Tuesday, April 17, 2012

Procter & Gamble Shares Its Supplier Scorecard Tool for Free. Realizes Impressive Results

P&G recently announced the free availability of its supplier scorecard tool. P&G has saved over $1B in operational savings in its own operations through reductions in energy and waste and is encouraging its suppliers to do the same.  

The scorecard tracks energy, waste, carbon emissions, and other factors and provides a numerical score.  PG recognized 17 suppliers that received the highest possible score (congrats to those suppliers).  The excel-based supplier scorecard is available here.   

Some notable findings: The greatest improvements carbon footprint were made by logistical and chemical suppliers. Half of the highest ratings came from European suppliers.   

Kudos to Larry Loftus, Director of Purchases Capability & Strategy, and the entire P&G team for sharing the tools and findings for this impressive program.

We continue to view supplier scorecard programs (which are also finding themselves in RFPs as well) as critical efforts to promote energy savings and sustainability.  Despite declines in carbon regulation, consumer interest, and investment focus, companies are proving they can drive a leaner and greener supply chain with increased supplier accountability.   

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