Unit 6 Responsible Tourism Supply Chains

Unit outlineObjectives By the end of the unit participants will be able to: the supply chain continuous improvement Topics supply chains development and action planning suppliers to meet

UNIT 6 RESPONSIBLE TOURISM SUPPLY CHAINS

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Unit outline

Objectives

By the end of the unit participants will be able to:

the supply chain

continuous improvement

Topics

supply chains

development and action planning

suppliers to meet sustainability targets

performance

Topics

supply chains

development and action planning

suppliers to meet sustainability targets

performance

TOPIC 1 INTRODUCTION TO

Responsible TOURISM supply chains

UNIT 6 RESPONSIBLE TOURISM SUPPLY CHAINS

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What is a supply chain?

from supplier to customer

components being transformed into a finished

product

tourism goods and services

supply chain is the holiday

Picture sources: vov.vn/Uploaded/VietHoa/2012_11_21/Bieu%20dien%20van%20nghe.jpg

http://sinhcafe.com/photo_north/Maichau/maichau_hoabinh_trekking_adventuretoursdotvn.jpg

http:// www.schoolanduniversity.com/images/page_uploads/Food-and-beverage-Management.jpg http://upload.wikimedia.org/wikipedia/commons/9/97/Premier_Executive_Transport_Services_Boeing_737-700_KvW.jpg

The key actors in tourism supply chains

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The tourism sector supply chain

Two compelling reasons why we need sustainable

supply chains in tourism

Im pro ved pr ofil

e / b ran d

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Im pro ved m ark

et a cce ss

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Inc rea sed op era tion

al e fec tive ness

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Inc rea sed su sta ina bili ty

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Some other good reasons to develop a sustainable supply chain

Some common sustainability issues in tourism supply chains

ECONOMIC PERFORMANCE ISSUES

Employee wages and benefits

Local purchasing

Revenue leakage

Linkages with local suppliers and subcontractors

Corporate responsibility-related payments

ECONOMIC PERFORMANCE ISSUES

Employee wages and benefits

Local purchasing

Revenue leakage

Linkages with local suppliers and subcontractors

Corporate responsibility-related payments

SOCIO-CULTURAL PERFORMANCE ISSUES General

Equal opportunities and non-discrimination Human rights (including combatting sexual exploitation of children)

Workplace

Workplace conditions Labour relations (fair wages, job security, working hours etc) Health and safety

Training and education Children in the workplace

Suppliers and subcontractors

Labour relations and human rights practices Contracting with small and micro-enterprises Respect for rights of ethnic and minorities and of local communities

Community

Traditional rights and freedoms Local consultation and participatory decision-making Contribution to community development Economic linkages with local communities

SOCIO-CULTURAL PERFORMANCE ISSUES General

Equal opportunities and non-discrimination Human rights (including combatting sexual exploitation of children)

Workplace

Workplace conditions Labour relations (fair wages, job security, working hours etc) Health and safety

Training and education Children in the workplace

Suppliers and subcontractors

Labour relations and human rights practices Contracting with small and micro-enterprises Respect for rights of ethnic and minorities and of local communities

Community

Traditional rights and freedoms Local consultation and participatory decision-making Contribution to community development Economic linkages with local communities

ENVIRONMENTAL PERFORMANCE ISSUES

Air, water and land pollution

Toxicity of materials and products used

Purchasing guidelines

Built environment (including protection of architectural, historical and archaeological heritage)

Environmental management system

ENVIRONMENTAL PERFORMANCE ISSUES

Air, water and land pollution

Toxicity of materials and products used

Purchasing guidelines

Built environment (including protection of architectural, historical and archaeological heritage)

Environmental management system

93% of your supply chain is invisible –

and why this matters to you!

happening in them

and litigation issues and lawsuits for false claims relating to human and environmental

issues

The function of making tourism supply chains more sustainable

company

combined with b2b support to create

positive change

achieve positive financial and

sustainability performance

responsible tourism

SUSTAINABLE TOURISM

Example: Putting responsibility into a component of a tour operator’s supply chain

