Managing Supply Chain Impacts

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1 Managing Supply Chain Impacts Increasing shareholder, public and media scrutiny means that any irregular or irresponsible practices within an organisation's supply chain can permanently damage an organisation's reputation. With a growing demand for accountability, organisations are under increasing pressure to identify and report on their impacts. These impacts extend far beyond the reach of internal operations, stretching into often complex and diverse global supply chains. Organisations must constantly review changing and emerging standards to quickly establish and ensure that their operations and supplier's operations are compliant and not exposed. Without robust supply chain capabilities, organisations will struggle to manage and address these impacts. The challenge faced by many organisations is engaging with supply chains without investing considerable resources and without placing an unnecessary burden on suppliers. Introducing NQC NQC specialise in supplier engagement and are a leading provider of web based engagement systems. Our engagement systems are now being used by some of the largest UK Government and FTSE 350 organisations. These organisations are able to measure and report on supplier performance, provide supply chain assurance against potential risks and impacts and enable the development of wider social, economic, environmental and technological improvements. C Evidence and experience has taught us that commitment to supplier engagement demonstrates the desire for a long term mutually beneficial relationship. As a result, suppliers are more likely to share information about their policies and practices and invest in improvements to better meet organisational and societal needs for a secure and sustainable future. NQC stand out as a leader in web based supplier engagement solutions

2 Engagement Supplier engagement brings you and your suppliers together, enabling you to enter into meaningful dialogue and work together to achieve common goals and commitments. For engagement to be effective, it must address your business needs whilst offering mutual benefit to suppliers. At NQC, engagement means more than exchanging information or sharing policies. For us it is about having the right conversation with suppliers to achieve more. A Winning Formula We combine multi-award winning web based technology with expertise in supply chain management to offer a unique and innovative approach to supplier engagement. Our proprietary and proven approach is designed to integrate seamlessly into your business, providing you with a low touch way to engage with your suppliers. Secure Technology Our security accredited web based technology is highly scalable and accessible to the widest possible supplier base. You can engage with large and complex supply chains and information can confidently be shared between you and your suppliers. Recognised Standards Our researchers consult widely to ensure that you engage in dialogue which considers recognised and accepted standards and current trends. This removes the need for you to review a constantly changing agenda. Intelligent Software The system is designed around a heuristic and intelligent software engine that only requires suppliers to share data that is relevant, significantly reducing their burden. Proactive Support Dedicated support services focus on delivering reliable results to maximise the benefits of your supplier engagement. Our trained staff manage supplier queries to minimise disruption to your internal resources. C NQC blends affordable and innovative technology with the highest possible quality of service

3 Assurance Supply chain assurance is a direct result of engagement and is gained when your suppliers disclose information and commit to corrective action to address issues that might otherwise have a negative impact on your business. Assurance must be relative to your business and must provide accurate information on supplier performance enabling you to quickly and easily make the right business decisions. NQC provide you with assurance, not simply through desk based research, but through active and ongoing engagement. Benchmarking We rate supply chain performance, benchmarking suppliers against their peers, providing them with actionable recommendations designed to reduce impacts and deliver improved outcomes. RAG Scorecards Results are presented back to you via simple red, amber, green scorecards and risk profiles so that you can quickly and easily identify risk and monitor non compliance. Progressive Disclosure Our online and dynamic supplier self assessment engine enables suppliers to disclose information relevant to their operations, your expectations and relative to the level of risk they pose to you. Monitoring & Analysis Tools We provide you with the right tools to comprehensively analyse the information so that you can report on impacts, compliance and key performance indicators. The system provides the visibility we need to monitor and report on supply chain performance and compliance

4 Development Supplier engagement is the catalyst for sustainable development where improved relationships drive more responsible business practices that deliver benefit to your business and wider society. Effective sustainable development must consider the maturity of each supplier, the impacts they have on your business and the wider effects your supply chain has on society. At NQC, we believe that development should not be limited to rating a supplier's performance, it requires active engagement and ongoing encouragement across the supply chain. Raising Awareness We work with leading global organisations to ensure that our assessments raise supplier awareness on issues that are both relevant and important and enable suppliers to share innovation and best practice. Automated Recommendations An intelligent software engine automatically generates reports for each individual supplier and includes appropriately selected recommendations which map out an actionable process of improvement enabling each supplier to make a step change. Real Time Alerts Our system generates real time alerts informing you of any changes to a supplier's performance keeping you ahead of the information. Data Sharing Secure technology provides a platform through which you can store data and confidently share information with industry partners collaborating to leverage greater influence across common supply chains and common goals. The approach is firmly adopted as the basis for future developments to ensure that issues are not forgotten but moved forward in a structured and logical way

