Engaging with suppliers on waste prevention - WRAP case study - 220915.pdfEngaging with suppliers on...

Engaging with suppliers on waste prevention

SETTING THE CONTEXT

As a signatory to the Courtauld Commitment 3 (CC3), Nestlé UK are engaged in waste prevention at source. All Nestle UK sites also follow a policy of zero waste to landfill. Nestlé UK have now engaged with their Tier 1 suppliers with whom they have good relationships to support and encourage action on waste in the wider supply base. WRAP supported this approach to cascade waste prevention because it provided a test-bed for the next phase of the Courtauld Commitment (C2025). Nestlé UK worked with WRAP to develop and introduce a set of Key Performance Indicators (KPIs) against which they can evaluate the progress of their suppliers towards developing and implementing a waste minimisation culture at their own sites’ operations. This also helps Nestlé UK develop a platform from which to meet their wider, long term sustainability targets. By working as a dedicated team with its suppliers and WRAP, Nestlé UK produced a set of KPIs for their packaging and ingredients suppliers. This approach ensured the suppliers were not only engaged from the onset but were very much part of a feasible and commercially viable solution.

page 1 Background

Developing waste minimisation KPIs process

KPI considerations, implementation and reporting

The results and next steps

‘By collaborating with key suppliers, we have been able to develop a set of KPI’s that have been agreed by everyone and are solution focussed. The benefits will be reduced waste in our supply chain and a platform for improved supplier engagement and knowledge sharing’, Robin Sundaram, Supplier Development Manager, Nestlé UK

Appendices

Forward

Background

Developing waste minimisation KPIs process



DEVELOPING WASTE MINIMISATION KPIs PROCESS

The principal aim of developing the waste minimisation KPIs was to build on the work Nestlé UK have already implemented to minimise waste. This experience helped to engage with suppliers and develop shared KPIs, which reduce cost and value lost, and focus on preventing waste across the supply chain. To ensure the project was a success for both Nestlé UK and its suppliers, buy-in from and collaboration with Nestlé UK’s Corporate Sustainability and Procurement Teams was secured. Commitment from Nestlé UK and its Tier 1 suppliers was essential as attendance at two workshops and review and agreement of the final KPIs and implementation plan were required. In addition, it was important to ensure the KPIs proposed were cost effective and fed into overarching business commercial decisions and drivers.

THE KEY ELEMENTS

The key elements of the approach are outlined below. By following these steps, it is possible to develop waste minimisation KPIs for suppliers that are focused, appropriate for their operations and achievable over a number of years.

Understand and review suppliers’ waste minimisation activities

• Gives a good indication of what your suppliers have already achieved

Develop the business case to adopt waste reduction KPIs

• This will help with supplier buy-in and engagement in the process.

• WRAP has a variety of resources to draw on to develop the business case

Develop a set of waste minimisation KPIs

1) Workshop 1 with suppliers: • Set the context and business case for developing KPIs, and the

importance of their role in doing so • Identify the key criteria and focus areas for the KPIs; barriers

and opportunities, and implementation mechanisms 2) Draw up draft KPIs and review with suppliers (incl.

implementation mechanisms)

3) Workshop 2 with suppliers: • Sign off the KPIs • Finalise the reporting and support mechanisms • Set up and initiate a supplier forum for ongoing activity and

communication

THE APPROACH FOR ENGAGING SUPPLIERS IN WASTE PREVENTION

Appendices

Back forward

KPI CONSIDERATIONS, IMPLEMENTATION AND REPORTING

When developing the KPIs it is important to take the following into consideration: • Who is the audience? Can the suppliers be grouped e.g.

into packaging and ingredients. This is important as it ensures that KPIs are developed by a specific audience, as not all KPIs will be relevant to all suppliers and some will need to be focussed to the products suppliers manufacture.

• Definitions and scope. Ensure everyone agrees with

definitions used in the KPIs e.g. waste and zero waste; and what is and isn’t included within the definition. WRAP was able to provide guidance on definitions and legal requirements. Agree what supplier sites are included e.g. UK sites only.

• Reporting. What mechanisms will be used to report

against the KPIs e.g. via a supplier platform or portal? How often and when should reporting take place? Clarify what the data will be used for and if it will be reported anonymously. The mechanism should not be onerous or duplicate information already reported. Will the information and data reported be audited? If so, agree on who should be used to audit the suppliers’ claims.

page 3 Developing waste minimisation KPIs process



Background

• Evidence required. Decide on what evidence, and level, is required to illustrate that KPIs are being achieved.

