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Highly Commended in 2005

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Supply Chain, Highly Commended

Ricoh UK Products Limited - Green Procurement Programme

HBOS Supply Chain Award 2005 in association with the Chartered Institute of Purchasing and Supply

The challenge for Ricoh UK Products Ltd (RPL) is to reduce the overall environmental impact of their products and to bolster the Group's already strong reputation on environmental performance improvement. By improving the environmental impact of their suppliers, RPL has demonstrated that significant business benefits can also be passed onto themselves.

Processes

RPL has secured thorough integration of their Green Procurement Programme by creating a clearly defined environmental direction as part of the Ricoh Group Management Plans. They have established clear reporting routes and criteria, feeding back from operating levels to Ricoh Headquarters in Japan.

RPL has implemented training programmes for operational staff, delivered by Environment Office management. The progress of the entire project is monitored and measured against Group objectives and targets.

Firstly, an investigation is held into what environmental activities are already underway with each supplier. Information is collected from the environmental representative of each supplier, to allow RPL to target those suppliers not already compliant with requirements.

Suppliers are segregated into three categories – those already performing within RPL’s requirements, those planning to do so and those who have no plans. After initial meetings, further visits are held to discuss the implication of the new activities and how best to achieve the environmental targets set. The targets are set at the outset of the Programme and are measured on a regular basis and reported back to Headquarters.

Impact

59 businesses have introduced environmental improvement activities such as waste minimisation/reduction/elimination, energy conservation, elimination of hazardous substances and recycling since the Green Procurement Programme was introduced.

Suppliers have benefited from Reduction of waste, including paper, metals, and plastics. Lansdowne Studio reduced landfill wastes by at least 25%;

Reduction of air and noise pollution;

Increased energy efficiency - 25% reductions noted in gas & electricity usage by Livesey Ltd.

Direct business benefits include skill enhancement - staff are given direct responsibility for the development of their suppliers and of their own skills. The auditor pass rate is currently at 100%, giving the company access to a pool of 11 auditors to support the delivery of the programme to the supply base;

Motivation and retention - as a result of having additional responsibilities staff are encouraged to act independently to develop their supplier’s performance from non-compliance to full compliance. Staff within this function have an average of service time of 12.5 years. For a company only in existence since 1985, retention rates are high.