Supply Chain Sustainability Portal – Powys County Council Social Care Decarbonisation

Where do you start when you need to measure the green credentials of your supply chain. Powys County Council, via the WLGA, shared a case study with us of what they did, how they did it and what they’ve learned.

Powys County Council has declared climate and nature emergencies and is committed to national Net Zero goals. With 74% of its emissions in the supply chain, collaboration with suppliers is crucial to meet carbon reduction targets.

Social care is the largest expenditure category, accounting for over a third of total supply chain costs annually. Annual carbon accounts submitted to the Welsh Government reveal that the social care sector is a significant carbon emitter, primarily due to energy consumption of buildings and extensive travel required for services.

A strategy was developed to decarbonise the supply chain, positioning social care among the top three service areas for strategic decarbonisation.

The process revealed a significant knowledge gap in ESG sustainability and biodiversity within the social care supply chain. To activate the decarbonisation strategy, a tool was needed for targeted interventions to reduce environmental impacts and improve sustainability practices.

Allocating skilled resources to large contracts and automating processes for SMEs improves efficiency and effectiveness. The council recognised the importance of supporting suppliers in their decarbonisation efforts, improving the maturity and competency of the supply chain.

Rather than imposing barriers, a collaborative approach was chosen, fostering a cohesive, dynamic, and committed supply chain. This enhances SME capabilities, making them more competitive and sustainable. Promoting competition through the portal diversifies the market, leading to better pricing, innovation, and sustainability.

The Sustainability Supply Chain Portal was created to upskill social care SMEs, aiding their decarbonisation activities and that of the Powys County Council supply chain. The portal provides essential information on social care, procurement, and climate change. A 90- question survey assesses each organisation’s decarbonisation progress, generating tailored suggestion plans structured into a five-step process.

Tracking supplier usage of the portal measures engagement and effectiveness of sustainability initiatives.

Benefits of this Initiative

The strategic benefits of the Supply Chain Sustainability Portal to the organisation include the following but not limited to:

Enhanced Supplier Knowledge: The portal provides suppliers with crucial ESG and sustainability information, aligning their practices with council goals and enhancing their sustainability credentials.

Improved Tendering Process: By offering targeted knowledge and resources, the portal helps suppliers prepare better for tenders, increasing successful bids and fostering a competitive market.

Decarbonisation Support: The portal offers tailored plans to help suppliers reduce their carbon footprints, supporting the council’s Net Zero targets by 2030/2050 with specific, actionable steps.

Data-Driven Decision Making: Featuring a comprehensive dashboard, the portal tracks and reports supplier engagement, providing valuable insights for optimising procurement and sustainability initiatives.

Cultural Shift: The portal fosters a culture of continuous improvement and collaboration, encouraging suppliers to adopt sustainable practices and enhancing supply chain maturity.

Market Diversification: By promoting competition, the portal diversifies the market, leading to better pricing, increased innovation, and improved sustainability as suppliers strive to differentiate themselves.

Efficiency and Effectiveness: The portal automates processes, particularly benefiting SMEs, and allocates skilled resources to larger contracts, improving the efficiency and effectiveness of supply chain management.

All the benefits of the Supply Chain Sustainability Portal are available in the dashboard which is leveraging data analytics for optimising the integration of ESG sustainability, and biodiversity in procurement decisions.

Innovation

The following aspects of the approach have been particularly innovative, creative and ground-breaking, while remaining within the bounds of procurement legislation.

