Appendix 1: Abbreviations

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Appendix 1: Abbreviations

Below you can find in alphabetical order all abbreviations that are (widely) used throughout the report. These abbreviations are explained when used for the first time in the report;

• ATL; Above the Line

• BPI; Business Process Improvement • BPR; Business Process Reengineering • BTL; Below the Line

• COBP; Code of Business Principles • DDI; Diagnosis, Design, Implementation • E; Europe

• HPC; Home and Personal Care • MM; Marketing Materials • NPI; Non Production Items

• NPI E MM; NPI Europe Supply Management Marketing Materials team • OpCo; Operating Company

• PAQ; Pre-Audit Questionnaire

• SBMP; Supplier Base Management Process • SPR; Supplier Performance Rating

• SRM; Supplier Relationship Management • TCO; Total Cost of Ownership

• UK; United Kingdom

• UNPA; Unilever Purchase Agreement • VP; Vice President

Appendix 2: Countries in scope of NPI Europe Marketing Materials

Austria Netherlands

Belgium Nordics

Czech Republic and Slovak Republic Poland

France Portugal

Germany Russia

Greece Spain

Hungary Switzerland

Ireland United Kingdom

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Appendix 3: Field research material

Brainstorm sessions

Participants; Marketing Materials team members Main subjects covered in the brainstorm sessions:

• Product groups • (Preferred) suppliers • Supplier selection

• Supplier performance assessment • Supplier base management process • Any other business

Open interviews

Participants; Marketing Materials team members, NPI Europe, European sourcing community. Main subjects covered in the open interviews:

• Product groups • (Preferred) suppliers • Supplier selection

• Supplier performance assessment • Supplier base management process • Any other business

Structures interviews

Participants; Marketing Materials team members

Main subjects and questions included in the structured interviews: Product groups

• Which product groups can be identified in Marketing Materials?

• On the basis of what criteria would you differentiate between product groups? • What are differences in characteristics between product groups?

• Influence specific product group on selection and evaluation criteria?

• How many suppliers in each product group, how is specific supplier market organised? (European scope).

• Spend in each product group by Unilever, which part of the total MM spend is each group? • Size Unilever orders in total market per product group?

• Preferred suppliers available? Supplier selection

• Way suppliers are selected at the moment; • Opinions

• Suggestions for improvement?

• Are there any qualifiers/selectors defined? • PAQ adaptations needed?

• Which ‘hard’ and which ‘soft’ criteria would you use? • Would you use a ranking?

Supplier evaluation

• Way suppliers are evaluated at the moment? • Opinions

• Suggestions for improvement? • SRM

• Which ‘hard’ and which ‘soft’ criteria would you use?

• Vendor rating, which scoring and ranking method would you use? How would you like to see supplier selection and evaluation organised for MM?

• What would be the ideal situation?

• Do you see a possible link between auditing and Pre-Audit questionnaire, if yes, how? • Do you see a possible link between SRM and supplier selection / evaluation, if yes how? • Is there room for an integrated process/system

• What do you think of the idea of qualifiers/selectors?

What should be the requirements for a preferred and approved supplier of MM? • Requirements

• Performance • Measures

• Differences per product group / cluster Which documents are available in the above areas?

• Documents • Procedures Comments / suggestions?

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Appendix 4: Main differences between supplier evaluation and vendor rating (Van

Weele, 1983)

ASPECTS SUPPLIER EVALUATION VENDOR RATING

Orientation Future oriented Based on historical data Applied to New / existing suppliers Existing suppliers Character Mainly qualitative Mainly quantitative

Scope Broad, many aspects considered Narrow, few aspects involved

Effort Time consuming When data are available, easy to conduct

Data processing Subjective, human factor needed Factual, may be computerized Supplier assistance Suppliers should cooperate when

collecting data

Factual data can be derived from own company records

Appendix 5: Supplier Relationship Management alignment (Trent, 2005)

RELATIONSHIP

WHAT BUYERS SHOULD DO

Longer-term business arrangements Assign individuals to manage relationships

Fair financial return Provide timely and complete supplier performance feedback

Adequate time for planning Formally assess the suppliers perception of the buyer as a customer

Accurate forecasts Emphasize trust building activities and actions Minimum change orders Involve supplier early during product planning and

development

Ethical treatment Implement SRM information systems Opportunities for early involvement during product

development

Meet with suppliers to understand supplier relationship expectations

Sharing of cost savings ideas Develop longer-term contract agreements that create mutual value