Tour operator

• Uses local destination guides

• Employs local staf

• Recycles

• Informs guests of sustainability issues

• …

Restaurant

• Employs local staf

• Sources sustainable food

• Implements Fair Trade

• Supports local sustainability projects

• Pays fair salaries

• …

Suppliers

• Grow food organically

• Do not sell endangered animals

• Have good working conditions

• …

Example of simple restaurant supply chain

Picture sources: http://www.hoianworldheritage.org.vn/uploads/news/rautraque.gif; http:// www.vinacorp.vn/Content/ckfinder/userfiles/images/bia(1).jpg; http://images.vietpress.vn/Images/Uploaded/Share/2013/09/23/93.jpg; http://www.vinachem.com.vn/TCTYHC/GifAdv/Ninh_binh/san_pham.gif; http://newworldvn.vn/hinh-anh/images/the gioi-moi/ao-ghe-nha-hang-khach-san.jpg; http://www.stevina.vn/uploadfiles/product/C%C3%A2y%20gi%E1%BB%91ng%202.JPG; http://dantri4.vcmedia.vn/2togCcWP25hx4bn5VbuB/Image/2013/11/anh-minh-hoa-cdac7.jpg; http://www.dunghangviet.vn/uploads/content/2012/04/05/thanh-loc-rau-qua-truoc-khi-xuat-khau-0386.jpg; http://eventsnpromotions.com/wp-content/uploads/2012/12/photodune-1735309-waiter-with-champagne-xs.jpg; http://dantri21.vcmedia.vn/Ic3EyFHpPWFvMJOJFocc/Image/2013/03/Rau-cu-qua-

Processing factory

Processing factory

TOPIC 2 SUSTAINABLE supply chain

policy development AND action planning

UNIT 6 RESPONSIBLE TOURISM SUPPLY CHAINS

The importance of having a sustainable supply chain policy in tourism

The benefits of having sustainable supply chain policy in tourism

TOPIC 2 TOPIC 3 TOPIC 4

The key steps to developing a sustainable supply chain

Conducting a sustainable supply chain

baseline study

What is it?

The process of researching the current level of

sustainability of suppliers with the goal of identifying

sustainability gaps and developing sustainability targets

for improved performance

Benefits

 Helps find sustainability gaps

 Determines the extent and type of current behaviour/practices in sustainability

 Determines attitudes towards sustainability

 Determines current indicator levels (before intervention)

 Assists establish and prioritise sustainability policy areas/

objectives

 Provides a means to set realistic sustainability targets and measure progress

Benefits

 Helps find sustainability gaps

 Determines the extent and type of current behaviour/practices in sustainability

 Determines attitudes towards sustainability

 Determines current indicator levels (before intervention)

 Assists establish and prioritise sustainability policy areas/

objectives

 Provides a means to set realistic sustainability targets and measure progress

The key steps in implementing a baseline study

A Building an effective management team

internal departments and suppliers

good knowledge of key operational areas and

experience or understanding of sustainable tourism

for overall responsibility / ownership in developing

and managing the policy

Role of key departments in sustainable supply chain policy development

B Developing a baseline assessment methodology and approach

Written questionnaire

Supplier documents & data

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C Establishing sustainability criteria

Examples of economic sustainability assessment criteria for suppliers

wages

avoid revenue leakages from local economy

of local products and services

to producers

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Supplier economic sustainability assessment criteria

Others?

Examples of environmental sustainability assessment criteria for suppliers

reduce waste

recycle products

visitors and staff on importance of natural environment and sustainability issues

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Supplier environmental sustainability assessment criteria

Others?

Examples of social sustainability assessment criteria for suppliers

workers

safety guidelines

workplace training programme

conduct to guests

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Supplier social sustainability assessment criteria

Others?

Using Green Lotus criteria to create a supplier sustainability checklist

SUSTAINABILITY CRITERIA EXISTS IMPLEMENTATION LEVEL

B Maximise socio-economic benefits for local society

B2.1 Availability of policies on recruiting local people, people from remote regions and less developed economic regions

C Minimization of adverse impacts on cultural and natural heritage

C2.1 Expression of local culture and traditions in the tourist accommodation establishment’s architecture, activities and services it provides

D Implementing baseline study, reviewing and evaluating results

1. Implement the baseline study according to

plan and evaluation criteria

2. Analyse results to understand:

– Areas where suppliers are performing sustainably

– Areas where improvements can be made

– Which companies show most interest in improving sustainable

– Level of companies’ capacity to improve sustainability

– Opportunities to improve sustainability performance in companies

3. Prioritise suppliers to work with on achieving greater sustainability

Developing a responsible supply chain policy and procedures

• Sustainability standards / criteria for selecting new suppliers

• Sustainability performance standards for existing suppliers to improve

sustainability

• Promotional opportunities and incentives

• Instructions for the monitoring, reviewing and reporting on progress

made on improving sustainability in the supply chain

Effective policies and procedures…

Example of responsible supply chain policy statement

A1 Tours recognises that our social, economic and environmental impacts reside as much in our supply chain as in our own activities In our supply chain A1 Tours will ensure that our suppliers are:

products

A1 Tours

Responsible Supply Chain Policy Statement

Example of responsible supply chain procedures

In order to develop a sustainable supply chain, A1 Tours will:

towards performance targets

A1 Tours

Responsible Supply Chain Procedures

Other provisions that can support a sustainable supply chain policy

COMPANY PROCUREMENT POLICY

• Internal policy specific to how company staf contract suppliers (“services”)