1. Using Generative AI to Build Suggestion Plans: The use of generative AI to create tailored suggestion plans for suppliers is a cutting-edge approach. This technology analyses supplier responses and generates customised, actionable plans to help them decarbonise and improve sustainability practices.  By leveraging AI, the portal can provide highly specific and relevant recommendations, making the decarbonisation process more efficient and effective for each supplier.
2. Usability and Accessibility of the Portal: The portal is designed to be user-friendly and accessible, ensuring that all suppliers, regardless of their size or technical expertise, can easily navigate and utilise its resources. This inclusive design promotes widespread adoption and engagement, making it easier for suppliers to participate in the decarbonisation journey. The portal serves as a comprehensive “one-stop shop” for social care suppliers, providing all necessary information and resources in one place. This centralised approach simplifies the process for suppliers, reducing the time and effort required to access critical information support.
3. Tackling Scope 3 Emissions – Supply Chain: The portal’s focus on Scope 3 emissions (Supply Chain), which make up over 74% of the council’s emissions, represents a forward-thinking approach to Scope 3 emissions. By addressing these often-overlooked emissions, the portal provides targeted interventions and plans for effective carbon reduction, leading to tangible emission reductions and supporting broader environmental goals. Additionally, the portal enhances data quality for accurate carbon reporting, aiding the transition to Tier 2 reporting and improving transparency and accountability in sustainability efforts.
4. Competitive Advantage: The portal provides suppliers with insights and answers to procurement-related questions, helping them understand and meet the council’s sustainability criteria. This support gives suppliers a competitive edge, enabling them to better position themselves for council contracts.

Engagement

To ensure that the approach was thoroughly scoped and designed with improving sustainable outcomes – the following engagement was undertaken.

1. Internal Engagement – Social Care Teams: Extensive consultations were held with social care teams to understand their specific needs and challenges. This collaboration ensured that the portal was tailored to address the unique requirements of social care services, making it more effective and relevant. Developers: Close collaboration with the development team was crucial in designing and building the portal. Regular feedback loops and iterative development processes ensured that the portal was user-friendly, functional, and aligned with sustainability goals.
2. Collaboration with Other Local Authorities: RCT (Rhondda Cynon Taf) and Newport: By collaborating with other local authorities such as RCT and Newport, we were able to share best practices, gather diverse insights, and ensure a more comprehensive approach. Powys County Council were able to utilise and build on a carbon baselining tool that RCT have published for their supplier to use and embed that tool in our portal for all of our social care supplier to use.
3. External Engagement – Supply Chain: Engaging with the supply chain was a critical component of the project. Suppliers were involved in testing the portal to ensure it met their needs and was easy to use. This hands-on testing phase allowed Powys County Council to gather valuable feedback and make necessary adjustments to improve the portal’s functionality and effectiveness. This iterative process ensured that the final product was robust and user friendly.
4. Collaboration with Business Wales: Rollout of the Portal: Partnering with Business Wales was instrumental in the rollout of the portal. Business Wales provided valuable support in promoting the portal, suppliers, and ensuring widespread adoption. Their expertise and resources helped in reaching a broader audience and facilitating the transition to more sustainable practices.

Specific Challenges

• Time and Budget Constraints: The development and implementation of the Supply Chain Sustainability Portal required careful planning and resource allocation.  To overcome these constraints, we adopted an agile project management approach. This allowed us to prioritise critical tasks, make iterative improvements, and ensure efficient use of resources. Regular progress reviews and adjustments helped keep the project on track and within budget.
• Scope and Resource Management: Defining the project scope and ensuring adequate resources were available helped to balance the need for comprehensive functionality with the available resources required strategic decision-making. By engaging stakeholders early and continuously, we ensured alignment and managed expectations. Resource allocation was optimised by leveraging cross-functional teams and external expertise where necessary.
• Marketing the Portal Effectively: Marketing the portal to a diverse and extensive supply chain was challenging. We developed a targeted marketing strategy that included direct outreach, informational webinars, and collaboration through contract managers. By highlighting the benefits of the portal and providing clear, concise information, we were able to generate interest and encourage participation.
• Gaining Supplier Buy-In: Convincing suppliers of the importance of carbon reduction and securing their commitment to the initiative was a significant hurdle.  We emphasised the long-term benefits of carbon reduction, such as cost savings, regulatory compliance, and enhanced reputation. Additionally, we expressed that gaining knowledge in ESG sustainability can be used as a competitive advantage as it would add significant value to their organisations.
• Suggestion Planning Using AI: Ensuring that the AI-generated suggestion plans were accurate, relevant, and actionable for suppliers was crucial for the success of the portal. We conducted extensive testing and validation of the quality and reliability of the suggestion plans. Internal expertise and feedback from pilot users were incorporated to refine the recommendations.