Clear material specifications and performance requirements

Smoothly timed order releases Open sharing of information Objective performance feedback Protection of intellectual property Payment in a reasonable time Efficient negotiating processes

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Appendix 6: Unilever Code of Business Principles; Business Partner Code

•

There shall be compliance with all applicable laws and regulations of the country

where operations are undertaken

•

There shall be respect for human rights, and no employee shall suffer harassment,

physical or mental punishment, or other form of abuse

•

Wages and working hours will, as a minimum, comply with all applicable wage and

hour laws, and rules and regulations, including minimum wage, overtime and

maximum hours in the country concerned

•

There shall be no use of forced or compulsory labour, and employees shall be free to

leave employment after reasonable notice

•

There shall be no use of child labour, and specifically there will be compliance with

relevant ILO standards

•

There shall be respect for the right of employees to freedom of association

Safe and healthy working conditions will be provided for all employees

•

Operations will be carried out with care for the environment and will include

compliance with all relevant legislation in the country concerned

•

All products and services will be delivered to meet the quality and safety criteria

specified in relevant contract elements, and will be safe for their intended use

• There shall be no improper advantage sought, including the payment of bribes, to

secure

delivery

of

goods

or

services

to

Unilever

companies.

Appendix 7: Product groups; old vs. new situation

Platform X

Pre-Audit

Questionnaire New

Product Client Group Product Client Group Product Group

Bags & Rucksacks Bags & Rucksacks Generalists

Ceramics Clothing Ceramics

Clothing Coolers / Cabinets Clothing

Coolers / Cabinets Electronic Devices Coolers

Electronic Devices

Give-aways /

Incentives

Displays (permanent / non-permanent)

Give-aways /

Incentives Glassware / Ceramics

Disposables (including

packaging)

Glassware / Ceramics Kitchen / Tableware Furniture

Kitchen / Tableware

Outdoor Leisure

Items Glassware

Outdoor Leisure

Items Outlet Barware Parasols

Outlet Barware Parasols & Furniture Promotional Print (PMA / PMC)

Parasols & Furniture Print Signage (interior / exterior)

Print Product Displays

Product Displays

Promotion Product

Packing

Promotion Product

Packing Signage (exterior)

Signage (exterior) Signage (interior)

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Appendix 8: Products per product group

Product Group Product Category Product Sub-Category

Ceramics

Tableware

Dishes, Bowls & Pots, Drink Mugs, Jugs, Plates

Clothing

Apparel Accessories

Belts, Gloves, Jewelry, Scarves

Footwear

Socks/Shoes

Garments

Aprons, Bathrobes, Beach & Pool Items, Dresses & Skirts, Fleece, Jackets, Jumpers/Sweaters, Ladies Tops, Polo Shirts, Rugby Shirts, Shirts, Sweatshirts, T-Shirts, Trousers & Pants

Headwear

Bandanas, Baseball Caps, Hats

Coolers

Coolers & Refrigerators

Coolers

Disposables Product packaging

Carrier bags

PVC Carrier Bags, Paper Carrier Bags, Plastic Carrier Bags, Paper Cups, Plastic Cups

Generalist

Business & Desk

Accesories

Business Card Holders, Calendars, Desktop Items, Note Pads, Travel Kits

Clocks & Watches

Watches

Food & Beverage

No subcategories

Games and Toys

Balloons, Plush / Soft Toys, Toy & Play Items

Home Products

Bathroom Accessories, Laundry Items, Tables & Chairs

Leisure & Personal

Accesories

Badges/Labels, Binoculars, Bottle Openers, CD Cases, Grooming & Beauty Items, Lanyard, Phones & Accessories, Sunglasses, Glass Cases, Travel Kits

Business & Desk

Accesories

Calculators & Data Banks, Voice Recorders

Electronic Devices

CD Players, Cameras, Fans, Flashlights, Phones & Accessories, Radios, Toy & Play Items, Travel Clocks, Wall Clocks

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Kitchenware

Containers (Food or Drink), Cooking Equipment, Dishes, Bowls & Pots, Kitchen Lighters, Serving Trays

Leisure & Personal Accessories

Barbeque Items, Sunglasses, Glass Cases, Towels

Sports Items & Games

Beach & Pool Items, Ski Equipment, Sports Balls, Toy & Play Items

Barware

Appliances: Bar, Kitchen,Vending, Bar & Counter Mats, Bar Games , Bill Holders, Cash Trays, Coasters & Drip Mats, Containers (Food or Drink), Counter Units, Drink Bottles & Holders, Ice Buckets or Crushers, Jugs, Litter Bins, Menu & Card Holders, Menu Boards, Menu Covers, Napkins & Holders, Note Pads, Plastic Cups, Price Boards & Cards, Product Presenters, Reserved Signs, Savoury Bowls, Serving Trays, Swizzle Sticks, Tea Pots, Towels, Work Tools

