1. UNIT 6. RESPONSIBLE TOURISM SUPPLY CHAINS
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2. Unit outline
Objectives
By the end of the unit participants will be able to:
• Understand the mechanics of supply chains and the
importance of building sustainability in the supply
chain
• Develop a sustainable supply chain policy and action
plan
• Implement a supply chain sustainability assessment
• Identify strategies to support suppliers to meet
supply chain sustainability goals
• Understand how to monitor the sustainability
performance of the supply chain and support
continuous improvement
Topics
1. Introduction to
responsible tourism
supply chains
2. Sustainable supply
chain policy
development and
action planning
3. Raising awareness and
supporting suppliers to
meet sustainability
targets
4. Monitoring and
evaluate sustainability
performance

3. TOPIC 1. INTRODUCTION TO
RESPONSIBLE TOURISM SUPPLY CHAINS
UNIT 6. RESPONSIBLE TOURISM SUPPLY CHAINS
Picture source:
http://www.geograph.org.uk/photo/1520478

4. What is a supply chain?
• The system of moving of a
product or service from supplier
to customer
• Results in natural resources, raw
materials, and components
being transformed into a finished
product
• Tourism supply chains involve
core and ancillary tourism goods
and services
• The final product purchased in a
general tourism 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
http://www.relaxitsdone.co.nz/_media/images/257-luxury-accommodation-in-queenstown-at-45-south-luxurious-master-bedroom.jpg

5. © 2003 Richard Tapper, Environment Business & Development Group
The key actors in tourism supply chains

6. Picture source:
http://piboonrungroj.files.wordpress.com/2011/07/slide03.jpg
The tourism sector supply chain

7. Two compelling reasons why we need sustainable
supply chains in tourism
Consumers
expect it You are eroding
your core product

8. Some other good reasons to develop a
sustainable supply chain
• Improved profile / brand
• Improved market access
• Increased operational effectiveness
• Increased sustainability

9. 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
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
Energy use
Water use
Waste management
Wastewater management
Contributions to biodiversity and nature conservation
Chemical use
Emissions (CO2, ozone depleting substances)
Land conversion
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
Source: Tour Operators’ Initiative for Sustainable Development (TOI) 2004, Supply Chain Engagement for Tour Operators: Three Steps Toward Sustainability, TOI, France

10. 93% of your supply chain is invisible –
and why this matters to you!
• Most supply chains today are so complex that
companies don’t know exactly what’s happening in
them
• Poor practices in the supply chain can result in
serious risk and reputation issues, legislation and
litigation issues and lawsuits for false claims relating
to human and environmental issues
• The impacts of poor practices by others can and will
eventually affect you
Source: Rowe A. 2013, ‘93% of Your Supply Chain Is “Invisible”’, Network for Business Sustainability, Available [online]:
http://nbs.net/knowledge/93-of-your-supply-chain-is-invisible/, Accessed: 09/02/2014

11. The function of making tourism supply chains
more sustainable
• Recognises sustainability
goes beyond the company
• Uses the power of policies
and contracts combined
with b2b support to create
positive change
• Requires working with
suppliers to achieve positive
financial and sustainability
performance
• Is grounded in the principles
of responsible tourism
Healthy
communities
Natural
environment
Economic
vitality
SUSTAINABLE
TOURISM

12. Example: Putting responsibility into a
component of a tour operator’s supply chain
TOUROPERATOR
Hotel
Restaurant
Dairy suppliers
Fruit & vegetable
suppliers
Canned goods suppliers
Others
Attractions
Others
Tour operator
• Uses local destination guides
• Employs local staff
• Recycles
• Informs guests of sustainability
issues
• …
Restaurant
• Employs local staff
• 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
• …

13. 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-luoc634814061593253822-6bfaf.jpg; http://www.vanderree-
transport.nl/Afbeeldingen/Wallpapers/ Van%20der%20Ree%20Transport%20(1).jpg; http://images.theage.com.au/2012/10/22/3733553/aw-Machi-20Japanese-20Resturant_20121022110825341796-360x0.jpg
Fruit &
vegetables
ingredients
Meat
ingredients
Table
linen
Beverages
Restaurant
Dairy
farm
Market Freight Fruit &
veg farm
Seeds
Fertiliser,
pesticides, etc
Freight ButcherDeli or
market
Seeds
Fertiliser,
pesticides, etc
Freight Cotton
farm
Linen
store
Processing
factory
Processing
factory
Fertiliser,feed, etc
Retailers, Distributors,
Manufacturers, Producers
RESTAURANT / CONSUMER RETAILER DISTRIBUTOR, MANUFACTURER, PRODUCER
Direct suppliers Indirect suppliers

