Supply Chain Management
Scale of Supply Chain
MCI contracted over €350 million of services in 2017, of which €266 million was direct spend and the rest was indirect spend on behalf of our clients. Our largest category of procurement is hotels which accounts for more than half of our total spend. Venues, Food, Audio Visual, Transport, Temporary Staffing, Print and Destination Management Services services make up the rest.
Managing our Supply Chain
At a strategic level the sustainability of our supply chain is managed by our Group Procurement Team and our HQ Sustainability Team. Driving our commitment across the supply chain, each major office has a Local Procurement Coordinator.
Our environmental, social and ethical requirements are communicated to our supply chain through the MCI Supplier Code of Conduct. Compliance with this policy is a core component of our group and local preferred supplier agreements.
All new group and local preferred suppliers must sign and comply with this Supplier Code of Conduct, and all contract renewals must include it also.
Challenging the system
Sustainability performance of our suppliers varies significantly around the world and consistency is one of our challenges. The second key challenge is that some providers charge extra for more sustainable products and services. One of the key tasks for our talents is to demonstrate to our partners that sustainability is important to MCI and to challenge them to provide sustainable services and products at parity costs.
Training our Talents and Partners
We delivered 13 webinars and 10 sustainability training classes to our talents in 2017 that addressed sustainable procurement, operational and sales practices. We conducted 35 workshops for our suppliers and industry peers, engaging 3,700 people, sharing our knowledge and searching for new ways to collaborate.
Plans for the future
We will role out an improved risk management process and focus on improving performance of both group and local providers.
“Sustainability and diversity are critical in procurement, and MCI actively engages with our partners to encourage a sustainable and manageable supply chain. Continuity is key, contributing actionable initiatives spanning the duration of our partnerships, for year on year measurement and improvement. We work with our hotel partners and procurement community to identify the properties that offer sustainable solution for our clients – from furniture, fixtures and equipment, to locally and organically sourced produce. We believe that ethically responsible choices are key to our client’s success and our embedded in our contractual policy when selecting vendors. MCI’s commitment to sustainability has been encouragingly received from suppliers, and we look forward to the continuation of these positive outcomes.”
Jodie Torriani, Head of Global Hotel Procurement & Strategic Sourcing
MCI Supply Chain: Key Spend Categories 2017
Managing our highest spend category – hotels
In 2010, 23 hotels had signed our Code of Conduct. This increased in 2013 to 73% of our preferred partner hotel chains, and in 2014 we increased compliance to 98% of our preferred hotels partners. From this total, 90% of hotels signed up to our Code of Conduct and a further 8% had their own Code of Conduct, which after review provided acceptable levels of sustainability performance.
In 2017 we focused on increasing the procurement compliance of local hotels that are outside of our large chain agreements. The MCI’s Code of Conduct is now an inherent part of the local contracting agreement with these partners.
Assessment of supplier compliance against our Code of Conduct is conducted on a random and specific basis. For high profile large events, our Sustainability Services team is frequently involved to assess and audit performance. For the majority of suppliers our local and group procurement team are provided with tools to allow them to assess performance and risk.
Key risks that have been identified in audits include the management and impact of water, food and beverage, their supply chain, health and safety and compliance. We have identified supplier assessment as an area where we need to improve and create more rigorous procurement processes.
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