SHARING SUCCESS - enviromentor.co.uk Sharing... · Profiting from supply chain partnerships The enthusiasm of the participating suppliers was impressive and helped to make environmental

SHARINGSUCCESSProfiting from supplychain partnerships

The enthusiasm of theparticipating suppliers wasimpressive and helped tomake environmentalimprovements for theircompanies become a reality.Roger Papworth, Envirowise Supply Chain Programme Manager

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2 SHARING SUCCESS Profiting from supply chain partnerships

In 2002, Envirowise launched a pilotscheme, working with retailers andtheir supply chains to improve theirenvironmental performance andmaximise profit margins. The resultsof the pilot scheme were staggering -potential savings in excess of£1.9 million were identified in just afew months and by the end of thefirst year, £2.34 million had actuallybeen saved.

This was just the beginning. By popular demand,Envirowise relaunched the scheme in 2003 with apersonal commendation by Margaret Beckett, thethen Secretary of State for the Environment, Food &Rural Affairs. The scheme has continued to evolve,and now in its sixth year*, Envirowise has extendedthe support to manufacturers and service sectororganisations, having helped 37 host organisationsand 612 suppliers to integrate resource efficiency intotheir corporate social responsibility and businessstrategies. Many of these host organisations havecontinued to participate year on year.

How does the Supply ChainPartnership Forum work?The formula for a successful Supply Chain PartnershipForum (the Forum) is simple. Envirowise works with hostorganisations which invite key suppliers to join them in apartnership to improve business efficiency jointly,through minimising waste and maximising cost savings.

Envirowise provides individually tailored launches foreach host and their suppliers - we even supply thespeakers. Hosts invite around 50 key suppliers tolearn about the benefits of the approach, get practicalideas on how to reduce waste, water and energy andto sign up for the free support available fromEnvirowise, as a participant of the Forum.

All suppliers are invited to take up the offer of a freecompany visit. These on-site reviews, conducted byexpert advisors, identify ways to improve efficiency,reduce environmental impact and make cost savings.Visits by approved Envirowise advisors are guaranteedto provide impartial and confidential advice.

All suppliers are also invited to attend environmentalworkshops delivered by specialised trainers. Theseworkshops cover the main environmental and costdrivers facing industry - waste and water, packaging,clean design, energy, green purchasing, transport andlogistics, and environmental management systems.

Potential savings in excess of £12.45 millionwere identified over the five years of theForum, since 2002, and by the end of 2006, hosts and their suppliers had actually saved £9.19 million.

* At the time of publication.

Envirowise Advice Line 0800 585794www.envirowise.gov.uk

SHARING SUCCESS Profiting from supply chain partnerships 3

Feedback is vital. Each host and supplier iscontacted six to nine months later, once they havehad the opportunity to make changes and measureactual savings and improvements. The impactassessment results have been impressive - in justfour years, £9.19 million has actually been saved,with more results to come from last year’s Forum2006 (to be completed in December 2007).

What makes the Forumsuccessful?Three factors contribute to the continued success ofthe Forum:

• Envirowise provides an independent, impartialforum for companies to partner with theirsuppliers, and gives them the knowledge andtools to take action.

• The Forum encourages and equips the host andits suppliers to work together inventively to findsolutions to problems.

• Envirowise’s continuous support throughout theForum helps to keep momentum going and stopsprogress slipping by the wayside.

What additional benefits have theparticipants gained?Getting involved is not only relevant to the economics,efficiency and environmental impact of the supplychain, but can also make a great opportunity forpromoting your company in a positive light.

• Feature in an Envirowise case study which willdemonstrate practical actions and encouragereplication within other organisations.

• Dozens of hosts and suppliers have presentedtheir findings, improvements and action planswhilst attending workshops, as part of the Forum,and benefited from the positive ideas andcomments from others.

Host OrganisationsThe host organisations that have been involved over the years include some of the biggest names in the UK:

2002 PIONEERS OF THE PARTNERSHIPAPPROACH


Boots the Chemists and Center ParcsLtd are two of the founder hostorganisations of the Forum,committing to the programmeoriginally in 2002. Both companieshave continued to participate year onyear and have seen clear benefits totheir suppliers as well as themselves.

