Đề tài Responsible tourism supply chains picture source
Objectives
By the end of the unit participants will be able to:
• Understand the mechanics of supply chains and the
importance of building sustainability in the supply
chain
• Develop a sustainable supply chain policy and action
plan
• Implement a supply chain sustainability assessment
• Identify strategies to support suppliers to meet
supply chain sustainability goals
• Understand how to monitor the sustainability
performance of the supply chain and support
continuous improvement
By the end of the unit participants will be able to:
• Understand the mechanics of supply chains and the
importance of building sustainability in the supply
chain
• Develop a sustainable supply chain policy and action
plan
• Implement a supply chain sustainability assessment
• Identify strategies to support suppliers to meet
supply chain sustainability goals
• Understand how to monitor the sustainability
performance of the supply chain and support
continuous improvement
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- Unit outline Objectives Topics By the end of the unit participants will be able to: 1. Introduction to responsible tourism • Understand the mechanics of supply chains and the supply chains importance of building sustainability in the supply 2. Sustainable supply chain chain policy • Develop a sustainable supply chain policy and action development and plan action planning • Implement a supply chain sustainability assessment 3. Raising awareness and supporting suppliers to • Identify strategies to support suppliers to meet meet sustainability supply chain sustainability goals targets • Understand how to monitor the sustainability 4. Monitoring and performance of the supply chain and support evaluate sustainability continuous improvement performance
- What is a supply chain? • The system of moving of a product or service from supplier to customer • Results in natural resources, raw materials, and components being transformed into a finished product • Tourism supply chains involve core and ancillary tourism goods and services • The final product purchased in a general tourism supply chain is the holiday Picture sources: vov.vn/Uploaded/VietHoa/2012_11_21/Bieu%20dien%20van%20nghe.jpg http:// www.schoolanduniversity.com/images/page_uploads/Food-and-beverage-Management.jpg
- The tourism sector supply chain Picture source:
- Some other good reasons to develop a sustainable supply chain P • Improved profile / brand P • Improved market access P • Increased operational effectiveness P • Increased sustainability
- 93% of your supply chain is invisible – and why this matters to you! • Most supply chains today are so complex that companies don’t know exactly what’s happening in them • Poor practices in the supply chain can result in serious risk and reputation issues, legislation and litigation issues and lawsuits for false claims relating to human and environmental issues • The impacts of poor practices by others can and will eventually affect you Source: Rowe A. 2013, ‘93% of Your Supply Chain Is “Invisible”’, Network for Business Sustainability , Available [online]: Accessed: 09/02/2014
- Example: Putting responsibility into a component of a tour operator’s supply chain Dairy suppliers Hotel Fruit & vegetable suppliers Restaurant Canned goods suppliers Attractions Others TOUR OPERATOR TOUR Others Tour operator Restaurant Suppliers • Uses local destination guides • Employs local staff • Grow food organically • Employs local staff • Sources sustainable food • Do not sell endangered • Recycles • Implements Fair Trade animals • Informs guests of sustainability • Supports local sustainability • Have good working issues projects conditions • • Pays fair salaries • •
- UNIT 6. RESPONSIBLE TOURISM SUPPLY CHAINS TOPIC 2. SUSTAINABLE SUPPLY CHAIN POLICY DEVELOPMENT AND ACTION PLANNING
- The benefits of having sustainable supply chain policy in tourism P • Helps defend a company from legal disputes P • Demonstrates company commitment to sustainability • Promotes support of suppliers to achieve sustainability P objectives • Create greater stability and consistency in supplier sustainability actions resulting in the faster achievement of P sustainability objectives
- Conducting a sustainable supply chain baseline study What is it? Benefits V Helps find sustainability gaps The process of researching the V Determines the extent and type of current level of sustainability of current behaviour/practices in suppliers with the goal of sustainability V Determines attitudes towards identifying sustainability gaps sustainability and developing sustainability V Determines current indicator levels targets for improved (before intervention) V Assists establish and prioritise performance sustainability policy areas/ objectives V Provides a means to set realistic sustainability targets and measure progress
- A. Building an effective management team • Representation: Involve representatives from different internal departments and suppliers • Knowledge and experience: Ensure participants have good knowledge of key operational areas and experience or understanding of sustainable tourism • Organisation: Appoint a “policy sponsor” or “leader” for overall responsibility / ownership in developing and managing the policy
- B. Developing a baseline assessment methodology and approach • What information is required? • Who will collect it? • How will we collect it? • When will be collected? • Are there any issues will affect progress? Supplier documents & data Picture source:
