Suppliers

Global Supplier Relationship Management 

“I head up our programme to ensure that RSA obtains good value, high quality products and services from our suppliers, not just at the start of the contract but indefinitely.

An essential part of successful supplier relationships is understanding the risks and opportunities and working in partnership with suppliers to find mutually beneficial solutions. We recognised that corporate responsibility is an area where encouraging our suppliers to achieve high standards benefits their businesses and reduces our own risks.

We outline our CR standards to suppliers and request information on their management and performance through a dedicated CR supplier relationship module. The CR module focuses on management of ethics, environment, human rights, equality and diversity.

The standardised approach of the modules allows benchmarking of suppliers’ programmes. Suppliers that are considered to be experts in a field are given the opportunity to showcase and share their experiences with RSA and other, less advanced, suppliers.

I've worked for RSA for 21 years and have a young environmentally conscious family myself. I'm incredibly proud to work for a company that really is committed to making a difference in tangible ways and also encourages its staff to get involved and follow suit.”

Jamie Napper
Excellence Manager, UK.

Our claims teams deal with a network of suppliers providing motor, household and other services on behalf of our customers. These account for 80% of our suppliers and 52% of our procurement spending. Our offices also buy equipment, supplies and support services such as travel, catering, cleaning and security. We aim to work with all our suppliers to improve the social and environment impact of our purchases.

Global Supplier profile*

*excluding Latin America

Supplier standards

Our Responsible Procurement Principles set out the social and environmental standards we expect suppliers to meet. They commit us to:

• Treating suppliers in a fair and reasonable manner;
• Aiming to reduce the environmental and social impact of RSA and influence business partners through the choice of procurement;
• Working with existing suppliers and partners to establish and then reduce environmental and social impacts;
• Working where possible with companies, charities, social enterprises or not-for-profit organisations which will enhance the community and environment;
• Reducing the full life-cycle impact and cost of products and services (in particular waste disposal) where possible;
• Engaging with the supplier to work towards joint solutions where suppliers or products used by RSA have a high risk of environmental impact.

Assessing suppliers

Our procurement teams communicate with suppliers on assessing the level of integration of CR. A CR specialist works with each regional head of procurement to help ensure that suppliers follow the Principles. In cases where we identify a supplier as high risk we make our concerns known and work with them to address any issues.

Procurement employees receive regular training to help them understand emerging supply chain risks.

In 2008, we piloted an assessment and engagement process in the UK. We identified 370 suppliers based on their size, the amount we spend with them and our knowledge of their practices and commitments. By the end of 2008, we had contacted 265 of these and asked 96, representing 85% of our procurement spend, to complete a questionnaire providing information about their policies and activities. We reviewed their responses against a risk matrix to help identify low and high-risk suppliers.

We intend to pilot the programme in our international business in 2009.

Industry collaboration

We are a signatory to the United Nations Global Compact and are committed to upholding its principles on human rights, labour standards and the environment in our supply chain.

We also work with our partners and industry organisations to improve supply chain standards and practices. For example, we are a lead participant in the Financial Services Procurement Forum CR working group. The group has developed a shared approach to supplier questionnaires focusing on issues such as labour standards, environmental management and human rights for the financial services sector.

During 2008 we were assessed (as a supplier to another financial services company) as part of the Carbon Disclosure Project’s Corporate Supply Chain Programme. The programme helps companies measure indirect greenhouse gas emissions resulting from their supply chain so they can manage their wider carbon footprint.

Greening the claims process

We aim to improve the impact of our purchases across the lifecycle of our products and services. This includes working with service providers such as motor vehicle repairers and construction companies to build environmental standards into the claims management process and procure more sustainable products. For example, we are investigating ways in which we can influence energy use through our claims handling processes. In the UK, our dedicated motor vehicle Quality Repair Centres, recycle usable parts from cars sent for scrap. They are working with an external organisation to match the parts to damaged cars.

Environmental improvements at vehicle repair centres

“When our Quality Repair Centres (QRC) decided to implement their oven improvement program, cost was not the only consideration. We wanted to focus on reducing our carbon footprint through our energy use in the painting and drying process.

We installed new spray booths that have helped us reduce our gas consumption by 65% through more efficient gas burners. We have reduced electricity usage by 35% with more efficient motors and lighting. The ovens are now able to complete a quicker cycle and helps reduce overall time for the repair.

It’s a win-win situation, the customer gets a quicker repair and the carbon footprint of each booth is reduced from 207,568kg to 22,338kg of CO2 each year.”

Barry Oglesby
Business Development Manager, UK