Supplier Engagement
Supplier engagement is a cornerstone of any responsible sourcing strategy. Regular communication, clearly outlining current requirements, future expectations, and shared improvement goals, helps hotels access responsibly produced goods at competitive prices while building stronger, more transparent partnerships.
Regular communication, clearly outlining current requirements and future expectations, and sharing improvement goals, helps hotels access responsibly produced goods at competitive prices while building stronger, more transparent partnerships.
Assessing supplier sustainability and responsible business practices can be challenging, particularly across a large number of vendors. Online assessment platforms can help track supplier performance across environmental, ethical, social, and procurement metrics; these tools are typically used at the corporate level in the hospitality sector.
Hotels should conduct a preliminary vetting of suppliers before the formal Request for Proposal (RFP) process. The following questions can help initially assess a supplier’s sustainability practices. Ideally, suppliers will answer positively to all; however, if a supplier is still developing these capabilities, hotels can determine whether to collaborate on improvements or engage suppliers that are already meeting the desired standards.
RFP Must-Haves
- Does your company have a formalized sustainability policy?
- Does your company have a sustainability/responsible business assessment rating?
- Does the product you are putting to bid have any active third-party sustainability certifications or other environmental/social claims?
- Suppliers may claim a product has sustainability attributes without having a third-party certification. Ensure product claims such as recycled content and recyclability/compostability are validated with legitimate documentation from the supplier.
- Does the company track and report its energy and water usage and waste?
- Does the company’s products or services contribute to deforestation, impacts to water quality or contain any hazardous chemicals or substances?
- Does your company have a human rights policy?
- Is there any other information regarding environmental or social aspects associated with your products/services or business operations you’d like to share?
*Depending on the category being contracted for, more tailored questions can be asked. For instance, if the contract is for eggs, there should be a specific question about whether the supplier can provide cage-free, free-range, organic or pasture-raised eggs.
Review sample contract clauses to ensure sustainability requirements are delivered.
Supplier Incentives
Hotels should consider giving preference and incentives to suppliers that meet or exceed sustainablility requiresments. Incentives can include faster payments, longer contract terms and public recognition and awards for their efforts.