Supply Chain
Indicators
Statistics
|
On average Carillion spends £1.2 billion/year, on purchasing goods and services from approximately 15,000 suppliers and sub-contractors. Managing the environmental impacts of its supply chain is a key issue for Carillion.
Through managing our supply chain we can work with suppliers to reduce our collective environmental and social impacts.
Our clients are increasingly aware of their supply chain impacts. Several major clients, such as the Ministry of Defence, have asked to see Carillions Environmental Supply Chain Management Policies.
This year Crown House Engineering won the Construction category of the Kelly’s Award for Excellence in Purchasing & Supply.
Supply Chain Management Progress
Across the Carillion Group there has been an increased focus on suppliers, with the development of a strategy document, which was disseminated to key staff at a Carillion Purchasing Strategy Day.
Environmental criteria are included in Carillion purchasing decisions as set out in Carillion’s position statement on Environmental Supply Chain Management.
Carillion currently has two purchasing guidelines for timber and PVC purchasing, with others in the development stages. Through membership of the WWF 95+ Timber Group Carillion is introducing, where possible the purchase of Forestry Stewardship Certified (FSC) Timber.
In 2000 Carillion sought 3600 assessment of supplier relationships and gave suppliers the opportunity to assess Carillion’s performance. This is providing useful feedback on the level of service and information suppliers require.
In addition, both Crown House Engineering and Carillion Services have signed up to the Purchasing Code of Ethics, as outlined by the Chartered Institute of Purchasing and Supply.
Pay on Time
Carillion has announced a ‘pay on time’ strategy which all business groups are implementing. The senior management of Carillion are committed to this strategy, which ensures that payment is made within the timescales agreed in contract documents.
"As an existing supplier to Crown House Engineering we welcome the recent initiatives that have been put in place with regard to payment and have found them to be working favourably"
Mr. John Kelly, Commercial Manager, Euro Air Systems Ltd.
Carillion undertakes a series of assessments against its supply chain policies, which include environmental and social concerns. For example, Infrastructure Management and Capital Projects have undertaken monthly assessments of the performance of key suppliers.
Suppliers are evaluated on a number of different areas including Environment, co-operation, Health, Safety, and Quality, which include assessments of individual supplier incidents of non-compliance. The graph below is an example from August 2000.
Carillion is committed to ensuring that suppliers are not instantly de-listed if they do not meet any of the criteria. The emphasis is on encouragement of key suppliers to improve their environmental performance. As part of Project Acorn Carillion has trained 6 Crown House Engineering suppliers and 3 Crown House Engineering subcontractors.
Environmental Supply Chain Management Case Studies
- New Accommodation Project, Cheltenham
