BP ALL7
description
Transcript of BP ALL7
FLORICULTURE CLUSTER IN PUNE, INDIA
Best practices
By Laura Dos Santos
Sarah Gay
Saki Hanzawa
& Louise Penin
ECO2. I re-
duce waste
in my pro-
ECO3. I’m
ready to export
my products
ENV1. I measure my
impacts on environ-
ment
ENV2. I reduce
my impacts
ENV3. I inno-
vate to reduce
my impacts
SOC1. I set up conditions
to keep up the social
performance
SOC2. I do have
good working
conditions
SOC3. I implement the
social performance to
the strategy
GOV1. I identify
my stakeholders
GOV2. I am
in contact
with them
GOV3. I
collaborate
with them
I KNOW I DO I EVOLVE
Best practices Global view
ECO1. I organize my
process of production
Governance Toward a collaborative communication
GOV1. I IDENTIFY MY
STAKEHOLDERS
GOV2. I AM IN
CONTACT WITH MY
STAKEHOLDERS
GOV3. I
COLLABORATE WITH
THE STAKEHOLDERS
Governance is a transversal
s t a k e f o r s u s t a i n a b l e
development and CSR. The aim
is to gather stakeholders around
o n e o b j e c t i v e o f g l o b a l
performance.
To gather stakeholders, there are
three phases: the identification,
the communication toward them
and, the collaborative work with
some of them.
In our cluster, the main objective
is to create a synergy between
al l actors and make them
sharing their resources to be
m o r e e f f i c i e nt w i t h f e we r
resources.
GOV1. I IDENTIFY MY
STAKEHOLDERS
The first step toward a collaborative business is the identification of the stakeholders, that
is to say know who they are, how they can impact you and what your level of depend-
ence regarding them is. The aim of this best practice is to realise a cartography of all the
stakeholders to see the strong and the weak points.
BENEFITS
Stakeholders are part of the business so they need to be clearly
identified to be included in the strategy. Without doing this, you can
do anything to improve your business, you will never know the im-
pact and so never really thrive and develop sustainably.
STEPS
1. You have to know who the other actors of the cluster are, that
is to say: their name, activity and size. You can fill the table 1
below to have a global view of them.
2. You have to know all your stakeholders, that is to say your cli-
ents, providers, subcontractors, employees and other public
institutions. For this, you can be able to position each of them in
a cartography, like in table 2 and place everyone in a scheme
like scheme 3.
Regarding employees, you may be able to fill the table 4 for
safety reasons but also to know their abilities, especially for dai-
ly workers & adapt your needs to the resources..
3. You have to know who your final consumers are in order to sat-
isfy them and to develop new markets. So you need to have
the percentage of your flowers which are sold in each market
place in Europe. If you don’t know this data, do not hesitate to
contact your export agent.
EXAMPLES
Table 1 for clusters’ actors:
Table 2 :
Scheme 3 :
Table 4 for employees contact :
Name of the firm Name of the boss Number of employees Type of production
INTEREST LEVEL
Weak Strong
Weak Keep satisfied Key actors POWER
Strong Minimal effort Keep informed
Name Gender Age Contact in case of emergency Speciality
GOV2. I AM IN
CONTACT WITH MY
STAKEHOLDERS
Once you have identified who are your stakeholders, establishing a strategy means not
only knowing they exist, but also knowing what they want and how you can play win-win.
For this, you need to be in contact and communicate with them. The aim of this best
practice is to formalize a contact with the shareholders.
BENEFITS
The company will be able to set up a strategy on the long term
thanks to the inclusion of the stakeholders. Indeed, without including
them, the strategy is precarious because without foundations.
STEPS
1. You have to communicate with the other actors of your cluster
to create visibility and synergy. You can choose various means
more or less formal and more or less computing.
We suggest you to do it by an intranet if it exists, a newsletter or
regular meetings but you can be as innovative as you wish
once they know you and want interact with you.
2. You have to communicate with the external stakeholders you
have identified before. This will create visibility and credibility.
You can choose various means more or less formal and more
or less computing. We suggest you to do it by editing charters
to describe you mission, vision and values, your commitments
and everything which could describe you. This is an example
but you can be as innovative as you wish once you broadcast
it in order to be understood and known.
REFERENCES
Chapter 7.5 of ISO26000 norm is dealing with the communication
with the stakeholders regarding CSR.
GRI Guidelines are also recommending communicating to stake-
holders, following their indicators.