Boots is the UK’s leading health and beautyretailer, and the largest by sales in Europe, witharound 1,400 stores in the UK serving around8 million customers every week. Managing the supplychain is an important function of the business, as anincreasing number of shoppers want to know exactlywhat they are buying, where it has come from, how ithas been made, and whether it is an environmentallyresponsible choice. Boots branded products aremanufactured by approximately 600 suppliercompanies and the Forum has helped Boots ensurethat they are produced in an ethical andenvironmentally responsible manner. Savings ofaround £688,000 have been made by the 38suppliers that took part in the Forum.

Boots recognised that working with Envirowise in theForum was an excellent way to raise the profile ofgood environmental practices within its supply base ofSMEs . The past five years have certainly proved this.

The quality of the expertise andcommitment of Envirowise to our suppliers overthis period has never failed to impress,consistently delivering results in line with Boots’environmental aims. Envirowise engages withboth retailers and suppliers alike in a languagewhich makes sense. The practical application ofenvironmental management and resulting costsavings very quickly become a reality.

Holly Garrad-Cole, Supplier Assessor, Boots ’’

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Through this initiative, we can support andmentor our suppliers to work towards theconcept that Center Parcs is a sustainablebusiness within a sustainable environment. Weare looking to our suppliers to do the same.

Simon Kay, PR Manager, Center Parcs Ltd

Five years on from the initial Envirowiseproject Peri-dent now ensures that all waste isconsidered for recycling and we have increasedthe percentage of waste that we recycle year onyear. During the same period we have increasedthe revenue from recycled material to a pointthis year where we are actually recovering morethan our costs to send to landfill. We are nowconsidering the environmental aspect when welook to developing new products in line with ourcustomers so that we also create less wastefrom source.

Stuart Scott, Planning and Information Manager,Peri-dent



Center Parcs Ltd revolutionised the holidaymarket in the UK by offering short-break holidays ona year-round basis. Without doubt, Center Parcs is aflagship within the leisure industry, for itsenvironmental philosophy, policy and practice. As abusiness, Center Parcs recognises that it has animpact on the environment through day-to-dayactivities, the development of villages and theextension of its influence into the wider community.This is why Center Parcs scrutinises any impact itssuppliers may have when carrying out any businessactivities on its behalf. As one of the first hosts tosign up to the Forum in 2002, Center Parcs hassuccesssfully mentored 52 suppliers, including Inman& Co (see overleaf), with savings of around £914,000.

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Peri-dent closes the loop with rawmaterials waste Peri-dent was one of the first suppliers ever to signup to the Forum. Based in the Borders, Scotland, thecompany is a manufacturer of oral dental careproducts such as dental floss, interdental brushes andbreath freshener, and is a supplier to Boots. After thefirst Forum meeting in 2002, Peri-dent began usingposters and staff briefings to raise awareness andeducate staff about the benefits of changing practicesto reduce waste. Initial savings came from ideas toreduce packaging waste which also led to improvedspace utilisation throughout the company andsustainable savings. Five years on, the companycontinues to look for new opportunities to be moreefficient whilst also benefitting the environment. Lastyear, for example, raw materials waste from themanufacturing process was recovered and sold forremanufacture. The valuable polyethyleneterephthalate (PET) and polypropylene waste attractsa revenue of around £21,400/year for the companyand at the same time reduces landfill waste by220 tonnes/year.

The Envirowise programmeprovided a useful framework to combineenvironmental and business soundpractice. If you can find a significantenvironmental benefit, there’s usually asimilar business benefit. Staff quickly found thatit was not just topical but worthwhile to getinvolved in these green issues. I recommendevery business to get involved in some way withEnvirowise to improve their environmental andbusiness performance.

Stephan Hollingshead, Deputy Chief Executive, Inman & Co (Electrical) Ltd


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Electrical wholesaler drives downwaste and costsCenter Parcs supplier Inman & Co (Electrical) Ltdis an electrical wholesaler, and is the sole distributorof Philips Consumer Electronics products in the UKto the independent retailer. Current turnover is around£18 million for 2006-7, with a loyal, dedicatedworkforce of 90.

Inmans takes environmental management issuesseriously. It has carried out an environmentalprogramme in line with business efficiency and hasreduced fuel consumption, energy use and wastecosts. In April 2005, Inmans received an Envirowiseaward for Environmental Excellence, in recognition ofits achievements.