14. TOPIC 2. SUSTAINABLE SUPPLY CHAIN
POLICY DEVELOPMENT AND ACTION PLANNING
UNIT 6. RESPONSIBLE TOURISM SUPPLY CHAINS

15. The importance of having a sustainable supply
chain policy in tourism
SUSTAINABLE
SUPPLY
CHAIN
POLICY
Defines company
sustainability position
• Establishes the goals /
targets for supply chain
and supplier sustainability
Prioritises issues
• Identifies the specific areas
of sustainability action that
are most important
Ensures correct
action
• Combined with procedures
policies make sure
sustainability actions are
effective and do not erode
sustainability goals
Defines training
requirements
• They help identify skill and
technology gaps and areas
in which capacity building
in sustainability topics can
be implemented

16. The benefits of having sustainable supply chain
policy in tourism
• Helps defend a company from legal disputes

• Demonstrates company commitment to sustainability

• Promotes support of suppliers to achieve sustainability
objectives
• Create greater stability and consistency in supplier
sustainability actions resulting in the faster achievement of
sustainability objectives

17. TOPIC 2 TOPIC 3 TOPIC 4
The key steps to developing a sustainable
supply chain
Understand where
you are
Conduct a baseline
study to understand the
sustainability of your
existing supply chain
Decide where you
want to be
Develop a sustainable
supply chain policy,
standards, targets and
action plan
Help your suppliers
get there
Raise awareness, build
capacity and offer
rewards to help your
suppliers meet the
sustainability goals
Monitor
performance
and improve
Monitor, evaluate and
improve performance of
suppliers in meeting
sustainability targets

18. 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

19. The key steps in implementing a baseline study
A. Build a
management
team
B. Develop
baseline
assessment
methodology and
approach
C. Develop
assessment
criteria
D. Implement
baseline study,
review and
evaluate results

20. A. Building an effective management team
• Representation: Involve
representatives from different
internal departments and suppliers
• Knowledge and experience: Ensure
participants have good knowledge of
key operational areas and
experience or understanding of
sustainable tourism
• Organisation: Appoint a “policy
sponsor” or “leader” for overall
responsibility / ownership in
developing and managing the policy

21. Source: Tour Operators’ Initiative for Sustainable Development (TOI) 2004, Supply Chain Engagement for Tour Operators: Three Steps Toward Sustainability, TOI, France
•Provide resources and top-
level support for the
program
Company Board
•Use sustainability
performance as a factor in
selecting suppliers
•Incorporate sustainability
clauses into contracts with
suppliers
Contracting
director &
Managers
•Discuss sustainability issues
and the company program as
part of regular contacts with
suppliers
•Provide feedback and
continuous follow-up with
suppliers
•Facilitate dissemination of
policy and training and
awareness materials
•Identify new local suppliers
entering the tourism sector
Destination
Managers &
Representatives
•Incorporate sustainable
action plans into job
description and staff
appraisals
Human Resources
Director &
Department
•Provide legal advice on
wording, inclusion and
enforcement of sustainability
clauses in suppliers’
contracts
Legal Advisers
•Develop marketing plan to
reflect company’s
sustainable supply chain
strategy
•Provide incentives to
sustainable suppliers with
additional promotions
Marketing
Director &
Department
•Examine the cost
implications of the
sustainability- induced
changes required in the
supply chain and their impact
on prices
Production
Department
•Monitor quality and health
and safety standard of
suppliers
•Incorporate sustainability
performance issues into
monitoring of suppliers
Quality & Safety
Department
•Provide day-to-day
management and
coordination of the program
•Offer advice on sustainability
issues, technical supports,
etc…
Sustainability Unit
•Provide assistance in
development of training
programs for staff and
suppliers on sustainability
issues
Communications/
Training Unit
Role of key departments in sustainable supply
chain policy development

22. B. Developing a baseline assessment
methodology and approach
• What information is
required?
• Who will collect it?
• How will we collect it?
• When will be collected?
• Are there any issues will
affect progress?
Supplier documents & data
Picture source:
http://sisnwinc.com/wp-content/uploads/2013/05/documents12001.jpg