STEPS
3. Each of the consumers (wholesaler) who buy your flower
should be able to know more about you, and why not be
able to contact you if he is convinced by the quality of your
product?
You can choose various means but preferably formal and
computing solutions.
We suggest you to do it by creating a website page with your
contact and all kind of information you think your final clients
GOV3. I
COLLABORATE WITH
THE STAKEHOLDERS
Once you have identified your stakeholders, you communicate with them and you
know your business position, your aims and your strategy thanks to this knowledge, you
need to go further your restricted action field: you need to collaborate with other actors
of the cluster to look out the outlook on the long term. The aim of this best practice is to
create a synergy between all the cluster actors, made of resources sharing.
BENEFITS
Create a synergy between cluster actors through a common vision
will make them cooperate and help each others. It will be easier to
progress but also to face problems and crisis. Indeed, with resources
sharing, risks are lower while benefits are higher. Thanks to this best
practice, we can hope for the cluster a growth to propel it amongst
the biggest floriculture actor in India.
STEPS
1. Now you know and communicate with other clusters’ actors,
you have to benefit from the synergy to gather and create
global vision and values. So you have to create a document
with these commitments, agreed and signed by several actors.
See Kenyan’s floriculture cluster example on reference 1.
2. You have to report in a common document, published once a
year to explain what you did and what you will do economi-
cally, environmentally and socially. ISO26000 norm and GRI are
referring to this practice (cf. ref. 2). Read also our “create your
sustainable development report” guide on Blueprint21.
REFERENCES
Reference 1 : http://www.fpeak.org/about.html
create your sustainable development report is a guide you can find
on our blueprint21 platform.
Reference 2 : Chapter 7.5 and following of ISO26000 norm is dealing
with the communication in sustainable development field and par-
ticularly in reports. Global Reporting Initiative is a guideline to help
creating CSR reports.
Reference 3 : muressa.org (in French) - 4 kind of exchanges are pos-
sible : skills, logistic resources, tools and expériences
STEPS
3. To be the more efficient possible, you have to share your
resources with other clusters’ actors.
You have to imply a computer system to know resources
available and match them with your needs.
A French project, detailed in reference 3, aims at valorising
resource sharing and explains what the advantages are.
Economics Toward a lean management
Flower is perishable agricultural
product, so in order to avoid
losses as many as possible, it is
the most economical to produce
the product what customer
needs, the exact amount, and to
deliver it at the right place, at
the right time. For example,
r e s p o n s i v e o r d e r s y s t e m ,
production schedule following
the order, shipment instructions
to growers, and fast reliably
distribution from producers to
customers. For build it, we are
inspired by Just-in-time of Toyota
Production System or method of
e l i m i n a t i n g w a s t e , a n d
eventually we will adapt the
s a m e m e c h a n i s m t o
international export.
ECO1. I ORGANIZE
MY PROCESS OF
PRODUCTION
ECO2. I REDUCE
MY WASTES OF
PRODUCTION
ECO3. I AM READY
TO EXPORT MY
PRODUCTION
ECO1. I ORGANIZE
MY PROCESS OF
PRODUCTION
India has good prospects in the floriculture industry but it is still largely unorganized. So
far growers have not been receiving orders, and they sell the volume of flowers which
could be harvested at the auctions or to the wholesalers. In the first step, we shift from
the old system to the new optimized production process. We aim at establishing a pro-
cess for deploying the order system, building the production schedule and delivering
quickly to customers.
BENEFITS
Farm products are unlike industrial products in difficulty of produc-
tion control. Therefore, in the traditional process, there is no produc-
tion schedule and not enough to respond to customer needs, or a
lot of losses had been made. Thanks to new process, we are able to
achieve quick response to customer needs, lean production and
cutting of losses during transportation. Moreover, we can expect
that the price will be lower when the supply exceeds the demand.
STEPS
1. You should set up an electronic order system which can use
with your customers.
2. You can make a production schedule thanks to orders.
3. You must find transporters or own logistic chain for deliver in
time, at the right place without fail.
REFERENCES
The necessity of precision agriculture. – Use appropriate technology
to bring precision agriculture to Africa and India.
Global-economic-symposium.org
EXAMPLES
For the electronic order system. – The system calls cultivators to har-
vest and shipment after receiving orders from several sales destina-
tions.