Fuel consumption of the delivery fleet has improvedby over 10% through the introduction of vehiclespeed limiters. The maximum speed of vehicles wasset at 56 mph, rather than 70 mph. Drivers wereinitially apprehensive, but operation across the wholefleet confirmed initial findings that the vehicles werenot taking significantly longer to complete their runs.Typical fuel consumption has improved from 14 to 16mpg and there has been an added benefit of feweraccidents. The overall saving is around £15,000/year.

A number of changes have been made to reduceenergy use. For example, infrequently occupied areashave light sensors, so they are lit only when a personenters that area. The main open plan office also hasa light level detection system, which switches offelectric lighting when natural light is sufficient. Timershave been fitted to air-conditioning units and officeheating to prevent them being left on overnight and anew radiant heating system has improved theeffectiveness of space heating in warehouse areas.Energy costs have been reduced by around 20% -some £5,000/year.

Water consumption has been reduced by the use ofpush taps, saving 15% of the total waterconsumption - some £300/year: a small figure, butwith a very quick payback. Managing packaging andpackaging waste has also seen a number ofimprovements. Waste collections, and hence thecost, have reduced by around 75% or £6,000/yearthrough recycling and rationalisation, and the wastenow provides a small income stream.

pioneersEnvirowise Advice Line 0800 585794www.envirowise.gov.uk

Manchester United believes it is the rightand proper thing to mentor our suppliers aspart of our commitment to the local andinternational community. The Forum hashelped us to make this an enjoyableexperience and we are pleased andencouraged about how effective it’s been forour select group of suppliers, particularly oursmaller suppliers. It’s been a great experienceand very worthwhile.

Keith McIntosh, Health, Safety and Environment Manager,Manchester United Ltd


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2003 CHAMPIONS OF SUPPLY CHAIN LINKS

Manchester United Ltd is thecompany behind one of the mostfamous football clubs and is proud tobe working towards environmentalsustainability. At Manchester United,being a responsible football clubmeans being part of the community inthe widest sense.

The company recognises that not only will itsperformance be measured by the success on thefield of play, or profitability as a business, but also byits impact on the quality of life in the community andon the environment it shares. Manchester United isan enthusiastic supporter of the 54 suppliers itrecruited to the Forum and continues to take partyear on year. Now in its fifth year as a hostorganisation, Manchester United has seen suppliersbenefit from more than £510,000 of savings fromenvironmental improvements.

When environmental issues are at the topof everybody’s agenda the Forum helped ussave both energy and money which kept ourcustomers and Directors happy. As a selectsupplier to Manchester United we are gratefulfor the introduction that Keith McIntosh gave usto Envirowise. I would recommend the Forum toany company serious about saving money andreducing energy.

Fraser Watson, Environmental Manager, Althams Catering Butchers

Catering company cuts costs andwasted resourcesAlthams Catering Butchers was established in1856 and now, 150 years on, is still owned by familymembers and has grown considerably in size. Itsupplies naturally reared and traditionally preparedquality assured meat from local farms within a 70mile radius of the factory in Morecambe. Thecompany has grown extensively, embracing adelivery area from the North of England to theMidlands.

Althams joined the Forum as a key supplier toManchester United, and has made considerableefforts to be more efficient with energy use and divertwaste materials from landfill through recyclinginitiatives. All incandescent light bulbs and striplighting have been replaced with energy efficientbulbs, saving money whilst lasting up to ten timeslonger. Waste cardboard is baled and recycled,reducing landfilled waste by 32 tonnes. Savings forthe site are estimated at around £19,720/year andthe company is continuing to look for opportunities toimprove resource efficiency even further.

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champions

We have an excellent relationship withManchester United. Keith McIntosh has been agreat mentor and his enthusiasm has rubbed offpositively on our business approach. We wantto be successful in what we do - and beenvironmentally aware with our products anddistribution services.

Andrew Robinson, Managing Director, Rigby Taylor Ltd ’’‘‘

Stepping stone for turf productssupplierRigby Taylor Limited provides a one-stop-shop forgrounds maintenance and weed control products forthe sports turf, landscaping and amenity market,including grass seed, fertilisers, pesticides, white-liningmaterials, top dressings and soil conditioners. Thecompany currently supplies most Premiership footballclubs, including Manchester United, and many leadingScottish football clubs. It has 100 employees and anannual turnover of around £17 million.