23. C. Establishing sustainability criteria
• Define conditions or measures for
evaluating sustainability
• Cover environmental, social, and
economic aspects
• Gauge suppliers’ level of awareness of
sustainable tourism
• Determine supplier desire and capabilities to implement
sustainable tourism principles and practices
• Identify potential barriers to the implementation of good
practices

24. Examples of economic sustainability
assessment criteria for suppliers
 Supplier pays above minimum
wages
 Supplier implements strategies to
avoid revenue leakages from local
economy
 Supplier has policies on the purchase
of local products and services
 Supplier pays / charges fair prices
to producers

Supplier economic
sustainability assessment criteria

25. Examples of environmental sustainability
assessment criteria for suppliers
 Supplier implements strategies to
reduce waste
 Supplier implements strategies to
recycle products
 Supplier implements strategies
implements strategies to educate
visitors and staff on importance of
natural environment and
sustainability issues

Supplier environmental
sustainability assessment criteria

26. Examples of social sustainability assessment
criteria for suppliers
 Supplier has contracts for all
workers
 Supplier adheres to health and
safety guidelines
 Supplier implements ongoing
workplace training programme
 Supplier provides visitor codes of
conduct to guests

Supplier social
sustainability assessment criteria

27. Using Green Lotus criteria to create a supplier
sustainability checklist
SUSTAINABILITY CRITERIA EXISTS IMPLEMENTATION LEVEL
(1 low -10 high)
A Sustainable
A1.4 Availability of annual plan on implementation of social and cultural activities (both
inside and outside of the tourist accommodation establishment)
 10
A2.2 The staff are trained on cultural and social issues (once a year)  6
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
 0
B3.1 Priority in usage of locally made products or local raw materials without exhausting
natural resources
 0
B5.2 Availability of policies to support female employees (maternity, training, consultation
on reproductive health, etc.)
 3
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
 4

28. 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

29. 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

30. Effective policies and procedures…
• Set the vision

• Reflect current
performance
• Meet
government
requirements

• Identify
performance
areas

• Offer flexibility

• Are mutually
agreed upon

31. 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:
• Aware of the specific environmental, social and economic issues, risks
and opportunities relevant to their operations and products
• Ensure they operate to internationally recognised standards of practice
• Ensure systems implemented deliver effective performance
management and improvement
A1 Tours
Responsible Supply Chain Policy Statement

32. Example of responsible supply chain
procedures
In order to develop a sustainable supply chain, A1 Tours will:
1. Take a leadership role in sustainable supply chain management
2. Screen suppliers for their performance in social, economic and
environmental issues management
3. Support suppliers to improve sustainability performance
4. Set minimum performance standards
5. Consult with stakeholders
6. Monitor compliance to agreements
7. Terminate business relationships if performance remains below
standard or suppliers are unable or unwilling to work towards
performance targets
A1 Tours
Responsible Supply Chain Procedures

33. Other provisions that can support a sustainable
supply chain policy
COMPANY PROCUREMENT POLICY
• Internal policy specific to how company staff
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
COMPANY SUSTAINABLE SUPPLY
CHAIN POLICY
INTERNAL EXTERNAL
supported by
For ensuring
sustainable suppliers
are selected
For ensuring
suppliers act
sustainably
supported by

34. The InterContinental Hotel Group’s
vendor code of conduct
Source: http://www.ihgplc.com/index.asp?pageid=920

35. 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
• Standards may be
either performance-
based, process-based,
or both
• Targets should be high
but achievable
• Standards should be
flexible
• Targets should be
SMART (Specific,
Measurable,
Achievable, Realistic
and Time-specific)

36. Broader supply chain targets vs.
Individual supplier targets
Individual supplier
standards & targets
The level of
improvement for
individual suppliers in
key areas
Broader supply
chain standards &
targets
The overall number or
percentage of suppliers
that are to meet the
given standards in a
period of time
Supplier A Supplier D
Supplier FSupplier E
Supplier B Supplier C
HOTEL, TOUR OPERATOR,
RESTAURANT ETC
SUPPLY
CHAIN
Individual supplier
standards & targets
The level of
improvement for
individual suppliers in
key areas