- Examples of economic sustainability assessment criteria for suppliers Supplier economic sustainability assessment criteria Supplier pays above minimum wages Supplier implements strategies to avoid revenue leakages from local economy Supplier has policies on the purchase of local products and services Supplier pays / charges fair prices to producers
- Examples of social sustainability assessment criteria for suppliers Supplier social sustainability assessment criteria Supplier has contracts for all workers Supplier adheres to health and safety guidelines Supplier implements ongoing workplace training programme Supplier provides visitor codes of conduct to guests
- D. Implementing baseline study, reviewing and evaluating results 1. Implement the baseline study according to plan and evaluation criteria 2. Analyse results to understand: – Areas where suppliers are performing sustainably – Areas where improvements can be made – Which companies show most interest in improving sustainable – Level of companies’ capacity to improve sustainability – Opportunities to improve sustainability performance in companies 3. Prioritise suppliers to work with on achieving greater sustainability
- Effective policies and procedures • Identify • Set the vision performance P P areas • Reflect current • Offer flexibility P performance P • Meet • Are mutually government agreed upon P requirements P
- Example of responsible supply chain procedures A1 Tours Responsible Supply Chain Procedures In order to develop a sustainable supply chain, A1 Tours will: 1. Take a leadership role in sustainable supply chain management 2. Screen suppliers for their performance in social, economic and environmental issues management 3. Support suppliers to improve sustainability performance 4. Set minimum performance standards 5. Consult with stakeholders 6. Monitor compliance to agreements 7. Terminate business relationships if performance remains below standard or suppliers are unable or unwilling to work towards performance targets
- The InterContinental Hotel Group’s vendor code of conduct Source:
- Broader supply chain targets vs. Individual supplier targets HOTEL, TOUR OPERATOR, RESTAURANT ETC Broader supply chain standards & Supplier A Supplier B Supplier C Supplier D targets The overall number or percentage of suppliers that are to meet the given standards in a Supplier E SUPPLY Supplier F period of time CHAIN Individual supplier standards & targets Individual supplier The level of standards & targets improvement for The level of individual suppliers in improvement for key areas individual suppliers in key areas
- Influences on the setting and achievement of sustainability targets Available sustainability INFLUENCES AFFECTING Supplier’s capacity SETTING & ACHIEVEMENT standards for each OF TARGETS impact Type, severity and Organisation’s source of ability to influence sustainability the supplier impact SUPPLY CHAIN SUSTAINABILITY TARGET
- Sustainable supply chain action planning • Sets out the activities and resources required to support suppliers to meet sustainability standards and targets • Requirements: – Participation and agreement – Understanding of standards – Adequate resources including knowledge and skills
- Example of responsible supply chain action plan Environmental Action / Initiative Responsibility Start date Finish date Status/ Date achieved Conduct sustainability audits of suppliers giving John Smith Oct2013 Jan 2014 Underway priority to more accessible suppliers Assist hotel suppliers conduct waste quick scans Mary Munroe Feb 2014 Aug 2014 Not started Develop a supplier code of conduct and procurement Peter Pan Jan 2013 Feb 2013 Completed policy to support the sustainable supply chain policy Implement a sustainable supply chain training Greg Matthews Apr 2013 Aug 2013 Completed programme for key suppliers In progress/achieved In progress / risk of not being achieved Not achieved
- Key steps in developing a sustainable contracting system • Develop approach and procedures for implementation P of sustainability performance as a contracting criteria • Draft contractual clauses for minimum performance P requirements P • Establish procedures for supplier non-compliance • Appoint a staff member to manage sustainable supply P chain activities
- The importance of awareness and support in developing sustainable supply chains Raising awareness • Develop sustainability creates messages understanding, • Communicate sustainability participation and messages to suppliers commitment • Provide training, information, networks, Providing support assistance promotes action • Offer incentives and rewards
- Communicating messages about broad sustainability issues Match communication Encourage methods to feedback P characteristics of P suppliers Monitor responses Prioritise personal and support PPPcommunication P continuous improvement Keep communication constant with P regular updates
- Principles of effective awareness messages communicate CALL TO ACTION! BENEFITS grab HEAD HEART Be consistent
- Providing support to meet sustainable supply chain goals • The process of businesses helping Improved & more businesses is often referred to as b2b sustainable goods & services (“business to business”) exchange • b2b exchange refers to the dialogue and actions that take place between companies to create mutual benefits and gains • b2b exchange is a good way to foster B2B sustainability improvements in EXCHANGE tourism supply chains because: – You have an intimate understanding of your consumers ORGANISATION SUPPLIER – You have access to technology and information – By helping your suppliers you are helping yourself Awareness raising Capacity building Incentives Picture sources: Pixabay,
