Options for Action Roadmap, Toolkit, Tools & Methods

Section ID Primary
E010 Textblock-Element

Options for Action

E010 Textblock-Element

Roadmap

The roadmap shows the chronological sequence of steps in a collaboration with suppliers for responsible management in an international context. For this purpose, the roadmap outlines a continuous process that can be started anytime, according to the maturity level of responsible management and the business relationship, i.e. when entering a new buyer-supplier relationship and in an existing one. Having completed the third phase of the roadmap, the cycle starts all over again.

The results suggest that both formal and more informal approaches are needed in each of the three phases. The formal approach is based on clearly defined tools that are easy to document. By comparison, informal methods are less clearly defined and, therefore, often difficult to document.

The roadmap comprises the following three phases:

E040 Bild Einzeln
E010 Textblock-Element

Toolkit

The toolkit presents the tools and methods for successfully implementing the concept of responsible management in the international supply chain (good practices). Since the company’s ability to influence the supplier and the associated ESG risk level impact the design of responsible collaboration, this section reviews the tools and methods to use in the respective constellations.

E040 Bild Einzeln
E010 Textblock-Element

Tools and methods used independent of the supplier’s ESG risk level

Tools and methods used regardless of the ESG risk level associated with the supplier, are applied even if the supplier poses a low-level ESG risk. Except for ‚Äėnon-critical‚Äô suppliers, with whom no tools and methods are used in the case of low ESG risk, mainly formal tools are used to create the framework conditions.

‚ÄėStrategic‚Äô relationship:

1) Laying the foundations:

Establishing processes:

2) Learning:

Knowledge transfer:

3) Monitoring and promoting:

Aligning interests:

 

‚ÄėBottleneck‚Äô relationship:

1) Laying the foundations:

Establishing processes:

3) Monitoring and promoting:

Aligning interests:

 

‚ÄėLeverage‚Äô relationship:

1) Laying the foundations:

Establishing processes:

 

‚ÄėNon-critical‚Äô relationship:

None

E010 Textblock-Element

Tools and methods used in case of elevated supplier ESG risk levels

Suppliers with an elevated ESG risk level can pose a major risk in legal and financial terms as well as in terms of a company’s image and legitimacy. Even if a company would generally like to avoid working with risky suppliers, doing without such business relationships is not always possible or economically justifiable. Therefore, companies try to ensure that their suppliers act responsibly by using resource-intensive tools and methods.

If a supplier represents an elevated level of ESG risk, the following tools and methods are used, depending on the type of relationship and hence the company’s ability to influence the supplier.

E010 Textblock-Element

Tools and Methods