THE INDUSTRY GUIDE TO SUSTAINABLE OPERATION

7 7.1
PURCHASING AND
SUPPLY CHAINS
T H E ISSUE S 1

7.2 W H Y INTR O D UC E SUSTAINABLE

S U P P LY C HAIN MANAGE ME NT? 2

7.3 P R I NC IP LE S O F RE SP O NSIBLE
P U R C HASING 3

7.3.1 Key principles 3

7.3.2 Life cycle analysis 3
7.3.3 Life cycle costing 5
7.3.4 Other aspects to consider 5
7.3.5 Ecolabels and certification schemes 6

7.4 I M P LE ME NTING R E SP O NSIBLE

P U R C HASING IN Y O UR HO TE L 6

7.4.1 Where to start 6

7.4.2 Commitment and awareness 6
7.4.3 Developing a supply chain policy 7
7.4.4 Establishing a management system 7
7.4.5 Consulting with and assessing your
suppliers 7
7.4.6 Defining your work programme 8
7.4.7 Monitoring and reporting on
progress 8
7.4.8 Helping suppliers meet your goals 8
7.4.9 Incorporating the policy into
contracts 10

7.5 T I P S FO R SUC C E SS 11

7.6 M O RE INFO RMATIO N 12

7.6.1 Contacts 12
7.6.2 Resources 12

A P P E N D I CE S

1 Furniture, fixtures and fittings (FFF) 13

2 Sourcing organic food and drink products 16

First published 1993 | Third edition 2008 | Digital Release 2014

© International Tourism Partnership 1993, 1996, 2008, 2014 all rights reserved.
This work is licensed under a Creative Commons Attribution-Non-Commercial-NoDerivs 3.0 Unported Licence.
This manual was published in 2014 when Sustainable Hospitality Alliance
was known as International Tourism Partnership (ITP), part of Business in
the Community (BITC).
 ENVIRONMENTAL MANAGEMENT
PU R C HA SI NG AND SU PPLY C HA I NS
FOR HOTELS

7
Orwin Dillon
is one of the
farmers involved
in The Travel
Foundation's
Adopt A Farmer
programme
in Tobago,
supplying local
produce to hotels
such as the
Hilton Tobago

7
PURCHASING AND SUPPLY
CHAINS
This section examines why it is important to consider environmental
and sustainability issues as part of all your purchasing decisions
and how to put in place a programme for sustainable supply chain
management.

7.1 THE ISSUES

Twenty-five years ago when we purchased products or services we gave little thought
to what effect our decision would have on the planet or the lives of people who
populate it. The only criteria were whether what we were buying was ‘fit for purpose’
and issues such as quality, effectiveness, value for money, design and product
lifespan. These considerations are still as important as ever, but now the process
is complicated by the fact that because environmental and socio-economic issues

WHY INTRODUCE PRINCIPLES OF IMPLEMENTING

THE ISSUES SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
RESPONSIBLE
PURCHASING
RESPONSIBLE PURCHASING
IN YOUR HOTEL
TIPS FOR SUCCESS MORE INFORMATION APPENDICES 1
© INTERNATIONAL TOURISM PARTNERSHIP, 2008
 ENVIRONMENTAL MANAGEMENT
PU R C HA SI NG AND SU PPLY C HA I NS

feature more and more in our lives, we have a moral and ethical obligation to factor
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7
them into our decisions about what we buy.

A sustainable procurement policy is a key part of managing the direct environmental

effects of your hotel. You will also be helping to influence the environmental
behaviour of your suppliers which will, in turn, help to shape a more sustainable way
of life for everyone. Hotels everywhere rely on suppliers of goods and services in
order to satisfy the needs and desires of their guests. The process involves millions
of individuals and businesses all acting as links in a ‘chain’ to provide their customers
with what they need, the ultimate customer being the end-user. The introduction of
responsible purchasing practices into the supply chain is known as sustainable supply
chain management (SSCM).