- The TOI’s recommendations on incentives for suppliers to meet sustainability goals • Suppliers need to be convinced R Higher rates of the advantages of taking R Longer-term contracts sustainability measures R Committed guarantees • Recognition and rewards help R Joint marketing foster positive action agreements • Develop a “preferred supplier” R More brochure space R Joint promotional scheme for suppliers that meet activities sustainability goals which R Favoured status in offers benefits such as: system sales searches Source: Tour Operators’ Initiative for Sustainable Development (TOI) 2004, Supply Chain Engagement for Tour Operators: Three Steps Toward Sustainability , TOI, France
- The steps involved in a supply chain sustainability evaluation Decide what you are Let your suppliers know about Evaluate and assess your monitoring the monitoring programme suppliers’ performance Tell your suppliers how they Foster continuous are performing improvement Picture sources: Pixabay,
- The 3 main types of indicators • Reflect changes in outcomes Performance • E.g. The number of employees with formal employment contracts • Reflect changes in commitment Process INDICATOR • E.g. The presence / absence of a minimum wage policy • Reflect changes in attitude • E.g. The percentage of Perception suppliers that believe their sustainability activities have improved community livelihoods Source: UNWTO & SNV Netherlands Development Organisation 2010, Manual on Tourism and Poverty Alleviation – Practical Steps for Destinations , UNWTO & SNV Netherlands Development Organisation, Madrid, Spain
- Example of letter communicating a sustainability supply chain programme Dear supplier, Benefits Thank you for agreeing to work with us to improve your sustainability performance. Consumers and governments alike are demanding greater sustainability and we believe that by starting now you and us will be ahead of the competition and also prepared for potential increased government regulations in the future. At a more direct level, we also believe our sustainability standards will provide immediate benefits to you in the form of improved worker performance, enhanced reputation and cost savings through greater efficiency . In order to measure the success of the programme we need to ensure our suppliers are meeting our supply chain sustainability standards. The key sustainability criteria we shall be monitoring of our suppliers include: Calculations SUSTAINABILITY CRITERIA UNIT OF MEASURE TARGET Criteria Supplier has policies on the purchase Formally approved company policy 1 local procurement policy developed of local goods and services document and approved within 6 months SOC Supplier provides employment Formally approved worker contract 50% of workforce have employment contracts for all staff documents contracts in 6 months, 100% in 1 year Supplier implements strategies to Formally approved action plan At least 3 activities are undertaken in 6 reduce waste Evidence of waste management months; 10 activities completed in 1 year activities ENV Our supply chain manger will contact you to review the progress quarterly, and kindly request your participation in providing evidence of performance to meet criteria such as power and water bills, action plans, policy Implementation, documents responsibilities
- Example results of a supply chain sustainability assessment Individual supplier assessment SUSTAINABILITY SUPPLIER UNIT OF MEASURE TARGET CRITERIA ABCDEFGHI Supplier has policies on 1 local procurement policy Drafted but Drafted but Formally approved the purchase of local developed and approved Yes Yes waiting Not started Not started Yes waiting Yes Not started company policy document goods and services within 6 months approval approval Supplier provides 100% of workforce have Formally approved worker employment contracts for employment contracts in 1 20% 50% 90% 0% 10% 0% 30% 100% 50% contract documents all staff year Supplier implements Evidence of waste 10 initiatives completed in strategies to reduce 4 6 6 2 4 0 6 6 4 management activities 1 year waste Individual supplier performance assessment Poor Average Good Poor Poor Poor Poor Excellent Average Supply chain assessment NO. NO. NO. PROCUREMENT POLICIES SUPPLIERS EMPLOYMENT CONTRACTS SUPPLIERS WASTE MANAGEMENT SUPPLIERS Approved local procurement 75%-100% of staff in employment contracts 2 >5 waste management activities 4 policies 4 50%-74% of staff in employment contracts 2 <5 waste management activities 4 Draft local procurement policies 2 25%-49% of staff in employment contracts 1 0 waste management activities 1 No local procurement policy 3 0%-24% of staff in employment contracts 4 TOTAL 9 TOTAL 9 TOTAL 9
- Example of presenting sustainability assessment results of a supply chain Suppliers with staff in formal employment contracts 75%-100% of staff in 22% employment contracts 50%-74% of staff in 45% employment contracts 25%-49% of staff in employment contracts 22% 0%-24% of staff in 11% employment contracts Waste management initiatives in 2013 Suppliers with local procurement policies 11% >5 waste management Approved local activities 33% procurement policies 45% <5 waste management 45% Draft local procurement activities policies 44% 0 waste management No local procurement activities policy 22%
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