Itmedia.co.jp (in Japanese)
For the production planning: interface.highwire.org
For the logistic system: ideas.repec.org , Growdirect.com
ECO2. I REDUCE
MY WASTES OF
PRODUCTION
In the second step, we will completely eliminate elements of production that do not cre-
ate value (MUDA = wastes) in order to reduce the cost while producing timely the high
quality product and receiving customer orders. It calls “MUDA” in Toyota Production Sys-
tem. The most important thing is to continue struggling on elimination of MUDA, and also
to put 5S get clues to find wastes.
BENEFITS
Eliminating MUDA is required in various phases, for example, to cut
extra motion and transportation promotes your operational efficien-
cy. Also, we can expect cost reduction to avoid over-production,
too much inventory and defects. Just keep the workplace neat and
tidy, we can discover wastes, and it will lead to improvement of the
workplace.
STEPS
For eliminate MUDA and improve for the better , there are several
approach.
1. You introduce the method of 5S on your production process.
2. You find ways to visualize your wastes (reference 1).
3. You make an effort for the continuation of improvement.
REFERENCES
Reference 1 : About the seven MUDA, and the 5S :
doshnsclick.files.wordpress.com
EXAMPLES
There is example of initiative that was introduced into agriculture Toyota
Production System in Japan. It was a salad leaves farmer. Similarly, Indian
rose grows fast and it can be harvested several times a year. Therefore it’s
easy to measure the improvement.
Tokyokeizai.net (in Japanese)
ECO3. I AM READY
TO EXPORT MY
PRODUCTION
India’s share in international trade in floriculture is around 0.18%. To compete with Kenya
and Uganda which are major exporters to the European market, we have to take more
overseas orders. For the third step, in order not to miss the opportunity to enter foreign
market, we ready for export such as we could respond quickly to international orders.
BENEFITS
Computerization allows for immediate response and does not miss
the overseas demand. To facilitate both logistics and export condi-
tions in cooperation will lead to lowering the barriers for many farm-
ers to export. As a result, Indian trade would rise in the world market.
STEPS
1. You connect with international customers through real-time or-
der system.
2. You improve your logistics with other farmers in collaboration.
3. You work on the negotiation for conditions of export.
REFERENCES
CBI (Centre for the Promotion of Imports from developing countries) :
cbi.eu
EXAMPLE
Example of joint export in Israel : hortibiz.com
Example of joint project CBI and Ethiopian flowers : cbi.eu
Social Toward a better image of the working
conditions in floriculture management
F lo r icu l tu re i s one of the
industries that require a large
labour force with limited skills.
The production involves grading,
packing, harvesting, tending
beds, watering and so on. In
India many of the workers are
p o o r a n d v u l n e r a b l e t o
exploitation. The bad working
conditions are more and more
an obstacle for customers from
developed countries which can
choose a flower which comes
from a developed country where
the workers are probably better
treated. Implement a social
strategy is a way to seek for a
n e w d e m a n d . T h e
recommendations of the Ethical
Trade Initiative, an international
label and the ILO will guide the
establishment of best social
practices.
SOC1: I SET UP CONDI-
TIONS TO KEEP UP THE
SOCIAL PERFORMANCE
SOC2: I DO HAVE
GOOD WORKING
CONDITIONS
SOC3 : I IMPLEMENT THE
SOCIAL PERFOMANCE TO
THE STRATEGY
SOC1: I SET UP
CONDITIONS TO
KEEP UP THE SOCIAL
PERFORMANCE
Set up conditions to keep up the social performance means that the company pro-
vides resources to manage the social improvement. It involves criterias of recruitment
which respect human rights but it also involves people among managers and workers
who are spokespersons and responsible of the project
BENEFITS
The social aspects of work in floriculture are more and more
watched by NGOs and occidental consumer which is the target of
your cluster. In Kenya, serious violations of the human rights were re-
ported and pushed the company to re-think their model. Beyond
that, the social performance will prevent from social rebellion and
will assure a better management of human resources. It means to
be able to adapt the work force to any change of the production
process. Responsible persons had to be designed to conduct the
social improvements.
STEPS
1. You need a responsible of the working conditions among
managers. It has to be someone who is comfortable to discuss with
employees, someone who has good interpersonal skills.
2. Design a spokesperson among your employees. He can be
chosen by the employees to be more legitimate
3. Your criterias of recruitments have to include no child labour,
employment freely chosen and no discrimination
REFERENCES
Smith, S. et al (2004), Ethical Trade in African Horticulture: gender,
rights and participation,
Genderandtrade.org
SOC2: I DO HAVE
GOOD WORKING
CONDITIONS
The Declaration on Fundamental Principles and Rights at work (ILO, 1998) written by the
International Labour Organisation, an agency from the UN define standards as
fundamental rights at work. These standards are grouped in four categories: freedom of
association and the effective recognition of the right to collective bargaining, the
elimination of forced or compulsory labor, the abolition of child labor, and the
elimination of discrimination in respect of employment and occupation. As a member of
the ILO, India respects those fundamentals rights and labour laws are the same in every
state. These are the basics to provide good working conditions.
