From polluting the environment to creating sweatshops, poorly managed supply chains can tarnish the reputation of any company – not only that it makes good business sense. Many global corporations realize this, which is why they have been so progressive in maintaining supply chains that hold themselves accountable for everything from employed labor to the eco-friendliness of the parts they use. And many companies actually report publicly on their progress and efforts.
Doing its part, IBM has just released its corporate responsibility report for 2008, much of which is dedicated to its supply chain. Here are a few highlights from page 32 "Supply Chain Responsibility: A commitment to collaboration":
-During 2008, IBM continued to implement its Supply Chain Social Responsibility initiative across its global network of suppliers. By the end of 2008, we had completed a cumulative total of 553 initial audits; including expansion into three additional growth market countries (36 initial audits):
Argentina, Malaysia and Vietnam.
-In 2008, IBM spent $1.5 billion inside the U.S. and $745 million internationally with first-tier diverse suppliers.
-In 2008, IBM’s operations worldwide processed 42,302 metric tons of end-of-life products and product waste. These operations reused or recycled 96.9 percent of the total amount processed and sent only 0.6 percent to landfills or to incineration facilities for treatment, versus IBM’s corporate goal of minimizing its combined landfill and incineration rate to no more than 3 percent.
While the surveys that IBM has conducted with its suppliers prove that more work needs to be done, I couldn't imagine having a supply chain that didn't take on this challenge. Having $38 billion in spend, as IBM does, gives a company a lot of purchasing power to encourage suppliers to adopt standards and practices that in many established countries are taken for granted. But again it's not just because IBM wants to be a "good-doer" as stated in the report, these efforts will "result in higher quality goods and services for our customers."
Posted by IIE Blogs at 07/17/2009 09:52:22 AM |
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