• Achievability of the KPIs. Not all suppliers will be at the same level and the KPIs need to reflect this by offering a tiered approach which allows suppliers to progress through the KPIs from compliance, through to advanced.

• Support and guidance. Identify what kind of support

is required to implement and report against the KPIs e.g. waste policy templates, access to WRAP material.

Appendices

back forward

THE RESULTS

By working as a dedicated team, and with suppliers, Nestlé UK, with WRAP produced a set of KPIs for their packaging and ingredients suppliers (see Appendix 2). By developing the KPIs with their suppliers, Nestlé UK have shared the value of the initiative, which ensured the suppliers were not only engaged from the onset but were very much part of a feasible and workable solution too.

WHAT NEXT FOR NESTLÉ UK?

Due to the success of the KPI development process the suppliers requested to continue to meet up twice a year in a formalised forum to engage on the topic of waste prevention and share best practice. Following the internal launch of the KPIs it was agreed to use a supplier network platform to share best practice, WRAP information and reporting against the KPIs. This is currently being developed and should be implemented in Autumn 2015.

For Nestlé UK the development of these waste minimisation supplier KPIs is a platform for the development of other environmental KPIs, such as water.

As the KPIs become embedded within the Tier 1 suppliers, it has been agreed to expand the use of the KPIs beyond the Tier 1 suppliers to Nestlé UK’s Tier 2 and 3 suppliers; and the suppliers’ suppliers.

page 4 Background Developing waste minimisation KPIs process



TIPS FOR SUCCESS

To develop successful workable waste minimisation KPIs the following steps are recommended:

• Buy-in from CSR, packaging, procurement and other teams.

• A business case to encourage suppliers to get involved – the benefits of taking part.

• Engagement with suppliers from the outset to guide the development of the KPIs and the implementation process.

• Develop KPIs which are specific to your different suppliers e.g. ingredients versus packaging.

• Ensure the KPIs developed recognise that suppliers are at different levels of advancement for implementing waste minimisation, and that reporting is not onerous.

Guidance and tools

To help drive out waste in the food and drink manufacturing and retail sectors, further guidance, tools and information can be found on WRAP’s website, here.

Reductions in waste through supplier networks of the type pioneered by Nestle will be a key part of Courtauld 2025 which is being developed by WRAP as the next phase of the Courtauld Commitment.

Appendices

back forward

http://www.wrap.org.uk/content/driving-out-waste-food-drink-manufacturing-and-retailing

APPENDIX 1: LIST OF SUPPLIERS WHO PARTICIPATED

First Milk Limited

Cargill PLC

RPC

ADM

Multipackaging Solutions

DS Smith

Massmould Limited

Mayr-Melnhof Packaging UK Limited

Graphic Packaging International

Tate & Lyle Europe

Camgrain Stores (Openfield Agriculture)

Charles Jackson & Company Limited

Kerry

Roquette UK Limited

Interflex



Background

back forward


Appendices

APPENDIX 2: INGREDIENTS SUPPLIER WASTE MINIMISATION KEY PERFORMANCE INDICATORS

LEVEL 1: FOUNDATION

Ambition: All Tier 1 suppliers by December 2016

Activity Evidence Data source, calculation method or

documentation

1. A supplier must have a waste policy Upload waste policy to supplier

platform

If a waste policy needs to be created,

download the template from the supplier

platform

2. A supplier must have a policy to

divert waste from landfill

Upload waste diversion from landfill

policy to supplier platform

If a waste diversion policy needs to be

created, download the template from the

supplier platform

3. Engage in and use the supplier

platform

Company logo on the platform

Evidence of use of the platform

Evidence of taking part in discussions,

sharing and uploading information

4. Duty of Care requirements for

handling waste (Environmental

Protection Act 1990) are fully met

Upload evidence requirements are

being met e.g. certificate/licence

Link to Act on platform

List of requirements and Code of Practice

which describes the requirements in full on

platform

5. A supplier must have a waste

management plan/procedure in place

Upload waste management

plan/procedure to supplier platform

If a waste management plan/procedure

needs to be created, download the

template from the supplier platform

6. Quantify total annual waste arisings Tonnes, by type e.g. food, packaging

etc (as per WRAP CC3/C2025

categories)

