Paving the Way to Sustainability: ARYZTA’s Journey Towards Supply Chain Visibility with Sedex
The Challenge: Scaling Sustainability Across 13,000 Suppliers
ARYZTA, a global leader in the international bakery sector with operations spanning Europe, Asia, Australia, and New Zealand, faced a monumental challenge in 2023. With over 13,000 suppliers worldwide, the company needed to implement a new supplier code of conduct and ensure its enforcement across its vast supply chain. ARYZTA set ambitious goals: conducting SMETA audits on 500 supplier sites by 2028 and achieving supply chain visibility of focused suppliers by 2026.
The Stakes: Beyond Compliance to Competitive Advantage
For ARYZTA, supply chain sustainability wasn’t just about ticking boxes. It was crucial for:
- Meeting stakeholder and shareholder expectations
- Supporting fair trade and labor practices
- Respecting human rights
- Protecting the environment
- Maintaining zero tolerance for corruption and bribery
Failure to address these concerns could result in reputational damage, loss of market share, and potential legal ramifications.
The Solution: Sedex’s Comprehensive Platform
ARYZTA selected Sedex for its globally recognised platform that uses reliable public sources and offers cost-effective solutions tailored to compliance management needs. As a Sedex member, ARYZTA could co-design future features through engagement opportunities like joining an Expert Advisory Group (EAG).
Sedex provided the tools needed to monitor compliance with ARYZTA’s supplier code of conduct and enforce it effectively. The platform enabled ARYZTA to establish specific KPIs and objectives per category while progressively onboarding suppliers to Sedex—a process requiring time but yielding steady progress.
Implementation: A Multi-Faceted Approach
ARYZTA adopted a structured approach using Sedex to address its challenges:
1. Supplier Engagement: Encouraging suppliers to join Sedex and registering all ARYZTA businesses on the platform.
2. Risk Assessments: Conducting supply chain risk assessments using Self-Assessment Questionnaires (SAQs) and performing SMETA audits when necessary.
3. Action Plans: Identifying high-risk suppliers and countries, then developing targeted mitigation plans by country and commodity.
Additionally, ARYZTA utilised several Sedex tools and services:
- Supplier Engagement Service: Enhanced communication with suppliers.
- Consultancy Projects:
- Benchmarking: Compared ARYZTA’s responsible sourcing practices against peers.
- Risk Assessment: Identified risk hotspots within the supply chain (direct and indirect suppliers).
- Grievance Mechanism Review: Evaluated alignment with international human rights standards and provided recommendations for improvement.
- Ethical Trade Coordinator (ETC): Supported implementation of consultancy recommendations by gathering supplier data through the platform.
Overcoming Challenges: Integration Across a Complex Organisation
As a large organisation with over 30 operations globally, ARYZTA faced integration challenges when using the Sedex platform. Structuring issues arose as the company worked to centralise supplier risk data while maintaining decentralised customer linking under each business unit’s control. To resolve these issues, ARYZTA collaborated closely with its dedicated Sedex Account Manager to explore scenarios that ensured seamless integration without disrupting customer relationships.
Results: Tangible Progress Towards Sustainability Goals
- ARYZTA has achieved significant progress in its sustainability efforts:
- Completed a global geographical and sectorial inherent risk assessment.
- Conducted supplier risk assessments based on SAQs and SMETA audits.
- Benchmarked performance against peers and competitors.
- Assessed its whistleblowing system for alignment with international standards.
- Established ARYZTA group-wide risk mapping and multi-year mitigation risk plan using Sedex platform data and reporting.
Looking Ahead: Building on Success
ARYZTA’s journey with Sedex is far from over. Looking ahead, the company plans to:
1. Increase the number of suppliers onboarded in Sedex
2. Conduct more SMETA audits (targeting 200 sites by the end of 2025 and an additional 300 by 2028)
3. Execution of the risk mitigation plan group-wide
By leveraging Sedex’s comprehensive suite of tools and services, ARYZTA has made significant strides in enhancing its supply chain sustainability, setting a benchmark for responsible sourcing in the international bakery sector.
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