One of Rigby Taylor’s initialactions was to review the backdoor wastes at its Horwichwarehouse. Improved controland compaction of wastepackaging saved £2,284/year.Further savings in transportationcosts were made following a review of distributionoperations. Increasing direct deliveries from RigbyTaylor’s suppliers to customers eliminated the needfor additional routing and handling by warehouse staff.Combined with optimised delivery rates and the co-ordination of aggregated deliveries, total savings werearound £34,150/year. This was just the start for RigbyTaylor, with more ideas generated as the companyextended the Forum to involve its own suppliers.

Halfords has gained an improvedunderstanding of environmental issues, and hashelped to join up thinking on these issuesacross our supply chain. Our suppliers haveidentified some fantastic results within shorttimescales. Halfords’ commitment to social andenvironmental improvements is ongoing and weaim to continue learning from Envirowise andother parties involved in the Forum.

Chris Hall, Head of Quality and Cost Reduction, Halfords


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‘‘We’ve taken steps to enhance our servicesand products for our customers whilstbenefitting the environment – but we haven’tstopped there. With a move to our newpremises this year, we’ve built in measures toreduce our own water use, energy and waste,all of which will provide a long-term reduction inoverheads and reduce our environmentalfootprint.

Geoff Wray, Group Distribution Manager, The Danwood Group

Office supplier reducesenvironmental footprint

The Danwood Group is the largest independentsupplier of office solutions in the UK, includingprinting, faxing and copying. Since it was establishedin 1971, Danwood has worked with key partners toensure its clients can enjoy and benefit from the skillsand capabilities that Danwood offers within the printmanagement arena. Joining the Forum as one ofManchester United’s suppliers has extended thisapproach to cover environmental aspects of itsbusiness. For example, a FastTrack visit by anindependent Envirowise advisor highlighted theopportunity to completely eliminate plastic packagingand reduce cardboard packaging associated withdifferent products. Savings in packaging materialswere estimated as more than £9,300, with less wastefor customers to dispose of or recycle.

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Host company Halfords is the UK’s leadingretailer, on the basis of turnover, in each of the keyproduct markets in which it operates: carmaintenance, car enhancement and leisure, includingcycles and cycle accessories.

The company has more than 400 stores. Halfords’supply chain management team has successfullymentored 23 suppliers, providing encouragement,support and practical solutions to help reduce wasteand cost in the supply chain.


As a result of the support and advice fromEnvirowise, all members of staff are consciousof the cost of waste and the need to recyclewhenever they can. Simple things like lightsbeing turned off when not in use and greatercare in packing orders to reduce the number ofreturns are just some of the ways in which weare helping the environment.

Dominick Brophy, General Manager, Summit Accessories Ltd


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‘Fresh pair of eyes’ stimulatespackaging health check forSummit AccessoriesSummit Accessories Ltd specialises in theautomotive aftermarket, and produces replacementparts and car accessories for Halfords and otherretailers. As an established business with more than30 years’ trading, the company had little reason toquestion the efficiency of its day-to-day operations.With the benefit of a ‘fresh pair of eyes’, the Forumstimulated Summit Accessories to review its productpackaging. Ideas to re-use cardboard boxes andreduce the overall amount of disposable packagingpurchased saved the company initially £5,500/year.This was just the beginning. Now three years on, thecompany has completed a health check of itsproduct packaging with a view to reducingenvironmental impact and saving money. Productpackaging has been refined and re-usable boxes onlyare used for deliveries, saving around £25,000/year.The company is also working with supermarkets on‘retail ready packaging’ - saving time in productpacking for Summit Accessories and unpacking forthe supermarket, as the box used for transporting isalso used on the shelf, and is recyclable. The nextstep is to develop a returnable box.

championsEnvirowise Advice Line 0800 585794www.envirowise.gov.uk

The good ideas helped us to reconsiderareas of our business with a view to makingthem better.

Paul Phillips, Production Director, Autoglym

Autoglym buys in bulk to reducewasteHalfords supplier Autoglym is based in Hertfordshireand manufactures car polishes and related chemicalproducts. The nature of the business means thatmany different chemicals are delivered to thecompany for processing. An initial simple idea, topurchase more chemicals in bulk, has alreadyresulted in fewer waste intermediate bulk containers(IBCs) and drums, saving an estimated £30,000/year.

