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Case Study: Sanofi and Sustainable Supply Chain Success

November 29, 2018

Coupled with the high visibility and healthcare regulatory scrutiny already needed to be a leader in  pharmaceuticals, the entire Sanofi sustainable supply chain and procurement function faces a big  challenge to  carry out these beliefs and commitments throughout their supply chain.

 

Drivers and Challenges

Sanofi Sustainable supply chain and CSR strategy  is  built  on  four  key  areas:  Patients  (safety  and access to healthcare),  Ethics  (ethics  in  R&D  and  business  ethics),  Environment  (pharmaceuticals in the environment) and People (workforce development), with  Human Rights as a foundation of the CSR approach.  Within  this  context  they  identify  four  levers  that  structure  the  responsible  procurement strategy:

  1. Compliance with regulations
  2. Risk management to secure sourcing and protect the Group’s reputation
  3. Drive  innovation  with  suppliers,  where  they  see  an  opportunity  to  differentiate their value chain.
  4. Set  KPIs  and  deliver  quantifiable  CSR  results–  (ex:  they  seek  to  be  positioned in the top ranking of the DJSI rating)

A specific challenge they face as a globalized procurement function spread across  seven regions and 80 countries:

  1.  How  to  cover  all  risks  represented  by  a  wide  supplier  base  in  a  highly  exposed industry?
  2.  How  to  implement  the  same  CSR  standards  and  practices  amongst  all  suppliers,  considering  their  specificities  (global  suppliers,  local  suppliers,  strategic suppliers etc.)?

Best practices: Adapting a Mature Program Sanofi began to pursue their sustainable procurement initiative as early as 2007.

In 2011 they selected  EcoVadis as a strategic  partner of their suppliers’ CSR performance evaluation process. A pilot was launched in 2011 as a group initiative. As results began to emerge in 2012, the program was expanded and evolved to  be a central part of their Supplier Relationship and Risk Management.

Key Facts

  • 33.8B Euro in revenue (2014)
  • 13B Euro spend (2014)
  • 110,000 employees
  • DJSI (9yrs), FTSE4Good, Vigeo
  • UN Global Compact, GRI

EcoVadis stats  snapshot

  • >550 suppliers assessed    
  • Category and country risk mapping   
  • 67% of Suppliers meeting Sanofi score expectations

 

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