• Can also include purchase of “goods”

• Can include sustainability selection criteria for procurement of goods and

services as a part of other broader requirements

COMPANY PROCUREMENT POLICY

• Internal policy specific to how company staf contract suppliers (“services”)

• Can also include purchase of “goods”

• Can include sustainability selection criteria for procurement of goods and

services as a part of other broader requirements

SUPPLIER (“VENDOR”) CODE OF CONDUCT

• Specific for contracted suppliers

• Should set out social, economic and environmental expectations of suppliers

• Typically voluntary

SUPPLIER (“VENDOR”) CODE OF CONDUCT

• Specific for contracted suppliers

• Should set out social, economic and environmental expectations of suppliers

The InterContinental Hotel Group’s

vendor code of conduct

Setting sustainability standards and targets

for the supply chain

• Standards provide specific requirements for the achievement of a desired

action

• Targets are based on the standards and enable benchmarking and the

measurement of success

• Standards and targets help identify where improvements need to be made

• In a sustainable supply chain standards and targets should be set based

upon the 3 pillars of sustainable tourism (economic, environmental and

social sustainability) and address the key sustainability issues (identified in

Topic 1)

General principles of good sustainability standards and targets

performance-based, process-performance-based, or both

Measurable, Achievable, Realistic and Time-specific)

General principles of good sustainability standards and targets

performance-based, process-performance-based, or both

Measurable, Achievable, Realistic and Time-specific)

Broader supply chain targets vs

Individual supplier targets

Individual supplier standards &

The overall number or percentage of

suppliers that are to meet the given

standards in a period of time

Supplier F Supplier E

HOTEL, TOUR OPERATOR, RESTAURANT ETC

SUPPLY CHAIN

Individual supplier standards &

targets

The level of improvement for individual suppliers in key areas

Example of supplier target compared to a supply chain target

YEAR 1

50% of all suppliers have a formal employment contracts and position

descriptions for all their staf

Influences on the setting and achievement of sustainability targets

INFLUENCES AFFECTING SETTING & ACHIEVEMENT

OF TARGETS

Examples of broad supply chain sustainability standards and targets

SUSTAINABILITY STANDARD (CRITERIA) SHORT TERM (1 YEAR) MEDIUM TERM (3 YEARS) LONG TERM (5 YEARS)

ECON

OMIC

Suppliers implement strategies to recycle products

SOCIA

L

WHOLE SUPPLY CHAIN TARGET

Sustainable supply chain action planning

suppliers to meet sustainability standards and targets

The TOI’s tips for effective sustainable supply chain action planning

Example of responsible supply chain action plan

Environmental Action / Initiative Responsibility Start date Finish date Status/ Date achieved

Develop a supplier code of conduct and procurement policy to support the sustainable supply

chain policy

…

 In progress/achieved  In progress / risk of not being achieved  Not achieved

Contracting or amending supplier contracts

• Cannot fully achieve a sustainable supply chain without including sustainability issues into contracts and altering procurement practices

• Good sustainable supplier contracts:

– Are gradually introduced after a period of voluntary improvement

– Clearly highlight the importance of sustainability to the supplier

– Establish minimum performance standards and optional criteria

– Are supported by performance checks

Key steps in developing a sustainable contracting system

TOPIC 3 Raising awareness and supporting suppliers to meet sustainability targets

UNIT 6 RESPONSIBLE TOURISM SUPPLY CHAINS

The importance of awareness and support in developing sustainable supply chains

Developing awareness raising messages on sustainability

Communicating messages about broad sustainability issues

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Awareness raising channels relevant to developing a sustainable tourism supply

chain

Meetings and workshops

Gather relevant suppliers together to communicate

about the sustainability supply chain programme and

new or amended policies.

Newsletters, brochures & flyers

Inform suppliers and others about the new or amended policy through your organisation’s print promotional material such as newsletters, flyers and brochures It’s also good for your customers to read.

Website

Create a section on sustainability in the company website

to communicate responsible tourism policies and actions

Great for suppliers and customers.

Email

Deliver information about the sustainability program directly to the mailbox of the supplier Coming from senior management can add a level of authority Quick and direct.

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Principles of effective awareness messages

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