Tableware

Cutlery & Servers, Measuring Cups & Spoons, Plates, Table Mats

Glassware Glassware Glassware (Drinking) Parasols Parasols Promotional Print

Paper & Printed Materials

Decals & Stickers, Posters & Holders, Booklets & Leaflets, Brochures & folders Product Displays

Brand Communication

Balloons

Carton Displays (All)

Counter Units, Floor Units, Product Presenters

Metal Displays (All)

Floor Units, Product Presenters

Plastic Displays (All)

Counter Units, Shelf Strips & Dividers Wooden Displays (All)

111

Signage Signage exterior

Brand Communication

A-Frame Boards, Banners, Billboards, Bunting, Decals & Stickers, Flags, Illuminated & Static Signs, Inflatables, Lenticular & Moving Signs, Litter Bins, Metal Signs & Plates, Moulded or Formed Signs, Neon Signs, Projecting Signs, Retail Canopies, Retail Fascias, Thermometers

Signage interior

Brand Communication

Banners, Bar & Counter Mats, Cash Trays, Door Signs, Illuminated & Static Signs, Inflatables, Lenticular & Moving Signs, Menu Boards, Metal Signs & Plates, Mirrors, Moulded or Formed Signs, Neon Signs, Price Boards & Cards, Wall Clocks, Window Units

Appendix 9: Supplier selection criteria

Before starting the Pre-Audit Questionnaire please read carefully the attached documents: ‘Explanation of terms used in the Pre-Audit Questionnaire’, ‘Unilever Business Partner Code’, and ‘Product Classification’.

Please provide the following information regarding your company.

If you have already completed the Pre-Audit Questionnaire in the past, please inform us of any changes since then.

Company details Name & Entity; Street; Postal code; Town; Country; Telephone; Fax; E-mail; Website;

D&B DUNS Number; Bank account number; Date of completion;

Key contacts within your company

General Manager; name / telephone / e-mail

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Geographical scope

Please fill in the details for the countries in which you are active;

Country City Activity

(e.g. sales office, production facility, warehousing facility, agency) Contact Person Telephone E-mail

Austria (will be a blank field in E-tool) Belgium Others; all European countries will be added here as well in the definite version in E-tool.

Product range

Please indicate (in percentages of turnover) in which product categories you are active; For an explanation of the product groups, please read the attachment ‘product classification’.

Product Category Percentage of total

turnover last year Ceramics Clothing Coolers Displays Disposables Furniture Generalist Glassware Parasols Promotional Print Signage

Have you ever had business with Unilever? If yes please name the Unilever subsidiary(ies). Do you have a signed agreement in place with Unilever?

Please name your top five customers and the percentage of business you have with them and please give any contact details that can be used as a reference.

Customer name Percentage of business

last year

Contact Details (contact person, tel, website, e-mail,)

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Unilever Code of Business Principles

Before answering the statements below, please read the attached ‘Unilever Business Partner Code’. Please answer the statements below;

1. Do you ensure that your business and products comply with all applicable laws and regulations of the country where operations are undertaken? Y / N 2. Do you respect human rights, and do you ensure that no employee shall suffer harassment, physical or mental punishment, or other form of abuse? Y / N 3. Do you ensure that wages and working hours will, as a minimum, comply with all applicable

wage and hour laws, and rules and regulations, including minimum wage, overtime and

maximum hours in the country concerned? Y / N

4. Do you ensure that there is no use of forced or compulsory labour, and that employees are free to leave employment after reasonable notice? Y / N 5. Do you ensure that you do not use child labour, and specifically that there is compliance with

relevant ILO standards? Y / N

6. Do you respect the right of employees to freedom of association*? Y / N 7. Do you provide safe and healthy working conditions for all employees? Y / N 8. Do you ensure that operations are carried out with care for the environment and include

compliance with all relevant environmental legislation in the countries concerned? Y / N 9. Do you ensure that all products and services will be delivered to meet the quality and safety criteria specified in relevant contract elements, and will be safe for their intended use? Y / N 10. Do you ensure that there is no improper advantage sought, including the payment of bribes, to

secure delivery of goods or services to Unilever companies? Y / N 11. Do you select your suppliers based on compliance with all the statements above? Y / N

Financial stability

• Turnover trend over the last three years; growing / stable / declining • # of employees trend over last three years; growing / stable / declining • Profit trend over the last three years; growing / stable / declining Please fill in the following financial figures;

• Turnover figures over the last three years; ….. (in €) • Turnover figures with Unilever over the last three years;…. (in €) • Number of employees over the last three years;

• Profit pre tax figures over the last three years; ……. (in €)

Reliability of Delivery

• Do you perform track and trace of lots of finished products?; Y / N • Do you check if products comply with legislation of country of delivery?; Y / N • Do you keep track of ‘OTIF’ for deliveries?; Y / N • Do you have a production and delivery plan for every order?; Y / N

If yes, please attach an example.