5 nqc.com/caeser nqc.com/caeser Supply Chain Sustainable Development Truly innovative solutions will progress all three agendas of sustainability as one Introducing CAESER CAESER is a web-based engagement system enabling organisations to effectively engage with suppliers, assure their supply chains and deliver lasting sustainable developments for the benefit of wider society. The system covers the full range of sustainability considerations including environmental, social and economic policy areas as well as industry specific standards and codes of practice. To ensure we promote acceptable standards and current trends we incorporate the work of leading UK Government Departments, international organisations and initiatives. These include the UN Global Compact, the International Labour Organisation and the Global Reporting Initiative. Transparency Our engagement system enables organisations to access n-tier supply chain data from prime contractors and multiple sub-contractor tiers. This supports the growing demand for transparency of supply chain data. CAESER Key Facts Covers all UK Government priorities & Greening Government Commitments 100+ Public & Private Sector Clients 25,000+ supplier data returns Civil Service Sustainability Award CAESER Key Topics Environmental Social Economic Reducing GHG Emissions Reducing Waste Generated Reducing Water Use Sustainable Resource Consumption Working Conditions & Ethical Trade Bribery & Anti-Corruption Advancing Equality & Social Mobility Ensuring Health & Safety Developing Workforce Skills Delivering Community Benefits Developing SMEs

6 nqc.com/caeser nqc.com/caeser We looked at other products on the market. We chose CAESER because is enables us to report on issues that are really important to us Risk Factors Using internationally recognised classifications, high risk suppliers are identified according to the locations and industry sectors within which they operate. Suppliers operating in countries outside the OECD are assessed against a more rigorous framework, ensuring that all potential risks are identified and minimised. The FTSE4Good Index and UNSPSC Codes are also used to identify and monitor risk within the supply chain. Analysis CAESER provides organisations with a web based system for analysing supply chain performance, risk and compliance against a wide range of sustainability topics. Easy to use scorecards and analytical tools offer a simple and comprehensive way to analyse key performance indicators, sustainability impacts and risks. Scorecards at a Glance Quickly view how many suppliers have disclosed data in any engagement campaign Easy to access information on a wide range of sustainability topics Results rate suppliers against key themes within each topic area Visibility of supplier performance across business functions Quickly identify the distribution of supplier scores across an engagement campaign or topic area Identify top and bottom performing suppliers

7 nqc.com/hadrian nqc.com/caeser Supply Chain Information Assurance Following several high profile incidents of data loss in recent years, the UK Government has prioritised the management of risks posed within its supply chain as a central element of its IA practices. HADRIAN is fully compliant with and incorporates CESG's standard assessment framework assessing suppliers in line with Her Majesty's Government Security Policy Framework (SPF). One of the challenges faced by organisations is understanding the context and maturity of information security within the supply chain and enabling security teams to work with procurement and commercial colleagues to engage with suppliers on information assurance. Information Risk Returns Introducing HADRIAN HADRIAN is an accredited web-based supply chain information assurance system developed in 2007 in partnership with the Home Office enabling organisations to identify and report on potential risks to data held within the supply chain. Government organisations and their key suppliers are encouraged to adopt a standard mechanism for information assurance. As such CESG have produced a Supplier Information Assurance Tool (SIAT) and Assessment Framework that has been closely based on the HADRIAN methodology. Through use of HADRIAN, organisations are engaging with record numbers of suppliers. The analysis from the HADRIAN returns is being used to inform annual Information Risk Returns to the Cabinet Office to provide evidence of risk management processes. The data collated through HADRIAN is used to inform our annual Information Risk Return to the Cabinet Office HADRIAN Key Topic Areas General IRM & Policy Security Policy Framework Compliancy Data Handling & IR Policies Data Protection Act Compliancy Risk Assessments & Off Shoring Personnel & Physical Security Information Risk Awareness Training Physical Security Measures Access Controls to Personal Information IT, IA & IM Procedures w: nqc.com t: +44(0) e: [email protected] Risk & Accreditation Business Impact Levels RMADS & IA Standards Compliance Regimes Sub-Contractor Assurance 2012 NQC Ltd. All Rights Reserved.

8 nqc.com/hadrian nqc.com/caeser IA Community Organisations using HADRIAN benefit from membership of pan government user groups. Inclusion and involvement in such groups will ensure that you remain at the forefront of HMG supply chain information assurance practices. With audit and compliance functionality now incorporated within HADRIAN, you also benefit from cross government data sharing initiatives including access to shared supplier audit and compliance data. HADRIAN provides a secure platform for us to collaborate and share information with colleagues across Government HADRIAN Key Facts Jointly developed with the Home Office In use across Government since % CESG SIAT compliant IL3 Accredited 97% supplier completion rates Now with Audit & Compliance workflow HADRIAN at a Glance Quickly view how many suppliers have disclosed data in any engagement campaign Quickly identify the distribution of supplier results Visibility of supplier performance against key security topic areas Easily view top and bottom performing suppliers w: nqc.com t: +44(0) e: [email protected] 2012 NQC Ltd. All Rights Reserved.