New challenges

The goal of having a supply chain with zero reputational risk means that the Sofidel Group has to continually monitor and stimulate sustainability all along its supply chain.

Analysis of the current supplier portfolio from a sustainability viewpoint clearly indicates the new challenge ahead for the Group: encouraging the transformation in a sustainable direction of the small and medium sized enterprises (turnover of less than €20 m) belonging to the Group’s network of suppliers.

This transformation is achieved through the implementation of an online training service and an online help desk to support these companies with their improvement plans and in their adaptation to meet Sofidel standards. In particular, comparison with 2017 data indicates that this transformation has started in the sector of medium sized companies (turnover € 5 m - 20 m), while the change of pace expected within small companies (turnover < € 5 m) has so far failed to materialise. The Group will therefore focus its attention on this type of company to support their transformation and help reduce the gap that separates them from other companies within the Group’s network of suppliers.

The SME challenge – 2018

The Sofidel Group intends to launch a training campaign in 2019 aimed at top-level suppliers on the TenP platform: the tool chosen to improve their performance is the SAP SuccessFactors platform through specific e-learning modules.

Stimulating sustainability throughout the supply chain means extending pre-qualification on the TenP platform to second-tier suppliers. The complexity of the market is a critical factor that has not helped to achieve this objective. However, the Sofidel Group intends to pursue the challenge of a qualified second-tier supply chain.

The goal that the Sofidel Group intends to pursue in 2019 is to make the Ariba platform the only tool for monitoring supplier performance, including in terms of sustainability.

The supplier onboarding phase, after the platform’s physiological running-in, lasted six months in 2018 and occupied the second half of the year: 443 suppliers successfully completed the integrated prequalification process on the Ariba platform in this period.

The goal for 2019 is to prequalify suppliers on the Ariba platform who have developed a turnover with the Sofidel Group of more than € 10,000 in the two-year period 2017-2018 and who are included in the tool’s scope of application.

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