Savings have been immediately reinvested in much-needed, latest technology filling equipment, whichshould realise long-term environmental benefits byreducing product waste.

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Our in-house waste recycling initiatives givethe whole workforce a ‘feel-good factor’ that weare progressive in our drive to reduce wastegenerated from our manufacturing activities.Financially it also gives us a green saving fromlandfill and skip costs of £25,000/year plus £30,000/year in direct revenue from our recyclate.

Mike McCarthy, Patak’s Foods Ltd ’’

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2004 SHARING THE BENEFITS WITH HOSTS


In 2004, The Co-operative Groupjoined the Forum, now well established andbringing benefits not only to suppliers but alsohost organisations. The Group operates over4,500 trading outlets throughout the UK, includingfood stores, pharmacies, travel branches andfuneral homes, and introduced 36 suppliers toparticipate over a two-year period. The Group’sapproach acknowledged that there are physicallimits to the resources of the Earth, in terms ofboth generating materials and absorbing wastes,and that any business activity exceeding theselimits is, by definition, unsustainable in themedium to long term. Suppliers saved asubstantial amount through improved packaging,logistics and energy use, and The Co-operativeGroup also made simple changes at Head Officeto reduce paper, water and energy use in theoffice environment.

In July 2007, The Co-operative Group and UnitedCo-operatives amalgamated. The new Society,which will be known as The Co-operative, is theworld’s largest consumer co-operative with aturnover of more than £9 billion, 4.5 millionmembers and 87,500 employees.

From waste to resourcesEstablished in England in 1957, Co-operative Group supplierPatak’s has grown to become an internationally successfulbrand and a household name in the UK. It creates authenticIndian food including cooking sauces, curry pastes, chutneys,pickles, naan bread and pappadums. Patak’s is also servedin over 75% of Britain’s 8,000 Indian restaurants. Now part ofAssociated British Foods, Patak’s products are distributedinternationally to more than 40 countries including Canada,Japan, Australia, New Zealand, Europe and the UnitedStates.

After attending training workshops, staff at the company’s300-strong Leigh site began to look at alternative ways tohandle and dispose of waste. For example, some ingredientssuch as mangoes, limes and chillies were supplied in barrelswhich could not be returned for re-use and Patak’s was leftto dispose of them, paying recyclers £30,000/year. Patak’shas now gone into partnership with a recycler, who hassupplied a baling machine free of charge that is capable ofbaling 80 barrels together, and it also now receives paymentfor the baled barrels, saving £30,000/year on removal andgenerating an additional £8,500/year revenue.

Within the factory, waste streams are separated at source asthis makes waste disposal easier and generates a saleablecommodity in most cases. For example, the site currentlysaves over 400 tonnes of waste packaging from going tolandfill from in-house recycling.

2005 STEPPING STONE TO EXTEND THEPARTNERSHIP APPROACH

I do enthuse about what we’ve done. Ourbusiness turned around four years ago and it’smore than a coincidence that it was when wegot involved in the Forum. It’s been a majorstepping stone and encouraged us to take afresh look at our distribution operations and ourproduct design. We are now in an enviable win-win position with both our customers and oursuppliers, continuously developing newproducts and services with the environment attheir core.

Andrew Robinson, Managing Director, Rigby Taylor Ltd


As one of the first companies to signup when Manchester United invited itssuppliers to join the Forum two yearspreviously in 2003, Rigby Taylor soondiscovered the benefits of theapproach. The Forum helped tostimulate ideas and actions in allareas of the company, and in 2005Rigby Taylor cascaded out the Forumto companies in its own supply chain.Rigby Taylor invited four suppliers toget involved in the Forum, collectivelyidentifying savings of £70,600 throughthe improved use of raw materials,reduced waste to landfill and lowertransport costs.

Linemark and Rigby Taylor makean impact with innovative white-lining productThe impact of the Forum has continued to grow.Following a fledgling discussion during a packagingworkshop, Rigby Taylor and its paint manufacturer,Linemark UK, worked together to develop aninnovative line marking system. The new product is aready-to-use white marking paint which requires nopre-mixing, saving on time and water. The bag-in-the-box outer cardboard packaging can besegregated and recycled, whilst the liner inside has aretractable spout, allowing almost every drop to betransferred from the bag. The benefits are alsovaluable to Rigby Taylor’s customers. It is estimatedthat the new product could save line marking costsfor local authorities by 25-50%, compared withtraditional line marking practices.