37. 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 staff
YEAR 2
100% of suppliers have formal
employment contracts and position
descriptions for all their staff
SUPPLY CHAIN TARGETS
SUPPLIER TARGET
All employees within the organisation have a formal employment contract and position
descriptions within 2 years

38. Influences on the setting and achievement of
sustainability targets
INFLUENCES AFFECTING
SETTING & ACHIEVEMENT
OF TARGETS
SUPPLY CHAIN
SUSTAINABILITY
TARGET
Type, severity and
source of
sustainability
impact
Available
sustainability
standards for each
impact
Supplier’s capacity
Organisation’s
ability to influence
the supplier

39. Examples of broad supply chain
sustainability standards and targets
SUSTAINABILITY STANDARD (CRITERIA)
SHORT
TERM
(1 YEAR)
MEDIUM
TERM
(3 YEARS)
LONG TERM
(5 YEARS)
ECONOMIC
Suppliers pay above minimum wages 10% 50% 100%
Suppliers have policies on the purchase of local products and services 30% 100%
Suppliers implement ongoing staff development training programme 5% 15% 70%
… … … …
ENVIRONMENTAL
Suppliers implement strategies for responsible use of electricity 10% 30% 80%
Suppliers implement strategies for responsible use of water 10% 30% 80%
Suppliers implement strategies to reduce waste 30% 50% 100%
Suppliers implement strategies to recycle products
Suppliers promote visitor codes of conduct for interacting in the destination 25% 50% 100%
… … … …
SOCIAL
Suppliers have policy on equal opportunity and gender equality 20% 60% 100%
Suppliers have formal employment contracts covering all staff 30% 50% 80%
Suppliers implement health and safety guidelines 25% 50% 100%
… … … …
WHOLE SUPPLY CHAIN TARGET

40. Sustainable supply chain action planning
• Sets out the activities and
resources required to support
suppliers to meet sustainability
standards and targets
• Requirements:
– Participation and agreement
– Understanding of standards
– Adequate resources including
knowledge and skills

41. The TOI’s tips for effective sustainable supply
chain action planning
Involve suppliers
incrementally
Plan for different rates of
supplier progress
Focus on continuous
improvements
Work with other partners
in the same destination
Source: Tour Operators’ Initiative for Sustainable Development (TOI) 2004, Supply Chain
Engagement for Tour Operators: Three Steps Toward Sustainability, TOI, France

42. Example of responsible supply chain action
plan
Environmental Action / Initiative Responsibility Start date Finish date Status/ Date
achieved
Conduct sustainability audits of suppliers giving
priority to more accessible suppliers
John Smith Oct 2013 Jan 2014 Underway
Assist hotel suppliers conduct waste quick scans Mary Munroe Feb 2014 Aug 2014 Not started
Develop a supplier code of conduct and procurement
policy to support the sustainable supply chain policy
Peter Pan Jan 2013 Feb 2013 Completed
Implement a sustainable supply chain training
programme for key suppliers
Greg Matthews Apr 2013 Aug 2013 Completed
…
 In progress/achieved  In progress / risk of not being achieved  Not achieved

43. 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

44. Key steps in developing a sustainable
contracting system
• Develop approach and procedures for implementation
of sustainability performance as a contracting criteria
• Draft contractual clauses for minimum performance
requirements
• Establish procedures for supplier non-compliance

• Appoint a staff member to manage sustainable supply
chain activities

45. TOPIC 3. RAISING AWARENESS AND SUPPORTING
SUPPLIERS TO MEET SUSTAINABILITY TARGETS
UNIT 6. RESPONSIBLE TOURISM SUPPLY CHAINS

46. The importance of awareness and support in
developing sustainable supply chains
•Develop sustainability
messages
•Communicate sustainability
messages to suppliers
Raising awareness
creates
understanding,
participation and
commitment
•Provide training,
information, networks,
assistance
•Offer incentives and
rewards
Providing support
promotes action

47. Developing awareness raising messages on
sustainability
SUSTAINABILITY
MESSAGES
Reflect
baseline
study results
Select
appropriate
dissemination
channels
Establish
partnerships
Keep
messages
simple
Inform about
overall
programme

48. Communicating messages about broad
sustainability issues
Match
communication
methods to
characteristics of
suppliers
Prioritise personal
communication
Keep
communication
constant with
regular updates
Encourage
feedback
Monitor responses
and support
continuous
improvement


