2005 Big Tick winner

Example of Excellence in 2005

2006 Big Tick winner

Re-accredited in 2006

Boots Group, Big Tick winner of HBOS Supply Chain Award 2006

Boots collect their award

Big Tick winner

Supply Chain, Example of Excellence

Boots Group PLC - Supplier Verification Programme

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

Boots is one of the most trusted brand names on the high street, with its brand value estimated at £1.2bn. The nature of Boots’ products means that maintaining trust between the customer and the brand is essential to their continuing business success. Issues in the supply chain, such as poor labour standards, or poor environmental practices could have a negative impact on the business.

Processes

Through a robust process based on the principles of continuous improvement, the Supplier Verification Programme assesses supplier compliance with the Boots Group Code of Conduct for Ethical Trading.

Suppliers are visited by specialist teams, comprising split gender assessors and use a combination of communication tools aimed at workers, management and trade unions. The findings of the assessments are communicated to all key stakeholders, for example workers and buying teams internally. This information is then used to influence future purchasing decisions. Further communication ensures that remediation actions raised from assessments are closed off within agreed timescales and that suppliers continue to comply with the Code. Boots assesses all of its external Boots brand product suppliers.

Impact

  • The Supplier Verification Programme has so far identified over 2500 breaches against the Code since it began
  • A higher compliance rate reduces the risk to the brand, means a reduced risk of prosecution for suppliers, and improves suppliers efficiency to deliver product on time. Boots believes that managing the supply chain is about creating value through development of strong relationships throughout its supply chain
  • Results have shown that workers have increased awareness of their rights and have more empowerment, suppliers have increased efficiency, reduced overheads and lowered recruitment costs

See also