Building strong supplier relationships on an embedded approach

Producing great programmes, making quality products for our customers to use in their homes and running our offices efficiently are all part of what Sky does every day, and this means working with a diverse set of suppliers. Because our impacts extend right through our supply chain, it’s really important to us that we hold our suppliers to the same high social, ethical and environmental standards we hold ourselves to.

We have a two-fold approach to responsible sourcing, working on standards and risks and working in partnership with our suppliers. This robust and embedded approach is led by our procurement teams in each business area. They work closely with our suppliers to get the best out of working together. This includes addressing any ethical, social and environmental concerns as well as identifying opportunities for making things work better.

As our suppliers vary significantly – from local production companies to global electronics manufacturers – we need to understand where the ethical, social and environmental risks are so that we know where we need to focus our attention most. That’s why we do a risk assessment of all suppliers over £100k per year, looking at factors like factory location, the legal and political situation and any previous concerns. 

Where we need to dig a little deeper for information about our higher risk suppliers we’ve made it easier for them by working with Sedex, who provide an online supplier management tool that we can tap into for the information we need. Embedding the Sedex tool into our supplier management system makes the ethical, social and environmental issues clearer for our procurement teams to identify and address.

When it comes to our products, we’ve brought design in house so that we can have greater control over the components that are used, and the standards that are being adhered to. Because we have a relatively small number of products we have an opportunity to evolve our approach, working with our suppliers as business partners – not just ‘you supply goods, we buy them from you’ - but a sustainable relationship where both sides see the benefit of working together for long-term success. 

In practice this means that in our meetings with these suppliers, we will consider all aspects of our business together – logistical, financial, social, ethical, and environmental – as one conversation. If we can work together to achieve more effective delivery logistics, for example, we can both save costs and time, and reduce any negative social or environmental impact. 

In other words, it’s about setting standards and auditing where we need to, while working together to achieve mutual success in the long term.

To keep update on all the latest developments, head to our Bigger Picture website or follow us on twitter at @skybiggerpic.