Outcomes of the procurement initiative

• Improving Tendering and Contract Management: Using the Supply Chain Sustainability Portal in the qualification envelope has improved the council’s tendering process by providing essential knowledge to suppliers. This helps them align submissions with the 2030 net-zero goal and strengthens contract management by increasing ESG and biodiversity awareness, empowering suppliers to submit compliance data confidently.
• Upskilling ESG Sustainability, and Biodiversity: The primary objective of the Supply Chain Sustainability Portal was to enhance the capabilities of rural SMEs by equipping them with the knowledge and tools to implement Environmental, Social, and Governance (ESG) practices, sustainability measures, and biodiversity conservation. The tailored five-stage suggestion plans, developed from survey insights, will significantly increase awareness and adoption of sustainable practices among these enterprises.
• Upskilling the Service Area: The development of the portal leveraged in-house ICT resources to create a professional platform. The inclusion of social care in the initial phase has enhanced the service area’s knowledge in sustainability and biodiversity. This project has catalysed a cultural shift within service areas, fostering behavioural changes that support our sustainability goals.
• Reducing Scope 3 Supply Chain Emissions: The Supply Chain Sustainability Portal is part of the Sustainable Procurement Programme, which aims to reduce Scope 3 emissions and achieve Net Zero by 2030/2050. By educating suppliers on carbon reduction, the council has strengthened supply chain relationships, enabling effective emission tracking and significant progress towards Net Zero targets.
• Data-Driven Decision Making: To track and report supplier usage of the Supply Chain Sustainability Portal, a dashboard has been developed to leverage data analytics for optimising the integration of ESG sustainability, and biodiversity in procurement decisions. By fostering a culture of continuous improvement, the inclusion of these elements in tender management can be enhanced as the supplier base in social care expands its knowledge of such initiatives

The Shared Experience

1. Positive Feedback: The Supply Chain Sustainability Portal has received commendations from Senior Leadership Teams (SLT), Welsh Government (WG), and various local authorities. They have praised the portal for striking a balance between delivering complex sustainability theory in a way that the average person can understand.
2. Transferable to Other Service Areas: The principles and functionalities of the Supply Chain Sustainability Portal are not limited to social care alone. They can be adapted to other service areas such as Place including Transport, Construction and Housing and Corporate Services. This adaptability ensures that the benefits of sustainable practices can be extended across various departments, promoting a holistic approach to sustainability.
3. Principle is Transferable to Other Local Authorities: The core principles of the portal, such as transparency, accountability, and sustainability, are highly transferable to other local authorities. By adopting similar systems, other councils can achieve comparable benefits, including cost savings, reduced carbon emissions, and enhanced social value.
4. 4. Welsh Local Government Association’s (WLGA): The portal’s success and methodologies have been showcased nationally, including presentations to the WLGA Climate Strategy Panel’s Procurement Decarbonisation Group. These presentations have highlighted the portal’s impact on procurement decarbonisation and have served as a model for other local authorities aiming to achieve net-zero targets.

Lessons Learned

1. Importance of Transparency: Transparent communication and detailed reporting on sustainability metrics foster trust and accountability among stakeholders.
2. Continuous Improvement: Sustainability is an ongoing journey. Regular updates and refinements based on feedback and performance data are essential for continuous improvement.
3. Stakeholder Engagement: Early and frequent engagement with stakeholders helps align goals and expectations, leading to more effective implementation of sustainability initiatives.
4. Data-Driven Decisions: Utilising data analytics to track performance and identify areas for improvement has been instrumental in achieving measurable benefits