AA Sust Report 2006 - Rio Tinto

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11 04 MARKET POSITION AND SUPPLIERS Integrating sustainability into procurement and sales n 2005 AAM contracted with 974 suppliers and OUR PRIORITIES I • Introduce Sustainable Development (SD) concept to our supply and contracting community. • Introduce specific SD targets to all new contracts placed in 2006 over the value of £100K. • Continue to leverage benefits from the services provided by the Strategic Procurement Group (Comalco). Louise Crawford, Buyer, Business Services contractors, with a total expenditure (excluding electricity and alumina) in excess of £34M. Integrating SD at the pre-tender stage In 2005, as an initial step to integrate SD principles into the supply chain, the AAM procurement team developed a pretender SD qualification process for raw material suppliers. The process requires potential suppliers to complete an 'AAM Request for Proposal' (RFP) document. This pretender document was created to seek an understanding from potential suppliers of their current SD practices. Answers to SD questions along with a pre-contract site visit establish a SD rating. The rating determines if a supplier is qualified to receive an AAM tender. Supplier performance “learning together” The objective of the procurement function is to increase business value by building long term relationships with suppliers and contractors that are similarly committed to high standards of performance in the areas of environment, health, safety and community. AAM monitors supplier and contractor performance in these areas. The procurement team, along with the internal customer, engages with suppliers and contractors when a deviation is reported. This engagement ensures that a 'learning relationship' is established as well as maintaining a sound commercial one. SD on the learning agenda In 2005 members of the procurement team commenced a National Vocation Qualifications (NVQ) programme. This programme was initiated to widen the knowledge of procurement principles. Part of the programme included the collation of SD activities by the team. In 2005 two members of the team completed NVQ Level 3, doing so ahead of plan. They will commence NVQ Level 4 in 2006. “Back Haul”, saving money, fuel and double handling… working smarter not harder! Buyers Louise Crawford and Meirion Davies jointly developed a logistics strategy that enabled regular collection of a key raw material following the delivery of aluminium to a customer. It is common practice for haulage companies to return to their yards empty after a delivery. Working with the raw material supplier, the haulage company, and the internal customer, a collection schedule was developed that enabled the haulage company to collect AAM's raw material when returning to their yards. This model is now part of a Six Sigma project by Louise which has a potential to not only save money but also valuable wasted miles, and in turn the environment. Meirion Davies, Systems Specialist, Business Services
05 COMMUNITIES Supporting sustainable communities OUR PRIORITIES • Engage local communities to ensure our approach to providing information meets their needs. • Contribute to local community development programmes in ways that deliver mutual benefit and long-term sustainable results. • Respecting and protecting cultural heritage, through responsible management of land and access to resources. We seek to be a valued member of the community and through our actions within this environment contribute by benefiting employees, customers, community members and shareholders. During 2006 we will carry out a feedback survey of community stakeholders. Ron Douglas presenting Royal Institution certificates to students at the Mathematics Master Class, University of Wales, Bangor 12
Page 1 and 2: www.angleseyaluminium.co.uk sustain
Page 3 and 4: Welcome to the 2005 Anglesey Alumin
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Page 7 and 8: Karen Hughes, Industrial Hygiene Te
Page 9 and 10: 03 OUR BUSINESS APPROACH Achieving
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Page 21 and 22: 09 PERFORMANCE SUMMARY John Jeffrey

AA Sust Report 2006 - Rio Tinto

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