Consulting Project: SBB Project

Project Title: Sustainable Purchasing Strategy for SBB

This project is assigned by SBB to a consulting team of 3 participants within the Diploma in Sustainable Business program. The project timeline includes the period of September 2011-June 2012.

Overall goals

  1. To develop and implement a sustainable purchasing strategy
  2. To foster sustainable procurement and production practices with our suppliers
  3. To take a leading role as an environmentally and socially responsible company

Project objectives

Objective 1: To develop and implement a sustainable purchasing strategy

  • Analysis of the complete Supply Chain from supplier over distributor to the end user and waste disposal based on quality, environmental, ecological and social responsibility aspects
  • Optimized clusters of products and services per supplier with minimized dependencies between supplier and buyer.
  • Ensure traceability of the complete supply chain. The range of supplies at SBB is huge. A pareto or ABC analysis has to be accomplished to select the product and service groups with the highest cost/benefit potentials and the biggest risks for sustainability damage or potential benefits.
  • Encourage competition and innovation through appropriate and communicated purchasing criteria as long term advantage for both parties.
  • Considering and meeting  consistently all relevant social and environmental criteria in close collaboration with suppliers
  • Implement Total Cost of Ownership (TCO) considerations in purchasing processes

Objective 2:  To foster sustainable procurement and production practices with SBB suppliers

  • Build long-term economically reasonable relationships between suppliers and buyers (no short-term profit maximization; no unlimited financial pressure on suppliers)
  • To reduce costs by evaluating price reduction potentials with suppliers and competitors.
  • Establish long term collaborations with selected partners to reduce cost in jointly managed activities, faire partnership, a two-way market-success ensuring long term existence of both parties’ supplier and buyer.

Objective 3:  To take a leading role as an environmentally and socially responsible company

  • Benefiting from image gains
  • Problems: lack of support by management and employees; lack of understanding and support by suppliers
  • Key changes: Understanding the necessity of a sustainable supplying strategy; achieving improvements for suppliers and producers;, negotiating sustainable delivery terms