potential suppliers. Though each category and project has unique attributes, we needed a consistent process for ranking suppliers' sustainability performance in order to fairly and systematically integrate sustainability as a factor in our procurement process.
To achieve this goal, we developed a supplier scorecard to assess the match between Nike's CR values and those of existing and potential suppliers. Several yes/no questions ask about the policies, metrics, goals and performance on relevant topics, including: compliance, Considered, climate, community and competition. The competition section, for example, asks about employee and supplier diversity practices.
Questions are universal enough to apply to all suppliers and are provided online, enabling us to review each supplier's profile and establish baselines for peer groups and our overall supply base.
This process is helping us to establish a baseline of Nike's current non-product goods and services suppliers, evaluate potential new suppliers against that baseline, and analyze and learn from the collected data to inform future purchasing decisions.
Through FY09, we had requested more than 100 suppliers to complete the survey. To date, responses have showed wide variation in the effort on the part of suppliers and reveal significant differences between large and small companies. Only one large company indicated they had no corporate responsibility strategy or plan, compared to half of the small suppliers.
Moving forward, we expect to establish a minimum acceptable corporate responsibility standard required for suppliers to do business with Nike. We also plan to establish a supplier partner forum to share innovations and solutions, and to work with smaller suppliers, developing a set of tools to help companies that do not have the resources or the knowledge to make a strategic approach to building their corporate responsibility capabilities.
A Better Process
Through these projects, we learned that one of our biggest challenges has been a lack of common indicators to evaluate potential suppliers. Though each category and project has unique attributes, we needed a consistent process for ranking suppliers' sustainability performance in order to fairly and systematically integrate sustainability as a factor in our procurement process.
To achieve this goal, we developed a supplier scorecard to assess the match between Nike's CR values and those of existing and potential suppliers. Several yes/no questions ask about the policies, metrics, goals and performance on relevant topics, including: compliance, Considered, climate, community and competition. The competition section, for example, asks about employee and supplier diversity practices.
Questions are universal enough to apply to all suppliers and are provided online, enabling us to review each supplier's profile and establish baselines for peer groups and our overall supply base.
This process is helping us to establish a baseline of Nike's current non-product goods and services suppliers, evaluate potential new suppliers against that baseline, and analyze and learn from the collected data to inform future purchasing decisions.
Through FY09, we had requested more than 100 suppliers to complete the survey. To date, responses have showed wide variation in the effort on the part of suppliers and reveal significant differences between large and small companies. Only one large company indicated they had no corporate responsibility strategy or plan, compared to half of the small suppliers.
Moving forward, we expect to establish a minimum acceptable corporate responsibility standard required for suppliers to do business with Nike. We also plan to establish a supplier partner forum to share innovations and solutions, and to work with smaller suppliers, developing a set of tools to help companies that do not have the resources or the knowledge to make a strategic approach to building their corporate responsibility capabilities.
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