Asda and Co-op to work together to drive supply chain efficiencies
Asda and the Co-op are pioneering a new way of supply chain collaboration, by enabling mutual suppliers to submit aggregated data on waste, water and energy to both retailers at the same time.
The retailers are working with collaboration platform 2degrees to collect the sustainability data.
Under the agreement, suppliers who serve both retailers can submit the data once, indicating their combined data should be shared with both customers.
It is hoped that by eliminating the need for duplicated information, suppliers will be able to spend more time focussing on the delivery of quality products whilst saving on time, money and resources.
Both retailers have seen suppliers benefit from the platforms delivered by 2degrees. The Co-op, one of the founding partners of multi-client platform Manufacture 2030 has already seen a drinks supplier start addressing their carbon footprint through the platform.
Andy Horrocks of Kingsland Drinks, said: “We are looking closely at a case study shared by another drinks supplier on Manufacture 2030, and using it as a model of how this key environmental process could be done, helping us to sell the idea internally.”
Princes Limited is a key supplier to both Asda and Co-op, and has spoken of the benefits of aligned data.
David McDiarmid, Corporate Relations Director at Princes Ltd, commented: “It’s great that two retailers like Co-op and Asda have embraced this approach. With all our manufacturing locations sharing their data between these customers we have cut down duplicated effort, saving time and making the entire process a lot more efficient.
“I hope other retailers will see the benefits of such a collaborative approach and consider it for their suppliers environmental reporting.”
Laura Babbs, Sustainability Manager, Asda commented: “So far Asda has seen fantastic results from working with 2degrees on the Sustain & Save Exchange (SSE) platform.
“Allowing our suppliers to remove duplicated effort has engaged our supply chain giving them the opportunity to drive efficiencies. We have worked with 2degrees and the supplier advisory board to make the request as simple as possible for suppliers.
“We appreciate that smaller businesses may not have the resources, so providing this reporting function and enabling them to share data will save them time and put their efforts into other critical areas.”
Sarah Wakefield, Food Sustainability Manager at the Co-op, added: “The Co-op is committed to a better way of doing business and we believe that collaborating on data collections means our suppliers can focus on what matters most – making great quality products with the lowest environmental impact possible.
“We are also heavily focused on building long-term relationships with our suppliers and this forms part of a better and more collaborative way of us working together.”
Martin Chilcott, CEO 2degrees, commented: “Both retailers have heard extensive feedback from suppliers that differing requests burn resource – which could be better used making great products as efficiently as possible.
“Simplifying life for suppliers, while getting important data is essential – and we invite other retailers to join this revolution to help their supply chain save time, money and resource.”
5 Minutes With: Jim Bureau, CEO Jaggaer
What is data analytics, and why is it important for organisations to utilise?
Data analytics is the process of collecting, cleansing, transforming and analysing an organisation’s information to identify trends and extract meaningful insights to solve problems.
The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions. Spend analysis and other advanced statistical analyses eliminate the guesswork and reactivity common with spreadsheets and other manual approaches and drive greater efficiency and value.
As procurement continues to play a central role in organisational success, adopting analytics is critical for improving operations, meeting and achieving key performance indicators, reducing staff burnout, gaining valuable market intelligence and protecting the bottom line.
How can organisations use procurement analytics to benefit their operations?
Teams can leverage data analytics to tangibly improve performance across all procurement activities - identifying new savings opportunities, getting a consolidated view of spend, understanding the right time for contract re-negotiations, and which suppliers to tap when prioritising and segmenting suppliers, assessing and addressing supply chain risk and more.
Procurement can ultimately create a more comprehensive sourcing process that invites more suppliers to the table and gets even more granular about cost drivers and other criteria.
"The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions"
Procurement analytics can provide critical insight for spend management, category management, supplier contracts and negotiations, strategic sourcing, spend forecasting and more. Unilever, for example, used actionable insight from spend analysis to optimise spending, sourcing, and contract negotiations for an especially unpredictable industry such as transport and logistics.
Whether a team needs to figure out ways to retain cash, further diversify its supply base, or deliver value on sustainability, innovation or diversity initiatives, analytics can help procurement deliver on organisational needs.
How is data analytics used in supply chain and procurement?
Data analytics encompasses descriptive, diagnostic, predictive and prescriptive data.
Descriptive shows what’s happened in the past, while diagnostic analytics surface answers to ‘why’ those previous events happened.
This clear view into procurement operations and trends lays the groundwork for predictive analytics, which forecasts future events, and prescriptive analytics, which recommends the best actions for teams to take based on those predictions.
Teams can leverage all four types of analytics to gain visibility across the supply chain and identify optimisation and value generating opportunities.
Take on-time delivery (OTD) as an example. Predictive analytics are identifying the probability of whether an order will be delivered on time even before its placed, based on previous events. Combined with recommendation engines that suggest improvement actions, the analytics enable teams to proactively mitigate risk of late deliveries, such as through spreading an order over a second or third source of supply.
Advanced analytics is a research and development focus for JAGGAER, and we expect procurement’s ability to leverage AI to become even stronger and more impactful.