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1 © 2degrees Ltd.
Supply chain engagement service overview
1st September 2011
Simon Brown, Managing Director – 2degrees Enterprise Services
Email: simon.brown@2degreesnetwork.com
Tel: +44 7980 241816
2 © 2degrees Ltd.
We see an opportunity for major
organisations and their suppliers to
enhance their competitiveness using the
2degrees supplier engagement service.
This service provides a means for efficient
and effective communication between
multiple organisations to achieve a
common goal.
We see our clients being able to become
better leaders in their supply chains - better
able to serve their customers and grow
their business without environmental or
social constraints.
Our service supports our clients drive for
continuous business improvement,
strengthens their bond with suppliers and
enables more sustainable procurement
practices.
2degrees Enterprise Services
Clients include:
Vision for an engagement service
3 © 2degrees Ltd.
• The 2degrees Supply Chain Engagement Service supports large organizations in
achieving their goals for more efficient, lower cost, lower risk and more
sustainable supply chains
• Progress towards goals is achieved through the development, sharing and roll-out
of sustainability best practices, and by the solving of practical problems across
the supply chain
• 2degrees role is focused on the facilitation of the engagement between suppliers,
client teams and other stakeholders. We work with the supply chain community to
surface best practices and help people to apply them in their business.
• The service addresses the cost, efficiency and scalability challenges that large
organizations face in engaging their supply chains effectively
• We originally developed the service in partnership with Tesco, the world’s third
largest retailer, and are now running it across several global supply chains
What is the Supply Chain Engagement Service?
4 © 2degrees Ltd.
Agree with client on whom to
engage and build activity plan
Stakeholders (i.e. Suppliers)
recruited to client portal on
2degrees
They are engaged around agreed
targets for improvement in:
• Energy, Carbon, Logistics, Other
GHGs, Water, Waste, Renewable
Sourcing, Ethical standards, Health,
etc.
2degrees facilitates a four-step
continuous improvement activity
plan
How it works
1. Surface
2. Select
3. Deliver
4. Assess
Continuous Business Improvement
5 © 2degrees Ltd.
An engaged supply chain that is better able to:
1. Reduce cost/improve efficiency along the supply chain:
• Reduction in carbon emissions, energy use and intensity
• Improvements resource efficiency, and sources of supply
• Improvements in other sustainability performance targets
2. Support products and services that organisations can offer to customers:
• Products and services that are more energy and/or resource efficient
• Develop new, better offerings that are unconstrained by environmental limits
• Improved contract win rate through performance against customer sustainable procurement
requirements
3. Enhance sustainability performance of individual suppliers
• Applying best practices in the suppliers own operations and facilities
• Reducing the cost of goods/services procured
• Eliminating waste (energy & resource) in the suppliers own operations and facilities
Target outcomes for clients
7 © 2degrees Ltd.
Case Study
Client Challenge Actions Outcomes
The world’s 3rd largest
retailer by revenue
£62.54 Billion revenue
(February 2010)
4,811 Stores across 14
countries
472,000 Employees
Over 100,000 suppliers
worldwide
Business goal:
30% carbon reduction in
the supply chain
Objectives:
Collaborate frequently with
suppliers
Enable suppliers to share
best practice
Assist all suppliers
regardless of size, product
or location
Help suppliers find
solutions
Deal with a wide variety of
challenges quickly
Launched the Tesco
knowledge hub Oct 2010
An exclusive area for
Suppliers to collaborate
and share best practice
Structured activity plan
designed around suppliers
challenges
Access to wider 2degrees
community
Over 85% of target
suppliers are using the
knowledge hub
Over 70% have found
solutions to their
challenges by way of
2degrees (e.g. VO)
Plan to grow to 1,000+
members from 500+
companies in 2011 &
begin to run common
projects, standards and
tools
“We have chosen 2degrees to be our cornerstone partner to help us work more closely with our suppliers to drive CO2 out of our supply chain”
Louise Willington, Climate Change Manager, Tesco plc.
8 © 2degrees Ltd.
A self contained community within 2degrees
Over 400 members from 15 countries
Benefits:
• Connects suppliers across and within
categories 24/7/365
• Shares knowledge on new technology, and
new thinking
• Wide variety of ways to share knowledge –
discussions, case studies, webinars, site
visits
• Fosters a collaborative environment
• Allows Tesco to talk to many suppliers at
once
• Scalable solution, ready for wider rollout
The Tesco Knowledge Hub
9 © 2degrees Ltd.
Facilitating questions that
lead to carbon reduction:
• What have you done that
has worked?
• What hasn’t worked?
• What are the challenges?
• What do Tesco do that
helps?
• What do Tesco do that
hinders?
Unlocking progress on carbon reduction
‘Hotspots’
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‘SOFT’ BENCHMARKS OF PROGRESS
10 © 2degrees Ltd.
Actively Managed Service
Online & face to face
Inside the wider 2degrees
network
Range of communications tools,
WebEx, blogs, forums, etc
Tailored News feed
Networking tools
Wide range of information,
by recommendation, topic,
and popularity
11 © 2degrees Ltd.
The activity plan is
delivered by our
Community
Managers who: • Source and publish
relevant content
• Help set focus for
improvement and
benchmark
• Help to gain answers to
questions from
individual suppliers
• Arrange on-line
presentations from
subject matter experts
• Encourage the sharing
of knowledge between
suppliers
• Identify new areas of
opportunity for supply
chain sustainability
improvement
• Provide weekly
updates to your
supplier community
Pod cast interview
Facilitated discussion
Notes from facilitated site
visit
Recording of on line event,
presentation & audio
Video information
13 © 2degrees Ltd.
• Focus on uncoupling growth from environmental constraints
• 3yrs investment >£2m in team, technology & community
• Apply to join 2degrees at: www.2degreesnetwork.com
Background to 2degrees
Members Team
>16,000, >90 countries,
growing ~1000/m
>30 staff, offices in Oxford (UK)
& New York (USA)
15 © 2degrees Ltd.
"The 2degrees team worked closely with us to get the target suppliers on-
board quickly and efficiently. We look forward to continuing to work
through this platform to help our suppliers reduce their carbon emissions
and become more sustainable businesses." Helen Fleming, Climate Change Director, Tesco Plc
"We had the opportunity to share our views on carbon labelling with peer
suppliers in a 2degrees supplier engagement portal sponsored by one of
our major customers. It was a great way to promote what we've been
doing and to shape the agenda on this issue with a key customer and our
peers.“
Stephanie Demay, International Consumer Relations Manager, General Mills
Testimonials
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