2006 Big Tick winner

Big Tick winner in 2006

Big Tick Winner

Anglian Water Group - Corporate responsibility in the supply chain

HBOS Supply Chain Award 2006 supported by DEFRA’s Sustainable Development Unit, in association with the Chartered Institute of Purchasing and Supply

AWS has invested heavily over the past few years in a leading edge supply chain management capability to ensure that it is developing strong supply chain partners that have aligned objectives and share similar values. As part of improving the capability of the supply chain, particularly from a Health & Safety and Environmental perspective, AWS has supported the introduction of the Verify Scheme, which provides an accreditation framework for suppliers and contractors working in the Utility sector.

Processes

Anglian Water Services (AWS) is part of the AWG Plc group, and serves over 6 million customers across East Anglia and the East Midlands.

Through the adoption of strategic sourcing processes, AWS has reduced its supply base from 16,000 suppliers/contractors in 2000 to 3,500 today. Approximately 70% of AWS' spend is now concentrated with its top 50 suppliers. This has dramatically affected the way that AWS deals with corporate responsibility issues in the supply chain:

  • The competitive tendering processes include an audit of an organisation's health & safety and environmental performance and capability. This is done on a collaborative basis with a number of other Utility clients via the Verify Scheme;
  • Verify is an independent utility Sector pre-qualification scheme aimed at providing detailed assessments of performance and capabilities in the areas of health & safety, environmental management and quality;
  • Reports on participating organisations are available online via www.achilles.co.uk. AWS uses these to assess the environmental credentials of suppliers and have introduced a minimum acceptable score in an effort to impose higher standards of compliance and continuous improvement;
  • It is now AWS Policy to only use verify accredited organisations for activities involving high H&S/environmental risk;
  • In order to define and put in place environmental procurement best practice in line with corporate values, AWS has produced a 'CR Guide for Buyers';
  • AWS has also produced a best practice 'tool-box' from which the most effective element has been the introduction of Environmental Impact Assessments. This is used to assess the whole-life impact on the environment of goods and services.

Impact

  • By taking into account whole life costs and the benefits of having energy efficient motors, energy savings of £125,000 pa were realised
  • AWS has embarked on a programme to reduce chemical usage by 5%. This will have a double benefit of reducing the chemicals going into the environment and also reducing expenditure by £500,000 per annum. Working with its lime supplier, and by installing accurate monitoring equipment, AWS has reduced its annual lime consumption by £128,000
  • AWS has plotted the whereabouts of all of the aggregate quarries across East Anglia. This information has been made available to its major contractors who are now able to identify the most competitive quarry nearest to the site they are working on, thereby reducing cost and transit distances. In the past 12 months this system has saved £90,000 in fuel usage

See also