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Workshops stimulate water andwaste reviewPB Kent & Co manufactures and packagesspecialist fertiliser products for the garden, amenityand agricultural markets. It employs 35 staff at itsmanufacturing facility in Immingham, north-eastLincolnshire.

As a supplier to Rigby Taylor, PB Kent & Co attendedworkshops on themed topics, including water andwaste. Ideas generated during discussions withdelegates cemented the company’s focus to reducewater charges and to use innovative ways to reducelandfill. The company began by reviewing historicalwater use and water invoices, and a discrepancy ledto the identification of a water leak on site. The leakwas fixed and annual charges reduced by£7,500/year, with an additional rebate of £13,500from the local water provider. Recycling of wastepackaging materials, including card, plastic, woodand polypropylene bags, reduced landfill waste by200 tonnes, saving £15,000/year.

Not only has waste been considerably reduced, butalso product sales have increased from around 5% to20% of the market share.

With over 18 years’ experience, Linemark UK Ltd is aspecialist in the manufacture of grass paint andmachinery. Work ranges from motor racing GrandsPrix to rugby internationals and football matches.

The workshops helped to draw focus toareas within our business that had potential forimprovement. This highlighted significant costbenefit initiatives that also have a real ongoingpositive impact on the environment.

Darrell Whitton, Operations Manager, PB Kent & Co’’‘‘

Being able to manufacture this uniqueproduct for Rigby Taylor has set us apart fromall our competitors. We are very proud atLinemark to make the end-users’ job easierand at the same time provide positiveenvironmental benefits.

Tony Holt, Director, Linemark UK Limited’’‘‘

2006 HIGH STREET PARTNERSHIPS

3663’s aim is to ensure an environmentallyaware supplier network; Envirowise’s reputationand support enable us to progress further withthis and help to boost supplier interest. At 3663,we recognise our responsibility to protect theenvironment and appreciate that suppliers canhave an important contribution to make. TheForum has shown an excellent track record inhelping to identify savings while reducingenvironmental impact throughout the supplychain.

Claire Mellor, Environmental Development Manager, 3663 First for Foodservice

From small beginnings and simple ideas,the Forum has helped us to look in more detailat our daily activities and to seek out allopportunities to reduce the unnecessary use ofresources, protect the environment - andcontrol our overhead costs.

Mark Edwards, Operations Risk Manager, Speedibake, a division of ABF Grain Products Ltd


3663 First for Foodservice is the UK’sleading foodservice wholesale distributor. 3663 iscommitted to continually improving the environmentalperformance of its activities and products through aprocess of pollution prevention and compliance withappropriate environmental legislation.

Meeting these goals requires active dialogue with allsupply chain partners and 3663 works with suppliersto continually improve environmental performanceand ensure they operate in a socially andenvironmentally responsible manner. Working inpartnership with participants in the Forum has helpedeight suppliers achieve continual improvement inperformance and cost-effectiveness, with potentialsavings of around £570,000.

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Training workshop helpsSpeedibake reduce the impact ofenergy price increasesSince opening in 1984, Speedibake has grown tobecome one of the leading producers of frozenbakery products in the UK with a range of over 600products, turnover of around £70m and 500 staff.

As a supplier to 3663, Speedibake attended atraining workshop on energy, which inspired theenvironment team to focus on low energy technologyand optimise energy tariffs to partially combat rapidlyinflating energy prices. The team of six identified 19separate initiatives, and an immediate start madequick savings. For example, replacing two cold storecondensers with more efficient technology reducedusage by £49,000/year and a simple shut-offprocedure ensured that one cold store avoided usingelectricity at peak tariff rates, with a value of

£8,435/year. The payback period oninvestment was 18 months.

The idea of getting retailers and theirsuppliers together in one room for any purposeother than negotiations, can be a challenge initself. Envirowise has helped us to do this - andencouraged us to develop a partnership withour suppliers to learn from one another.

