Our client, managing a network of 18 SME suppliers, sought to improve operational efficiency and performance across their supply chain. Over a 6-week project, they engaged these suppliers in a targeted initiative. With 15 of the 18 suppliers completing the assignment, the project achieved an impressive 80% conversion rate, driving significant improvements in supplier operations. This case study highlights the challenges addressed, the solutions provided, and the positive results for both the client and their suppliers.
The business challenge
A prominent technical services provider for buildings, plants, and infrastructures faced a significant challenge with regards to their Scope 3 emission reduction ambitions. While large suppliers could provide sustainability data via platforms like Ecovadis or IntegrityNext, many small and medium-sized enterprise (SME) suppliers found these tools overwhelming and costly. The client planned to use the free "Eco-Cockpit" tool to standardize the inventory of Scope 1 and 2 emissions for these SME suppliers. However, initial validations revealed that these SMEs lacked the capacity to conduct thorough Scope 1 and 2 evaluations. The project aimed to establish a "hands-on support factory" as a pilot to assist 18 nominated SME suppliers in Germany, ensuring they could collect necessary data, use the Eco-Cockpit tool effectively, and set up their own GHG emission reduction roadmap.
The Approach
The project team implemented a pragmatic and hands-on approach by directly engaging with suppliers to explain the targets, relevance, and usage of the provided tools and templates. By leveraging the client's tools, the team ensured that data was accurately collected, in the correct format. To maintain progress and transparency, the team submitted weekly written reports and held bi-weekly alignment calls with the project sponsor. Key success factors encompassed providing guidance, demonstrating content expertise and managing change, particularly for suppliers who showed hesitance, therefore ensuring they adopted the client's goals. The establishment of a direct communication channel between the project team and the sponsor facilitated swift escalation and resolution for any supplier non-cooperation.
Results
- The project successfully demonstrated the effectiveness of the proposed approach. 15 of the client’s suppliers provided their own CO2 footprint data along with an initial roadmap for improvement. Collaboratively, the team and suppliers developed comprehensive CO2 emission reduction plans aligned with the client's sustainability goals.
- The project was delivered on time, meeting the six-week deadline following an expedited onboarding and kick-off process.
- This success enabled a full-scale rollout to engage additional suppliers, ensuring the client's scope 3 emission reduction ambitions remained on track.
We are at risk of not being able to take along our long tail of small suppliers to achieve our Scope 3 ambitions
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