BENEFITS
By respecting basic fundamentals of the human rights at work, the
company will be able to communicate about it and to become a
model and an attractive place to work.
STEPS
1. You register the work-related accidents
2. You have a device control for the working hours
3. You offer at least the minimum wage to all of the workers?
REFERENCES
ILO, 1998 The Declaration on Fundamental Principles and Rights at work
http://www.ilo.org/declaration/lang--en/index.htm
EXAMPLES
A Register example :
Name of injured worker__________________________________________________________
Occupation or job title___________________________________________________________
Date of injury____Hour ____ am/pm
Worker’s exact location at time of injury___________________________________________
Exact description of how injury sustained__________________________________________
Nature of injury and body parts affected__________________________________________
Details of treatment given________________________________________________________
Return to work : yes/no
Name of witness (if any) to the injury______________________________________________
Name of person making entry____________________________________________________
Signature_________________________________________Date of entry_______
SOC3 : I IMPLEMENT THE
SOCIAL PERFOMANCE TO
THE STRATEGY
Social performance is not just about profits for the society, it will be a competitive
advantage for the company. The condition is to implement it into the company’s
strategy. Each crucial decision about the production process, about how to make
create value has to be thought with the human resources. A more ethic trade
approach will be valued for the company and their clients. To be internationally
recognised the Ethical Trade Initiative label wich is based on ILO standards will be an
interesting target. It is a label supported by well known groups as Tesco, Sainsbury, M&S
which could be potential retailers but also holding of horticulture. They have an
expertise in floriculture in Kenya so they are able to propose a well-adapt support.
BENEFITS
Having a real management of human resources will assure to the
company to be more competitive. First by having the right human
to the right place with the right job and then by showing to the de-
veloped countries that they are ethical.
STEPS
1. Establish a monitoring committee in the cluster to control the so-
cial performance.
2.Adapt the ETI base code to your industry with the responsible(s)
and spokesperson(s).
3. Prepare the cluster to apply for the Ethical Trade Initiative label.
REFERENCES
ETI, (2011) The flower industry http://www.ethicaltrade.org/in-action/
issues/the-flower-industry
Environment Toward a sustainable agriculture
The f lo r icu l tu re product ion i s
main ly under poly houses in
Ind ia. Th i s way of producing
i s bene f ic ia l fo r a huge
quant i ty of f lowers as i t can
b e c o n t r o l l e d . B u t i t
demands important energy
c o n s u m p t i o n a n d w a t e r
consumpt ion . Moreover , the
use of chemical s can reduce
the qual i ty of so i l . Not on ly
f o r p r e s e r v i n g t h e
env i ronment but a l so in o rder
to reduce use less cost s , i t i s
i m p o r t a n t t o r e d u c e t h e
impacts on env i ronment of
e n e r g y , w a t e r a n d
chemical s . Moreover , Ind ian
government want to develop
t h e s e c t o r o f c l e a n
t e c h n o l o g y . I t ’ s a n e w
opportunity to be more respectful
for environment, save costs, and
become more attractive.
ENV1 : I MEASURE
MY IMPACTS ON
ENVIRONMENT
ENV2. I REDUCE
MY IMPACTS ON
ENVIRONMENT
ENV3. I INNOVATE TO
REDUCE MY IMPACTS
ON ENVIRONMENT
ENV1. I MEASURE
MY IMPACTS ON
ENVIRONMENT
This first best practice is a diagnostic of the actual situation. That means setting up right
tools to measure the consumption of the three types of consumption in order to adopt the
appropriate and pertinent acting plan. Diverse tools can be adopted to realize this best
practice. An easy and recognized one to measure its impacts on environment is the
global footprint. Both consumption of chemicals and energy are taken into account and
allow the companies to have knowledge of theirs greenhouse gases is terms of CO2. To
measure the water consumption, the Water Footprint is a tool originally developed by
Arjen Hoekstra et al.
BENEFITS
Measuring impacts on environment through recognized tools as the
global footprint and water footprint will be beneficial for the pro-
ducers because it will show the main post of consumption. As a re-
sult, an appropriate and pertinent action plans of reduction. The
tools we recommend are internationally recognize and reliable.
