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Strategic alliances and co-responsibility: fundamental aspects of supplier relations

Organised jointly by the SERES Foundation and ESADE, this event brought together executives from Leroy Merlin, the Siro Group and Danone to discuss the impact of supplier policies on the value chain
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“It is essential to incorporate ethical, social and environmental quality into the value chain of companies to ensure proper functioning and achieve an optimal corporate social responsibility policy.” These were the words of Ignasi Carreras, Director of the ESADE Institute for Social Innovation, at a session entitled “Co-responsibility in Policy Development with Suppliers”, organised by the SERES Foundation and ESADE. According to Mr. Carreras, “One of the dominant trends in relations between companies and suppliers is ‘shared value creation’, although the number of companies that have adopted this approach remains small.”

Lucila García, Deputy Director General of the SERES Foundation, observed that “75% of companies have created or adapted their products and/or services within the framework of CSR”. This figure was taken from the most recent SERES-Deloitte Report on the Social Impact of Companies. “Decisive measures are being taken in terms of sustainability within companies,” Ms. García observed, adding: “It is necessary to transfer these measures to the rest of the supply chain.”

Commitment to the business community

The French multinational Leroy Merlin currently has more than 1,700 merchandise suppliers, ranging from local small businesses to large multinationals, 85% of which are Spanish companies. Eduardo Nussio, Materials Market Director at Leroy Merlin Spain, highlighted the company’s commitment to its suppliers. “In order to strengthen the relationship between the two parties, it is necessary to work along the lines of transparency and closeness,” he commented.

“Sharing and generating mutual knowledge is essential in order to undertake common collaborative projects that benefit both parties,” commented Carmen Cobián, Director of Institutional Relations at the Siro Group, before adding: “The Siro Group’s criteria for the selection of suppliers are based on sustainability, proximity and efficiency.” She mentioned various projects implemented by the Siro Group – including the “Ant Project” and the “Siro Agro Project” – that have consolidated and strengthened the link between the company and its suppliers.

Borja Lafuente, CSR and Public Affairs Manager at Danone Iberia, noted that his company’s sustainability policies are linked to the value chain. He explained that Danone has launched various action plans, including one called the “Livestock Plan”, which aims to strengthen the ties between the company and its suppliers.

Fostering a culture of collaboration

“It is essential to build an intense, long-term relationship with suppliers in order to foster a culture of collaboration,” commented Mr. Nussio. “This allows us not only to strengthen the ties between us but also to further develop the market.” Ms. Cobián explained that the Siro Group has developed a supplier-relations model based on strategic alliances and received the 2017 AERCE Award for Supplier Value Chain Integration for its efforts. “Our relationships with suppliers are based on a win-win philosophy,” explained Ms. Cobián. “Transparency, trust, stability and a long-term vision are essential aspects of this relationship model.” In order to achieve an optimal relationship with suppliers, Mr. Lafuente noted, it is necessary to “work for a common benefit and create strategic alliances”. To do this, he argued, “it is essential to understand what our partners and society want and what they need”.