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A key area that benefits from NIP’s approach and expertise is that of supply chain management, where there needs to be a dual focus:
- Supply chain transactions – traditional operational considerations, such as maintaining supplier directories and ratings, resourcing, availability, etc
- Information about the supply chain, such as ethical sourcing and trading, standards compliance, ongoing auditing and supplier relationship development
It was traceability that led NIP into the area of supply chain management and brand protection when, in 1999, it launched a worldwide online organic crop management system with full produce traceability – for both industry and consumers – through to farmers’ detailed, accurate and up-to-date crop records and certificates
First tier suppliers filled in an interactive questionnaire (written by Bureau Veritas) about themselves and one for each of the sites they source from, with the option of delegating responsibility for this task – via the system – to these sites.
The ninety questions covered areas such as working conditions, health & safety, wages, hours, facilities, environment, animal welfare, legislative compliance and child labour. Non-compliances were automatically flagged-up and documented, and targets set and agreed for compliance, all within the system.
Other Site Profile modules that Waitrose have introduced include HACCPs, dissemination of documents and statistics, relationship information, a supplier directory with ratings and planning worksheets.
Waitrose benefits from aggregate reporting on all of the modules they use, enabling them and – where appropriate – third parties (such as Bureau Veritas) to analyse data, develop strategy and pinpoint areas of concern that can be instantly communicated to suppliers.
John Foley, Head of Fruit and Vegetable Buying within Waitrose, says:
“Site Profile demonstrates the scope and potential of online supply chain management. It has enabled Waitrose to more effectively communicate standards to its suppliers and more accurately identify and address areas of concern.”