 


49. 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.
Picture sources:
Pixabay, http://pixabay.com/

50. Principles of effective awareness messages
grab
HEART
HEAD
CALL TO
ACTION!
Be consistent
communicate
BENEFITS

51. Communicating the new sustainable supply
chain policy: Key information to deliver
Sustainability policy /
Code of Conduct etc
•The original policy /
procedures / code
etc in full
Background
•Explanation of
comprehensive
development process
adopted
Purpose
•Importance about
why the sustainability
programme is
needed
Affected
stakeholders
•Indication about who
the Policy, Code etc
affects
Benefits &
incentives
•What the direct and
indirect benefits of
adoption will be
Implementation
plan
•What the company
will do next to
instigate the
sustainability
programme
Further
information
•Where to obtain
further information
(or from who) and
how

52. Providing support to meet sustainable supply
chain goals
• The process of businesses helping
businesses is often referred to as b2b
(“business to business”) exchange
• b2b exchange refers to the dialogue
and actions that take place between
companies to create mutual benefits
and gains
• b2b exchange is a good way to foster
sustainability improvements in
tourism supply chains because:
– You have an intimate understanding of
your consumers
– You have access to technology and
information
– By helping your suppliers you are
helping yourself
ORGANISATION SUPPLIER
Awareness raising
Capacity building
Incentives
Improved & more
sustainable goods & services
B2B
EXCHANGE
Picture sources:
Pixabay, http://pixabay.com/

53. Supporting tourism suppliers through capacity
building
CAPACITY
BUILDING
OPTIONS
Training
Informati
on
resource
s
Mentori
ng
Fam trips
Network
s

54. The TOI’s recommendations on incentives for
suppliers to meet sustainability goals
• Suppliers need to be convinced
of the advantages of taking
sustainability measures
• Recognition and rewards help
foster positive action
• Develop a “preferred supplier”
scheme for suppliers that meet
sustainability goals which
offers benefits such as:
 Higher rates
 Longer-term contracts
 Committed
guarantees
 Joint marketing
agreements
 More brochure space
 Joint promotional
activities
 Favoured status in
system sales searches
Source: Tour Operators’ Initiative for Sustainable Development (TOI) 2004, Supply Chain
Engagement for Tour Operators: Three Steps Toward Sustainability, TOI, France

55. TOPIC 4. MONITOR AND EVALUATE
SUSTAINABILITY PERFORMANCE
UNIT 6. RESPONSIBLE TOURISM SUPPLY CHAINS
Picture sources:
Pixabay, http://pixabay.com/

56. The steps involved in a supply chain
sustainability evaluation
Decide what you are
monitoring
Let your suppliers know about
the monitoring programme
Evaluate and assess your
suppliers’ performance
Tell your suppliers how they
are performing
Foster continuous
improvement
Picture sources:
Pixabay, http://pixabay.com/

57. 1. Establishing sustainability criteria for the
evaluation
• Review results of baseline study
• Use the sustainability standards and targets that
have been established ensuring the targets are:
– SMART
– Prioritised
– Applied incrementally
– Written as short statements that require either an
absolute figure, a relative figure, or a simple “yes/no”

58. The 3 main types of indicators
Performance
• Reflect changes in
outcomes
• E.g. The number of
employees with formal
employment contracts
Process
• Reflect changes in
commitment
• E.g. The presence / absence
of a minimum wage policy
Perception
• Reflect changes in attitude
• E.g. The percentage of
suppliers that believe their
sustainability activities have
improved community
livelihoods
Source: UNWTO & SNV Netherlands Development Organisation 2010, Manual on Tourism and Poverty Alleviation –
Practical Steps for Destinations, UNWTO & SNV Netherlands Development Organisation, Madrid, Spain
INDICATOR

59. 2. Communicating the sustainability monitoring
programme and criteria
• Use standard communication approaches
• Ensure the message content includes:
Benefits and
consequences
Evaluation
criteria
Definitions
Criteria
calculation
methodology
Implementation,
roles and
responsibilities