Quality and Environmental Care Quality control

• Do you have an ISO 9000 certification?; Y / N If you have other important quality certifications please specify and attach here; • Do you have a documented Quality Management Process in place for all your sites?;

Y / N

If yes, please attach here.

• Do you have in place a specific defect classification process for

your products?; Y / N If yes, please attach an example here.

Quality assurance

• Do you ensure that quality checks are carried out on every delivery?; Y / N • Do you perform internal audits of all operations?; Y / N • Do you use third party audits (inspections)?; Y / N If yes, which recognized certification bodies are you working with and for which services?;

• Do you have a professional indemnity insurance?; Y / N If yes, please indicate the value of the insured risk. Please also indicate if it is per annum or per event.

• Do you have a complaint/feedback handling process in place with your customers?; Y / N

Environmental care

• Do you have an ISO 14001 certification?; Y / N If you have other important environmental certifications please specify and attach here;

• Does your company pursue a waste management policy?; Y / N / Not applicable If yes, please attach.

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Appendix 10: Vendor rating criteria

Vendor rating

Please rate on a scale from 1 to 5. 5 is the highest possible performance, 1 is the lowest possible performance.

General information Supplier name;

Project description (including product name and specifications, order number); Responsible Supply Manager;

Your name; Date of evaluation;

Qualifier

Did the supplier comply with the Unilever Business Partner Code during this project? Y / N

Financial

• Did you get the expected value for money during this project? Reliability of delivery

• Did the supplier deliver the products OTIF for all orders/deliveries?

• Is the supplier flexible regarding delivery in batches (i.e. delivery on demand is in place)?

Quality

Quality control

• Is the quality of delivery according to agreed specifications and agreements? Quality assurance

• Did you receive a quality certificate as proof that quality was checked on every delivery? Y / N

Responsiveness

• Did the supplier respond to your questions on time?

• Did the supplier do what has been agreed (did supplier keep his promises)? • Is a single point of contact for your company available? Y / N

• Is the supplier capable to develop solutions for non-standard applications and/or requests?

• Did the supplier collaborate in solving problems?

• Did the supplier act proactively and independently in this project? Sum up

• Would you buy again from this supplier? Y / N

• Please express one weakness point of this supplier; open text field • Please express one strength point of this supplier; open text field Please type any other feedback / comments you would like to add in the field below.

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Appendix 11: Scoring approach Pre-Audit Questionnaire

Scoring approach Pre-Audit Questionnaire

Category weight Category Max score Result on PAQ Weighted scores Max score

Financial stability 0,1 Criterion 1 33,33 Criterion 2 33,33 Criterion 3 33,33 max 100 0 0 10 Reliability of delivery 0,27 Criterion 1 20 Criterion 2 20 Criterion 3 20 Criterion 4 20 Criterion 5 20 max 100 0 0 27

Quality and Environmental Care

0,58 Criterion 1 9,1 Criterion 2 9,1 Criterion 3 9,1 Criterion 4 9,1 Criterion 5 9,1 Criterion 6 9,1 Criterion 7 9,1 Criterion 8 9,1 Criterion 9 9,1 Criterion 10 9,1 Criterion 11 9,1 max 100 0 0 58 Innovation 0,05 Criterion 1 50 Criterion 2 50 max 100 0 0 5 totals 1 0

Appendix 12: Scoring approach vendor rating

Scoring approach Vendor rating

Category weight Category Max score Result Weighted scores Max score

Financial 0,07Criterion 1 100 max 100 7 Reliability of delivery 0,27Criterion 1 50 Criterion 2 50 max 100 27 Quality 0,33Criterion 1 50 Criterion 2 20 Criterion 3 30 max 100 33 Responsiveness 0,2Criterion 1 20 Criterion 2 20 Criterion 3 15 Criterion 4 15 Criterion 5 15 Criterion 6 15 max 100 20 Sum up 0,13Criterion 1 100 max 100 13 totals 1