Laurence Singer, Corporate Responsibility Manager, Home Retail Group plc

The Forum helped us with technicalguidance and skills training. Networking withother companies gave us fresh ideas on wherewe could focus our attention in the future.

Nigel Youd, Group Environmental Manager, Noble Foods Ltd


Home Retail Group is the UK’s leadinghome and general merchandise retailer, with sales ofover £5.8 billion in the last financial year. It sellsproducts under two distinctive and complementaryretail brands, Argos and Homebase, which arehousehold names in the UK.

Argos is a unique multi-channel retailer and is theUK’s leading seller of general merchandise.Homebase is the UK’s second-largest homeimprovement retailer.

Home Retail Group employs approximately 53,000people, has almost 1,000 stores throughout the UKand Republic of Ireland, and serves over 200 millioncustomers a year. Home Retail Group hassuccessfully mentored 17 suppliers, with savingsapproaching £250,000.

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Workshops help to generate ideasand future actionsNoble Foods Ltd is the largest free-range eggsupplier in the UK, with an annual turnover of £500million and a workforce of 2,500 people. As part ofthe Forum, expert speakers ran training workshopscovering topics such as waste minimisation,packaging and energy use. Attending the workshopshelped the company review its waste managementpractices and energy use. Recycling cardboard andplastic has saved 600 tonnes of solid waste to landfilland provides savings of up to £50,000/year, whichcan be used for further investment in environmentalimprovements. As a major user of energy, thecompany has focused on optimising energy use andinvesting in renewable technology to combat energyprice increases. Energy savings total £262,700 todate, through investments in a building managementsystem (BMS) to control heat and light and thecommitment to build wind turbines to provide greenenergy.


Our experience of the Forum has helped usto generate ideas and practices from beingmore environmentally aware.

David Harrison, Safety, Health, Environment and QualityManager, Henkel

Envirowise has supported 15 of our foodsuppliers to work with us to combat climatechange, reduce waste and safeguardresources as part of our five-year, 100-pointplan - Plan A.

Mike Barry, Head of CSR, M&S


Henkel meets zero waste tolandfill targetHenkel is the world’s market leader in adhesives,sealants and surface treatments for consumers,craftsmen and industrial applications. With brandnames such as Loctite, Unibond, Solvite and Pritt,Henkel products can be found all over the world. Asa supplier to Home Retail Group, Henkel attendedEnvirowise workshops as part of the Forum and wasvisited by an Envirowise advisor during a FastTrackvisit. One of the key opportunities from the visit wasto investigate how to recover waste product, which isa valuable commodity. The company is now workingwith a local supplier which recovers the materialsfrom over-produced stock for re-use or recycling. Allcardboard and polythene packaging is recycled. Theproduct, eg Solvite, is repackaged into a bulkcontainer for reprocessing and resale. This hasdiverted 100% of the product from landfill - theprevious practice used by the company.

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partnershipsM&S is committed to tackling some of the biggestchallenges facing its business and our world. InJanuary 2007, M&S launched its Plan A, a five-year,100-point eco-plan pledging to work with customersand suppliers to combat climate change, reducewaste, safeguard natural resources, trade ethicallyand build a healthier nation. The retail group has over500 stores located throughout the UK and, inaddition, 250 stores worldwide, operating in 30countries. The company’s top 15 suppliers signed upto participate in the Forum,generating savings in the regionof £390,000 through improvedresource efficiency.

The Forum has given me useful contacts,general help and advice.

Keith Manson, Projects Director, Avana Bakeries

Environmental issues play a big part inthe ethos of Princes and being part of theSupply Chain Partnership with M&S hashelped to continue the commitment and drivefor better environmental awareness andownership for the Company.

Steve White, Safety, Health and Environmental Manager,Princes Ltd, Chichester

Avana Bakeries FastTrackenvironmental improvementsAvana Bakeries is part of the Premier Foods Group.The Wern site at Newport, Gwent, produces over 40product lines of hot and cold desserts and bakedand decorated cakes for M&S. Building on initialinvestigations by the company into reducing wateruse and effluent, the site requested a FastTrack visitby an independent Envirowise advisor to provide afresh overview of the site operations and identifyfurther areas for potential environmentalimprovements. The visit highlighted ideas forimproved solid waste segregation, increasedrecycling of different waste streams and compactionof waste to reduce waste management costs.Savings were estimated to be around £11,500/year.