They will help the decision-makers recognize the impact of ecologi-
cal overshoot on their own policies, investments and projects, and
demonstrate that it is both in their interest and within their power to
turn the tide. It’s just after measuring it that we can make a strategy
to become more responsible. Indeed, it supposes to have the ap-
propriate tools to measure it.
STEPS
1. You know the consumer posts of energy / water / soil in our
company.
2. You have tools for measuring your consumption of energy /
water / chemicals. (Global Footprint, Water Footprint…)
REFERENCES
The ISO 14001 is about environmental management and refers the
life cycle analysis as a condition to be certified. The ISO 14040 and
14044 are the references for measuring the impacts.
EXAMPLES
Global Footprint Network, water footprint : footprintnetwork.org/
STEPS
3. You know the consumption of energy / water / chemicals of
your competitors so you can compare yours.
ENV2. I REDUCE
MY IMPACTS ON
ENVIRONMENT
After measuring impacts on environment, the company must be able to set up actions to
reduce the consumption of energy, water, and use of chemicals. The company must
have objectives of reduction and an action plan to reach them. Some example of
actions in the area of water consumption is reducing the frequency of irrigation or the
outputs of water. In the case of energy, it could be not to overheat the polyhouse and
turn out the lights when it’s not necessary. As the production is protected, the sun could
be sufficient to assure a good light and a good heat. As for the use of chemicals, it could
be using other type of entrants as bio-fertilizers, more respectful of the environment.
BENEFITS
Reducing its consumption of energy, water and chemicals will be
beneficial for the company as it will reduce its costs. Moreover, it will
improve its image and could have an improvement of the demand.
It will be also beneficial for the producer and the cultivator for its
health and for the environment as it will be more respected.
STEPS 1. You have precise objective of reduction.
2. You set up a strategy to reduce your consumption.
3. You reached your objective of reduction.
REFERENCES
As for the measure of the impacts, the reduction is also referenced in
the ISO 14001 norm.
EXAMPLES
Tissue Innovant (TI) is a Canadian company producing tissues with
chairs or curtains of hospitals for the market of the furnishing. This SME
(SMALL AND MEDIUM-SIZED ENTERPRISE) of 200 employees evolves in
the very competitive industry of the textile. It’s the biggest manufac-
turer in Canada and takes place in the fourth rank in North America,
ISO-certified 9000 and ISO 14001, TI, by its environmental practices,
reduced of 80 % its greenhouse gas emissions, of 24 % its use of ener-
gy, 74 % its water consumption; the company recycles 99,9 % of its
fabrics(tissues), some plastic and some paper, while increasing its
use of renewable energy until a 91 % level.
ENV3. I INNOVATE TO
REDUCE MY IMPACTS
ON ENVIRONMENT
This best practice provides new ways of managing the production in a more eco-friendly
way. In the sector of agriculture, there are plenty of investment to be more efficient and
at the same time more respectful of the environment. Innovation is not only a good way
to adopt a positive impact on environment, but also to be more efficient. Clean technol-
ogies or renewable energy are products and services that reduce the risk of harming the
environment, minimise pollution, minimise the amount of materials used and correct envi-
ronmental damage.
BENEFITS
Innovation in this area demand high investment and adaptation to
learn how to manage it. But it’s not comparable with the benefits
that it can provide. The clean technologies let companies using re-
newable materials and energy sources, limit the energy use, reduce
the use of natural resources, reduce or eliminate waste, and then
reduce costs in a long-term perspective. By investing in clean tech-
nologies, the producers broadcast a new image, more positive and
at the same time can be more efficient.
STEPS
1. You set up a process of competitive intelligence in clean tech-
nologies.
2. You invest in clean technologies to be more efficient.
3. You do R&D in the environmental area.
REFERENCES
The sustainable agriculture network (SAN) is working to improve farm
standards to make them more respectful through environ-
ment. Every few years, the SAN does a complete overhaul of the
standard for farms that want to promote their products as Rainforest
Alliance Certified™. Their principles for a sustainable agriculture are
sanstandards.org
EXAMPLE
Bhubaneswar: Chief Minister Sri Naveen Patnaik has felicitated
farmer Soumendra Behera for his innovative endeavour in floriculture
in a special function “State Level Agricultural Fair” organized by Agri-
culture Department. orissadiary.com
Horticulture cluster 2020 project in Netherlands: a new concept has
been developed to tackle the issue of energy : the greenhouse as
an energy source. innovatienetwerk.org