Capacity Building

Promoting improved performance, quality and responsible management via the value chain can meet resistance by suppliers. This relates to capacity, cost implications, sharing of margins and failure to see the collective gain or business case. Unchaining Value seeks to promote approaches in which buyers support their suppliers in building capacity to capture win-win solutions. Capacity building can take many forms, from collaborative product design, onsite evaluation and advice to joint training of employees, supplier dialogue forums, planning sessions with downstream business partners and communications enabling consumers to support re-use and recycling efforts.

Many companies are experimenting with new ways to engage suppliers, including training and targeted communications. One car manufacturer developed a process and tools to provide details on high risk substances that could be contained in materials and have an ecological impact over the entire product life cycle. An aircraft manufacturer convenes regular technical exchange forums with suppliers to exchange know-how and discuss use of environmental tools such as life-cycle assessment. A furniture manufacturer hosts conferences for its employees and all its suppliers. A manufacturer from the information and communications technology sector shares production information online with its 1st tier suppliers and has supplier experts onsite to examine product defects jointly with its own engineers. A food and beverages company works with small scale farmers in Africa to provide training and support the introduction of organic farming practices.

Working collaboratively with customers up and downstream can lead to better policies that make business sense and yield greater environmental benefit. Studies have shown that the degree of collaboration directly improves the chance of success.

 

“We sincerely invite your participation to help us shape the ambitions, identify the best practices, and stimulate the partnerships to help raise performance across global value chains.”
Achim Steiner, Executive Director, UNEP