Download form from platform

Guidance and notes available from

WRAP/on platform



Background

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Appendices


LEVEL 2: MANAGEMENT



documentation 1. A % waste prevention target and date

has been set

Upload waste prevention target and date

set

Upload a minimum of 1 to 2 case studies

of best practice you have achieved to

illustrate meeting of this target

A best practice template is available on the

platform to capture the case study

2. Zero waste to landfill Audit certificate to show zero waste to

landfill has been achieved

Link to suggested auditor on platform

Definition on platform


management structure/system in place

Upload waste management structure to

supplier platform

If a waste management structure needs to

be created, download the template and

guidance from the supplier platform

4. All waste arisings are fully segregated

on site

% total waste arisings, split by

material/waste type

and final destination of segregated waste

per material/waste type e.g. %

paper/board sent for recycling

Data submitted to WRAP by Nestle for

CC3/C2025

5. Consider actively diverting surplus

food to charity and/or animal feed

Total waste diverted (tonnes), by

destination

Explanation if not able to divert food to

charity and/or animal feed

Examples of best practice provided on

platform

Links to charities provided on platform e.g.

Fareshare

6. There is pro-active engagement with

employees on waste prevention

Upload evidence of staff engagement

activities to the supplier platform e.g.

training material, posters etc

Number of staff trained/engagement per

activity

Link on supplier platform to WRAP and other

sources for case studies and training

materials/programmes



Background

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Appendices


LEVEL 3: LEADERSHIP

Ambition: All Tier 1 suppliers by December 2020 Activity Evidence Data source, calculation method or

documentation

Mandatory KPIs 1. A % waste prevention target

(decoupled from production) and

date has been set

Upload waste prevention target and date set

to supplier platform

Upload a minimum of 1 to 2 case studies of

best practice you have achieved to illustrate

meeting of this target

Tonnes of waste saved/reduced

Supplier to set a target based on current best

practice. This is to be identified in dialogue with

other suppliers, WRAP and Nestle via the supplier

platform



Data submitted to WRAP by Nestle for CC3/C2025

2. Waste prevention is actively

cascaded to own suppliers

% of a suppliers‘ Tier 1 suppliers engaged to

prevent waste


illustrating what you have achieved with

one/more of your suppliers to illustrate

meeting of this KPI

A case study template is available on the platform

Optional KPIs 3. Lean or other methods are being

pro-actively used to prevent waste

Upload lean management objectives

Upload a minimum of 1 to 2 case studies to

illustrate the adoption of lean management or

other methods

Tonnes of waste saved/reduced through lean

management activities

A definition of lean management and other

suitable methods provided by WRAP on the

supplier platform

Link to WRAP and other examples of lean

management and other suitable methods best

practice on the supplier platform

A case study template is available on the platform

Data submitted to WRAP by Nestle for CC3/C2025



Background

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Appendices


4. Waste prevention is integrated

into NPD and redesign processes

and buying specifications

Tonnes of waste prevented

Upload a minimum of 1 to 2 case studies to

illustrate the adoption of waste prevention

decisions in NPD or redesign activities

Documentary evidence of buying

specifications related to waste prevention

Tonnes of waste saved through integrating

waste prevention into NPD and buying

specifications

A case study template is available on the

platform

Link to WRAP and other examples of design for

waste prevention best practice on the supplier

platform


CC3/C2025

5. There is pro-active

engagement with employees on

waste prevention (it has become

business as usual)




Upload evidence that waste prevention has

become everyday practice e.g. quotes or

examples of staff implementing waste

prevention in their everyday activities/roles


activity






Background

back forward


Appendices

APPENDIX 3: PACKAGING SUPPLIER WASTE MINIMISATION KEY PERFORMANCE INDICATORS

LEVEL 1: FOUNDATION



documentation

1. A supplier must have a waste policy Upload waste policy to supplier

platform

If a waste policy needs to be created,

download the template from the supplier

platform

2. A supplier must have a policy to

divert waste from landfill

Upload waste diversion from landfill

policy to supplier platform

If a waste diversion policy needs to be

created, download the template from the

supplier platform

3. Engage in and use the supplier

platform

Company logo on the platform

Evidence of use of the platform

Evidence of taking part in discussions,

sharing and uploading information

4. Duty of Care requirements for

handling waste (Environmental

Protection Act 1990) are fully met

Upload evidence requirements are

being met e.g. certificate/licence

Link to Act on platform

List of requirements and Code of Practice

which describes the requirements in full on

platform

5. Must submit PRNs annually Upload evidence PRN submission Link to Environmental Agency website for

further information on PRN obligations


management plan/procedure in place

Upload waste management

plan/procedure to supplier platform

If a waste management plan/procedure

needs to be created, download the

template from the supplier platform

7. Quantify total annual waste arisings Tonnes, by type e.g. packaging, food

(e.g. from canteens) etc (as per WRAP

CC3/C2025 categories)