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M&S encourages Princes toreduce waste and safeguardresourcesPrinces is a £900 million-turnover food and drinkcompany, with a portfolio of leading brands andproducts that are bought by millions of people everyday. Princes also produces thousands of own labelfood and drink products for major retail and foodservice customers. As a leading food and drinkbusiness and supplier to M&S, Princes is continuouslyinnovating to drive growth and develop brands as wellas ensuring ethical and sustainable sourcing ofproducts. This is equally important to Princes’consumers and to its business partner M&S, and anintegral part of the latter’s Plan A to tackleenvironmental challenges.

Participating in the Forum spurred Princes toimplement a number of different environmentalimprovements at its largest manufacturing site inChichester. These included a review of product rawmaterials, with a view to consolidate them, the fittingof secondary traps in the processing areas to removesolids and improve wastewater quality, and installingwater saving devices to domestic facilities to reducewater costs. Together with an awareness campaign toencourage staff to switch off unnecessary lighting andequipment, savings were around £34,900.


COST SAVINGS


savings

Results are impressive and are encouraging for anyother organisations that are considering playing host.Since the project began, savings of over£12.45 million have been identified (see Table 1), withless than 10% requiring any capital investment at all.The average payback was within just two months.

Figure 1 Cost savings for the Forumhighlighting the benefits over five years

Table 1 Summary of cost benefits resulting from the Forum

INITIATIVE SAVINGS (£) CAPITAL COSTS (£) PAYBACK (MONTHS)

Raw materials use £3,540,992 £441,420 1-2

Water use and effluent £1,609,866 £389,880 2-3

Energy consumption £5,723,637 £229,036 Less than 1

Solid waste to landfill £1,577,478 £169,737 1-2

Total £12,451,973 £1,230,073

Environmental benefitsCost savings are an important measure of thesuccess of the partnership approach, but the widerbenefits have led to improved use of resourcesthrough:

BENEFIT

Reduced raw materials use

Improved process control

Reduced water use and effluent volume

Increased environmental awareness

Reduced energy consumption

Improved health and safety in the workplace

Reduced solid waste

Improved waste segregation

Lower costs

Improved recycling

Raw materials£3,540,992

Water use and effluent£1,609,866

Solid wasteto landfill

£1,577,478

Energy£5,723,637


The toolkit will guide you through the stages youneed to take to ensure you make the biggest impact.Each stage includes a video presentation, key tips,templates and exercises.

For your free copy of the Toolkit, contact theEnvirowise Advice Line on 0800 585794 or visit thewebsite at www.envirowise.gov.uk


This publication was prepared with assistance from Enviromentor Ltd

If you want to try out the benefits of asupply chain partnership for yourself,Envirowise has produced theSupply Chain Partnership Toolkitto help you. The toolkit is a set offour CDs containing everythingyou need to create, manage anddeliver an effective supply chainpartnership project that willsuccessfully reduce waste, unlockhidden profits and improveenvironmental performance for youand your suppliers.

Envirowise - sustainable practices, sustainable profits. Envirowise is a Government-fundedprogramme dedicated to putting the sustainable use of resources at the heart of businesspractice. It is managed by AEA Technology plc and Serco TTI. Envirowise is funded inEngland by Defra’s Business Resource Efficiency and Waste (BREW) Programme andsupported by BERR; the Scottish Government in Scotland; the Welsh AssemblyGovernment’s Materials Action Programme (MAP) in Wales; and Invest Northern Ireland inNorthern Ireland.

Harwell | Didcot | Oxfordshire | OX11 0QJ | E [email protected] www.envirowise.gov.uk

EN784 © Crown copyright. First printed March 2008. Printed on paper containing 80% recycled post-consumer fibre.This material may be freely reproduced in its original form except for sale or advertising purposes.

Envirowise offers a range of free services including:

• Free advice from Envirowise experts through the Envirowise Advice Line.

• A variety of publications that provide up-to-date information on resourceefficiency issues, methods and successes.

• Best practice seminars and practical workshops that offer an ideal way toexamine resource efficiency issues and discuss opportunities andmethodologies.

Documents

SHARING SUCCESS - enviromentor.co.uk Sharing... · Profiting from supply chain partnerships The enthusiasm of the participating suppliers was impressive and helped to make environmental