Reviewing Procurement Processes for an Online Retailer

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Situation

A large online electrical retailer operating in the UK and Germany, with logistics and recycling divisions, needed to understand how the growing pressure of integrating sustainability into organisations would impact the business and how to proactively respond to the risks and opportunities.

Anthesis was engaged to review the company’s current procurement policies and processes for all categories of Goods Not for Resale (GNFR) within its supply chain and identify gaps and areas for improvement.​

Solution

Anthesis analysed the group’s current supply chain procurement processes against best practice and risk models and identified key ESG risk and opportunity areas in each procurement category.

The suppliers onboarding process was reviewed in detail and a number of stakeholder interviews were conducted to investigate current supplier engagement practices.​ Anthesis delivered a clear prioritised listing of GNFR categories and key suppliers by risk, with recommendations on areas for focus and action.

As part of the supplier due diligence process and guidance to the GNFR procurement team, an enhanced supplier onboarding ESG questionnaire was developed with new social and environmental requirements. The questionnaire ensures that manufacturers, suppliers, or service providers have their own clearly defined ethical working practices, including suitable anti-slavery and Modern Slavery Policies and processes within the business and supply chain.

Impact

Anthesis developed a new Supplier Code of Conduct, a revised Modern Slavery Statement, and advice and recommendations on other procurement-related policies as a foundation for progress towards best practice. The Code will be rolled out initially to suppliers that have been assessed for a potential higher risk of modern slavery. This includes confirmation that suppliers comply with the requirements of the Modern Slavery Act 2015. Where any red flags are identified, further discussions will take place with these suppliers and relations assessed as required.

The project enables the retailer to have improved transparency and traceability across its supply chain by improving the process of onboarding suppliers.