【Event】What’s in for Chinese Suppliers – Towards creating more value together

 
On June 5, 2015, econsense (Forum for Sustainable Development of German Business), China WTO Tribune and the Emerging Market Multinationals Network for Sustainability (implemented by GIZ) jointly organized The Second Responsible, Sustainable and Successful Supply Chain Workshop. This year’s workshop focused on responsible and sustainable supply chain relations with a particular focus on “what’s in for suppliers” and presented best practices on how to work with suppliers to create more value together.
 
“87% of our suppliers receive certifications. Last year, more than 50,000 suppliers sent us sustainable questionnaire and 70% of our suppliers used the e-learning tools,” Prof. Dr. Gerhard Prätorius, Head of Sustainability and Political Communication of Volkswagen thought that these data  show  the sustainable supply chain relations. He said, we should work with leading suppliers and furthermore, should develop more in-depth relationship with every supplier and partner.
 
Siemens set an example for localized supply chain management by taking local law into account and inviting suppliers and partners work together to realize sustainable development. Ms. Qiying Cai , Head of Procurement/SCM of Siemens & Supplier said  that Siemens established the IPE blacklist database to check supplier qualification on earlier supplier environmental performance.
 
Ms. Candice Fan from the Linde Group introduced the key points concerning supplier management. She said, “We will conduct document review, questionnaire, self-assessment on enterprise risk factors. We will review and discuss the potential value and risk, and encourage supplier to come up with risk mitigation plan. They are required to improve their business standard procedure in reference to Business Continuity Plans.”
 
BASF “1+3” CSR Project in supply chain in China has become a guiding post in building responsible supply chain. Mr. Victor Zhang, Director of Procurement Greater China of BASF told the audience BASF’s latest development on this project: they cooperate with East China University of Science and Technology to conduct training on sustainable development for suppliers, aiming to cover all Chinese suppliers in five years.
 
Suppliers’ CSR partnership with MNCs needs investing money and energy to deal with related issues and finally they will benefit from CSR partnerships with MNCs.
“A year ago, Deutsche Telekom told us that if Fingu join in CSR project, it would gain economic benefit. I doubted what they said and only saw what we will invest.” Ms. Shunhua Li from Wuhan Fingu Electronic Technology Co., Ltd said. But one year later, the performance of Fingu after its CSR partnerships with Deutsche Telekom reassures her. Fingu has reduced turnover rate by cutting overtime hours, ensuring employee safety and improving their living environment, and further reduced the cost and increased productivity.
 
Ms. Lu Ying, Head of Procurement China of Bayer Healthcare Company Ltd., believed the partnership with suppliers can explore win-win solutions. Bayer once produced a medicine package with complex folding patterns. After negotiation with suppliers to make change, the new package was welcomed by doctors and nurses and it also reduced production costs. Lu said, “This is a win-win solution and we also improved our partnership in the process.”
 
The Second Responsible, Sustainable and Successful Supply Chain Workshop  is one of parallel panel of the 10th International CSR Forum and the Award Ceremony of “2014 GoldenBee CSR China Honor Roll”, which was hosted by China WTO Tribune, co-hosted by CSR Europe, GIZ, CBCC, SHRM，econsense, Embassy of Sweden in Beijing and Business Social Compliance Initiative (BSCI)–Foreign Trade Association (FTA) and supported by GoldenBee Management Consulting.