60. Example of letter communicating a
sustainability supply chain programme
Dear supplier,
Thank you for agreeing to work with us to improve your sustainability performance. Consumers and
governments alike are demanding greater sustainability and we believe that by starting now you and us will be
ahead of the competition and also prepared for potential increased government regulations in the future.
At a more direct level, we also believe our sustainability standards will provide immediate benefits to you in the
form of improved worker performance, enhanced reputation and cost savings through greater efficiency….
In order to measure the success of the programme we need to ensure our suppliers are meeting our supply
chain sustainability standards. The key sustainability criteria we shall be monitoring of our suppliers include:
Our supply chain manger will contact you to review the progress quarterly, and kindly request your participation
in providing evidence of performance to meet criteria such as power and water bills, action plans, policy
documents…
…
SUSTAINABILITY CRITERIA UNIT OF MEASURE TARGET
SOC
Supplier has policies on the purchase
of local goods and services
Formally approved company policy
document
1 local procurement policy developed
and approved within 6 months
Supplier provides employment
contracts for all staff
Formally approved worker contract
documents
50% of workforce have employment
contracts in 6 months, 100% in 1 year
ENV
Supplier implements strategies to
reduce waste
Formally approved action plan
Evidence of waste management
activities
At least 3 activities are undertaken in 6
months; 10 activities completed in 1 year
… … …
Criteria
Benefits
Calculations
Implementation,
responsibilities

61. 3. Conducting the sustainability evaluation
• Evaluate suppliers based on the size
of the organisation and its supply
chain and available resources, can
be:
1. Organisation led
2. Contracted 3rd party
3. Supplier self-evaluation
• Collect information from suppliers
and compile into a spreadsheet
table for easy analysis
• Examine results to review
performance for:
– Individual suppliers to meet
supplier targets
– Combined results to meet supply
chain targets
ORGANISATION
SUPPLIER
3RD PARTY EVALUATION
METHODS

62. Example results of a supply chain sustainability
assessment
SUSTAINABILITY
CRITERIA
UNIT OF MEASURE TARGET
SUPPLIER
A B C D E F G H I
Supplier has policies on
the purchase of local
goods and services
Formally approved
company policy document
1 local procurement policy
developed and approved
within 6 months
Yes Yes
Drafted but
waiting
approval
Not started Not started Yes
Drafted but
waiting
approval
Yes Not started
Supplier provides
employment contracts for
all staff
Formally approved worker
contract documents
100% of workforce have
employment contracts in 1
year
20% 50% 90% 0% 10% 0% 30% 100% 50%
Supplier implements
strategies to reduce
waste
Evidence of waste
management activities
10 initiatives completed in
1 year
4 6 6 2 4 0 6 6 4
… … … .. .. .. .. .. .. .. .. ..
Individual supplier performance assessment Poor Average Good Poor Poor Poor Poor Excellent Average
PROCUREMENT POLICIES
NO.
SUPPLIERS
Approved local procurement
policies 4
Draft local procurement policies 2
No local procurement policy 3
TOTAL 9
EMPLOYMENT CONTRACTS
NO.
SUPPLIERS
75%-100% of staff in employment contracts 2
50%-74% of staff in employment contracts 2
25%-49% of staff in employment contracts 1
0%-24% of staff in employment contracts 4
TOTAL 9
WASTE MANAGEMENT
NO.
SUPPLIERS
>5 waste management activities 4
<5 waste management activities 4
0 waste management activities 1
TOTAL 9
Individual supplier assessment
Supply chain assessment

63. 4. Providing feedback to suppliers on
performance
• Write a performance report for each supplier
• Use a simple and easy to understand format
• Highlight the positives
• Provide encouragement for progress
(even if target has not been achieved)
• Provide a conclusion and implications for action

64. Example of presenting sustainability
assessment results of a supply chain
45%
22%
33%
Suppliers with local procurement policies
Approved local
procurement policies
Draft local procurement
policies
No local procurement
policy
22%
22%
11%
45%
Suppliers with staff in formal employment contracts
75%-100% of staff in
employment contracts
50%-74% of staff in
employment contracts
25%-49% of staff in
employment contracts
0%-24% of staff in
employment contracts
45%
44%
11%
Waste management initiatives in 2013
>5 waste management
activities
<5 waste management
activities
0 waste management
activities

65. 5. Ensuring continuous improvement in
sustainable and responsible purchasing
Keep support
targeted
Look forward to
each assessment
period
Finally, provide
ongoing support to
suppliers to help
them meet
sustainability goals
Finally, provide ongoing
support to suppliers to help
them meet sustainability
goals

66. Xin trân trọng cảm ơn!
Thank you!