Working together with our supply chain

Our performance

KPI  2016  2015 2016 performance against short-term target Short-term target (2016  Medium-term target (2020) Horizon ambition
Total spend covered by Group-wide agreements 71% 71% 75% 78%
80%

Number of suppliers and subcontractors participating in Supply Chain Sustainability School

2,048 2,130  1,400
1,700
2,000
  • Achieved or exceeded short-term target
  • Performance within 10% of short-term target 
  • Performance 10% or more worse than short-term target


2016 performance

Our Supply Chain Family, consisting of manufacturers and suppliers, grew from 300 registered suppliers in 2015 to 330 in 2016.  Around 80% of materials used by the Group can now be traced back to members of the Supply Chain Family, which guarantees that they are responsibly sourced.  71% (2015: 71%) of our total spend is covered by Group-wide agreements with the supply chain.

Lovell Partnerships held an event in 2016 at Cardiff City Stadium to provide information to local construction firms about a flagship new housing development. The session took place in the run up to a seven-year construction programme to provide 800 homes in The Mill, a new urban village in Canton, Cardiff, and attracted 140 subcontractors.

The Group remained on the board of the Supply Chain Sustainability School, which has grown considerably over the past year, and chaired the School’s infrastructure and materials groups.  The School helps our supply chain to develop their responsible business activities and assist us in achieving our Total Commitment targets.  In 2016, 608 companies in our supply chain undertook training at the School.

We subscribe to the Prompt Payment Code as we recognise that prompt payment can make a significant difference to our suppliers and subcontractors, boosting their cash flow and allowing them to invest in growth for the future.

The divisions operate preferred supplier schemes, giving feedback on performance and rewarding a high level of service.

2017 focus

In 2017 we are continuing to focus on engaging and collaborating with our supply chain.

On 21 February we held an 'Innovation and Sustainability Day, hosted by our procurement team.  We invited 200 of our employees who rely on suppliers and trade contractors and over 200 subcontractors, while 75 manufacturers exhibited innovative products and services.  The event provided project teams and suppliers with the chance to network and share knowledge and opportunities.

Risk/opportunities

Poor project delivery and use of non-sustainable materials

Impacts

  • Negative environmental impact of using materials that are not sustainable
  • Poor project delivery through not managing our supply chain and subcontractors properly
  • Association with poor labour practices

Mitigation

  • Establishing minimum standards through procurement policy
  • Risk assessment of potential high risk materials and services
  • Promotion of Supply Chain Sustainability School to suppliers

Opportunities

  • Driving improved labour sourcing and ethical procurement across supply chain with wider benefits in respect of materials sourcing

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