Domestic Supply Chain

Domestic Supply Chain

Domestic supply chain

Our Procure to Pay (P2P) system was incorporated into our procurement standard operating procedure in March 2015. As a result, we have been able to access considerably more accurate and comprehensive spend data, allowing us to rationalise the number of non-trade suppliers in our system. This has increased the visibility and management of purchase orders (POs) issued for products and services. As at June 2016, the procurement team achieved 98 percent of our non-trade spend being covered by P2P POs.

The procurement team have established policies, procedures and guidelines for engaging and assessing the suitability of third-party providers. This allows us to proactively evaluate and minimise risk in the supply chain. We seek to work with ISO 9001 and ISO 14001 compliant businesses to ensure the effort to procure services sustainably is managed in an end-to-end process through the direct and indirect supply chain.

As part of our Supplier Relationship Management (SRM) framework, we have been able to focus on achieving outcomes for key contracts including environmental and labour factors, predictive supply patterns, cost and competitive advantage, and the delivery of higher levels of quality, performance and innovation.

 

Key third party providers managed under our SRM program and related sustainability focuses include:

  • DHL Supply Chain - domestic transport optimisation
  • SIMS, Close The Loop and Tessam - recycling services
  • Compumenn - carbon emissions
  • Veolia – waste management

 

Orora Packaging - recycled content and light weighting of packaging of remanufactured parts for reuse

Bayton Group - safe disposal of liquids, process improvements for waste classifications and minimising waste to landfill.

DHL Supply Chain, PUB, and Veolia report environmental data directly into our environmental management and reporting system, ENVIZI. Our objective for the next reporting period is to have our newly appointed travel management company also automate reporting on carbon impact from employee travel into ENVIZI.

 

This integrated, automated reporting process will allow us to establish regular reviews of key contracts and address any anomalies that may be identified through performances analysis. Our SRM function continues to focus on improving ongoing supplier management and assessment. Quarterly, half yearly and annual reviews are conducted with our key supply chain partners to manage the performance, capabilities and ongoing relationships. This has been bolstered by the implementation of our contract management system, launched in July 2016, which gives us the ability to centrally house, manage and track our third party supplier agreements as a fundamental element for our function.

 

Procuring responsibly outlook
Ensure environmental, social and governance standards are applied through the corporate procurement framework.
14/15 – 15/16 objectives How did we do?
Eighty percent of existing supplier expenditure to be reviewed and signed off against our supplier sustainability code of conduct. In Progress – Delayed implementation of the P2P system meant the transition of all suppliers to PO did not happen in 14/15. However, all suppliers in the system were informed of the changes and our expectations through our procurement policy and supplier code of conduct.
PO terms and conditions were updated to reflect the changes and point suppliers to our supplier portal for the latest version of our documents.
Establish new supplier portal on the Fuji Xerox Australia corporate website. Met Supplier portal launched.
Deploy Oracle system as the enterprise resource planning tool, facilitating 100 percent upfront screening of new suppliers prior to order placements.

Met – All new suppliers are pre-screened and sign compliance to our code of conduct before being issued with a PO to do business with us.

[G4-EN32], [G4-LA14]

15/16 objectives How did we do?
Update supplier portal with the changing needs of the business. Met –Supplier portal updated with additional artefacts such as Information Security Management System questionnaire.
Utilise the Oracle ITSS system to: In progress -(i) We will never be able to digitise 100 percent of incoming invoices but we are working with suppliers to digitise the receipt, processing and archiving of invoices where possible.
(i) Digitise invoice management practices (ii) The capability for an automated invoice process is now available and we are progressively transitioning suppliers for more efficient processing of invoices.
(ii) Reimburse suppliers in a timely manner for services rendered.
Embed our vendor management framework into the procurement framework and deploy a consistent SRM for the business. Met – February 2016.
Transition all applicable non-trade spend to PO. Target: In progress -
80 percent by October, 2015 72 percent byOctober, 2015
95 percent by year-end, 2015 77% at year-end, 2015.
16/17 objectives
Design and begin deployment of th new contract management system to centrally manage and track all third party contracts.
Consolidate relevant artefacts to the contract management system for at least 40 percent of our active suppliers to manage continuous improvement activities.
Reduce the number of active suppliers in the P2P system from 3,000 to 1,500 to enable the business to better manage and drive best practices in procurement.
P2P spend under PO targets: 98 percent by December, 2016 and 99 percent by 31 March, 2017.
Develop and publish a catalogue of supplier capabilities and preferred key supply chain partners in procurement WIKI.
Ensure procurement meets the requirements for ISMS ISO 27001:2013 certification and ISO 9001:2008 and ISO 14001:2004 recertification in 16/17.
 
 
   
   
 
   
   
 
   
   
   
   
   
   
   
   
   
 
 
 
 
 
 
 
Procuring responsibly outlook
Ensure environmental, social and governance standards are applied through the corporate procurement framework.
14/15 – 15/16 objectives How did we do?
Eighty percent of existing supplier expenditure to be reviewed and signed off against our supplier sustainability code of conduct. In Progress – Delayed implementation of the P2P system meant the transition of all suppliers to PO did not happen in 14/15. However, all suppliers in the system were informed of the changes and our expectations through our procurement policy and supplier code of conduct.
PO terms and conditions were updated to reflect the changes and point suppliers to our supplier portal for the latest version of our documents.
Establish new supplier portal on the Fuji Xerox Australia corporate website. Met – Supplier portal launched.
Deploy Oracle system as the enterprise resource planning tool, facilitating 100 percent upfront screening of new suppliers prior to order placements. Met – All new suppliers are pre-screened and sign compliance to our code of conduct before being issued with a PO to do business with us.
[G4-EN32], [G4-LA14]
15/16 objectives How did we do?
Update supplier portal with the changing needs of the business. Met –Supplier portal updated with additional artefacts such as Information Security Management System questionnaire.
Utilise the Oracle ITSS system to: In progress -(i) We will never be able to digitise 100 percent of incoming invoices but we are working with suppliers to digitise the receipt, processing and archiving of invoices where possible.
(i) Digitise invoice management practices (ii) The capability for an automated invoice process is now available and we are progressively transitioning suppliers for more efficient processing of invoices.
(ii) Reimburse suppliers in a timely manner for services rendered.
Embed our vendor management framework into the procurement framework and deploy a consistent SRM for the business. Met – February 2016.
Transition all applicable non-trade spend to PO. Target: In progress -
80 percent by October, 2015 72 percent byOctober, 2015
95 percent by year-end, 2015 77% at year-end, 2015.
16/17 objectives
Design and begin deployment of th new contract management system to centrally manage and track all third party contracts.
Consolidate relevant artefacts to the contract management system for at least 40 percent of our active suppliers to manage continuous improvement activities.
Reduce the number of active suppliers in the P2P system from 3,000 to 1,500 to enable the business to better manage and drive best practices in procurement.
P2P spend under PO targets: 98 percent by December, 2016 and 99 percent by 31 March, 2017.
Develop and publish a catalogue of supplier capabilities and preferred key supply chain partners in procurement WIKI.
Ensure procurement meets the requirements for ISMS ISO 27001:2013 certification and ISO 9001:2008 and ISO 14001:2004 recertification in 16/17.