Supply chain and purchasing

Pernod Ricard maintains close partnerships with its suppliers in order to ensure ethical business practices and sustainable development of its activities. In all Group subsidiaries, these partnerships are built on specific requirements and regular controls.

Evaluating supplier performance

The Purchasing Department now includes environmental criteria in its calls for tender and takes them into account when selecting suppliers.

Assessing suppliers

Since 2005, the Group Purchasing Department has distributed a questionnaire, “Commitment and Sustainable Development”, to its main international suppliers. Its objective is to evaluate these suppliers according to environmental and social criteria.

246 of the 280 suppliers contacted in 2006-2007 completed the questionnaire. They are all committed to respecting ethical standards linked to employment law. 85% have already studied the environmental impact of their activities and 30% hold ISO 14001 certification (international standard concerning environmental management systems).

A new organisational structure dedicated to performance and sustainable development

In June 2007, the Purchasing Department brought together the main suppliers to present the Group’s new purchasing structure and share with them the actions taken in the field of sustainable development. Each purchasing category is managed by a Category Team composed of at most six people (one person for each geographical area). These Category Teams have defined overall strategies for purchases in their category.
This new organisation should make it possible not only to establish a coordinated purchasing strategy that will result in real savings, but also to meet major challenges such as the constriction of the glass market and rising energy and raw materials prices. The Category Teams are also an excellent vehicle for sustainable development initiatives.

Improving supply chain procedures

In 2008, Pernod Ricard implemented new procedures of economic planning and sales forecasts within its subsidiaries
The goal of these processes is to reinforce method effectiveness, especially by avoiding last-minute and environmentally costly solutions, such as relying on air transportation for express deliveries.


Ensuring ethical purchasing

Pernod Ricard has undertaken various initiatives to ensure that the Group’s Purchasing Department complies with ethical codes:

  • All buyers must respect the ethical guidelines that have been introduced. These guidelines have been widely distributed among subsidiaries and, in some cases, have been sent to suppliers.
  • A “Sustainable Development” module has been integrated into the Purchasing training seminar for buyers.
  • The eco-design guidelines for packaging have been sent to subsidiaries’ purchasing teams. They have been designed to raise awareness among even more employees.
  • A “Corporate Social Responsibility” clause has been added to subsidiaries’ terms and conditions of purchasing.
  • The “Commitment and Sustainable Development” questionnaire has been sent to the Group’s main suppliers and those in the process of being referenced. It has been revised so it can be extended to all service providers.