Download form from platform

Guidance and notes available from

WRAP/on platform



Background

back forward


Appendices


LEVEL 2: MANAGEMENT



documentation 1. A % waste prevention target and date

has been set


set






2. Zero waste to landfill Audit certificate to show zero waste to

landfill has been achieved

Link to suggested auditor on platform

Definition on platform

3. Design for reduced Nestle packaging

impact (primary, secondary and tertiary)

Evidence of packaging (NPD/redesign) to

(where feasible/appropriate):

o Increase recycled content

o Reduce weight

o Improve recyclability

Tonnes of packaging material type saved


CC3/C2025


sources for guidance of reducing the

environmental impact of packaging


management structure/system in place

Upload waste management structure to

supplier platform

If a waste management structure needs to

be created, download the template and

guidance from the supplier platform

5. All packaging waste arisings are fully

segregated on site

% total packaging waste arisings, split by

material type

and final destination of segregated waste

per material/waste type e.g. %

paper/board sent for recycling


CC3/C2025


employees on waste prevention





activity






Background

back forward


Appendices


LEVEL 3: LEADERSHIP

Ambition: All Tier 1 suppliers by December 2020 Activity Evidence Data source, calculation method or documentation

Mandatory KPIs 1. A % waste prevention target

(decoupled from production) and date has

been set


set to supplier platform




Tonnes of waste saved/reduced

Supplier to set a target based on current best

practice. This is to be identified in dialogue

with other suppliers, WRAP and Nestle via the

supplier platform




CC3/C2025

2. Waste prevention is actively cascaded

to own suppliers

% of a suppliers’ Tier 1 suppliers engaged

to prevent waste


illustrating what you have achieved with

one/more of your suppliers to illustrate

meeting of this KPI


platform

Optional KPIs 3. Lean or other methods are being pro-

actively used to prevent waste

Upload lean management objectives


to illustrate the adoption of lean

management or other methods

Tonnes of waste saved/reduced through

lean management activities

A definition of lean management and other

suitable methods provided by WRAP on the

supplier platform

Link to WRAP and other examples of lean

management and other suitable methods best

practice on the supplier platform


platform


CC3/C2025



Background

back forward


Appendices


4. Waste prevention is integrated into

NPD and redesign processes and buying

specifications

Evidence of packaging (NPD/redesign) to

(where feasible/appropriate):

o Increase recycled content

o Reduce weight

o Improve recyclability

Tonnes of waste saved through

integrating waste prevention into NPD and

buying specifications

Documentary evidence of buying

specifications related to waste prevention


to illustrate the adoption of waste

prevention decisions in NPD or redesign

activities


platform

Link to WRAP and other examples of design

for waste prevention best practice on the

supplier platform


CC3/C2025

5. Reduce post-production waste Tonnes of waste saved/reduced through

post-production waste reduction activities


to illustrate the adoption of post-

production waste activities and

collaboration with Nestle

Collaborate with Nestle on how to reduce post-

production waste e.g. ordering schedules and

thresholds


platform


employees on waste prevention (it has

become business as usual)




Upload evidence that waste prevention

has become everyday practice e.g. quotes

or examples of staff implementing waste

prevention in their everyday

activities/roles


activity






Background

back forward


Appendices

Waste & Resources Action Programme

The Old Academy 21 Horse Fair Banbury, Oxon OX16 OAH

Tel: 01295 819 900 Fax: 01295 819 911 E-mail [email protected]

www.wrap.org.uk

While steps have been taken to ensure its accuracy, WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate, incomplete or misleading. This material is copyrighted. It may be reproduced free of charge subject to the material being accurate and not used in a misleading context. The source of the material must be identified and the copyright status acknowledged. This material must not be used to endorse or used to suggest WRAP’s endorsement of a commercial product or service. For more detail, please refer to our Terms & Conditions on our website - www.wrap.org.uk

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