Q1. What are the key sustainability issues / trends which have an influence on the sourcing strategies of businesses today, and why is it important for companies to keep a tab on how these issues / trends develop?

Sourcing strategies help in sustainability and can result in larger impact both from environmental perspective as well as economies of scale. This also attains more importance in Tata projects context in our large value infrastructure projects (eg: blending of steel slag with ballast in Railway Track Laying Projects in recycling the slag and contributes in reduction of cost of ballast; Free Flow Concrete and Self-Healing Concrete help in reduction of rework and wastage). Exploring alternate material and alternate methodologies of constructions are key imperatives embarked upon by Tata Projects in its sustainability initiatives. TIF (Technology and Innovation Forum) constantly identifies such avenues and takes them forward.

Q2. The emerging discourse is for businesses to embed sustainability at each phase of the procurement process. How can companies do this effectively while evaluating, selecting and monitoring the performance of its suppliers?

While empanelling a new supplier, the Vendor Evaluation Questionnaire consists of a criteria - with weightage of 5% - on green concepts. The vendor scoring >/= 3.5 is recognised as green vendor and is offered preferential payment terms. Tata Projects will recognize 3 green vendors every year in its Annual Vendor Meet “SYNERGY”. As an improvement and to promote green awareness amongst vendors, Tata Projects now plans to monitor vendors score of < 3.5 against the green criteria and encourage them to move forward in adopting green concepts. In this direction Tata Projects will conduct awareness sessions with SMEs together with the recognized green vendors.

Q3. The agenda of sustainability in supply chains is a gradual one, at best, since it has to take into account the reservations of key suppliers of the company. How can companies effectively address these reservations, and weave this agenda into its supplier engagement platforms?

In most cases, the suppliers are recommended by the customer specific to meet the Project requirements leaving very little option for Tata Projects to work with its own vendors. In spite of this limitation, Tata Projects maps the green vendors (who are also TPL’s approved vendors) and engage with them for business. Further, TPL’s GCC and GPC contains and specifies usage of recyclable and biodegradable packing material when vendors deliver the material to our Project locations.

Q4. How can the interface between sustainability and supply chain teams within a company be made more effective, and aligned to the overall objectives of the business?

The special team headed by the COO with a nominated in-charge drives the sustainability initiatives identified by Tata Projects and monitors the results periodically. The KPIs include various initiatives in Project operations towards sustainable operations (Please refer attached sheet). These measures include KPIs related to SCM viz., volume of business done with green vendors; promotional activities carried out towards spreading awareness on green concepts with vendor community and % procurement done from Green suppliers etc.