Hotel accommodation is itself a link in the overall tourism supply chain. This chain
includes advertising, sales and marketing, airlines, trains and coaches, ground
transport and handling, excursions and attractions, cultural events, suppliers of crafts,
catering, food and furniture – to name a few. In recent years tour operators have
also embraced SSCM. This means that the hotels that supply tour operators with
accommodation will themselves increasingly be subject to SSCM criteria.

Initially, some of your suppliers may be concerned that your supply chain management
programme may impact negatively on their bottom line. However, in many (if not
most) cases, sustainable initiatives driven by customers have a positive financial
effect on suppliers too, particularly through resource and packaging savings and the
creation of less waste.

7.2 WHY IN TROD UC E SUSTAI N AB L E

SUPPLY CHAI N M AN AG EM EN T?
Selecting products and services on the basis of the lowest cost provider is not
necessarily in the best long-term interest of your enterprise. There are numerous
benefits to hotels in introducing a responsible purchasing strategy:

a As a key part of the tourism supply chain, hotels will come under increasing
pressure from tour operators and individual customers to practice sustainable
procurement policies.

b The potential for lower operating costs through more efficient use of energy and
water resources and reduced waste disposal costs.

c Reduction of risk by avoiding suppliers with a doubtful track record on

environmental and social issues.

d The formation of better relationships with suppliers which will encourage their
continued loyalty and service.

e Increased security of supply of the goods or service through the ability to

negotiate long term contracts and a better negotiating position (i.e. increased
purchasing power).

f A better relationship with the community whose economy you are supporting
by purchasing locally.

WHY INTRODUCE PRINCIPLES OF IMPLEMENTING

THE ISSUES SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
RESPONSIBLE
PURCHASING
RESPONSIBLE PURCHASING
IN YOUR HOTEL
TIPS FOR SUCCESS MORE INFORMATION APPENDICES 2
© INTERNATIONAL TOURISM PARTNERSHIP, 2008
 g
ENVIRONMENTAL MANAGEMENT
PU R C HA SI NG AND SU PPLY C HA I NS

You will be helping to create a stronger destination with a more authentic ‘local’
FOR HOTELS

7
atmosphere by supporting local workers and keeping traditions alive.

h It will help enhance your reputation and improve customer loyalty – creating a
market advantage for new and repeat business.

i You will be able to demonstrate to all your stakeholders the importance you
place on sustainability issues.

7.3 PRIN CIPLE S O F R ESPO N SI B L E

PURCHASING
7.3.1 Key principles
The essential principles that you will need to follow in order to practise more sustainable supply
chain management are to:

a Reduce consumption and buy only what you really need.

b Source products and services locally wherever possible to encourage local business and
craftspeople, create ‘authenticity’ and cut down on the energy used for transport and
distribution.

c Purchase products with less environmental impact in their manufacture, use and disposal.

d Buy products in bulk to reduce the amount of packaging and the energy used for deliveries
– the product is also likely to cost less too.

e Reduce, reuse and recycle packaging. By ‘pre-cycling’, i.e. giving preference to responsible
products with less packaging, you simplify your own recycling and disposal operations and
reduce the amount and toxicity of the waste you have to dispose of.

f Work with growers and suppliers locally to overcome the necessity to import, and where
imports are essential import ‘fair trade’ products.

g Ensure that all suppliers adhere to safe and ethical working practices.

7.3.2 Life cycle analysis

You can build up a detailed picture of the environmental impact of the products you purchase
by asking questions relating to each stage of the product's life cycle from 'cradle' to 'grave'.
This enables you to find out what environmental impacts arise from extracting the raw materials,
manufacturing the product, transporting it, using it and disposing of it. The simple life cycle
assessment checklist in FIGURE 7.1 shows the main points to raise with suppliers across each of
these stages and will help you form a view as to where the key impacts lie for a given product.
You can adapt it to suit your particular situation or the products that you wish to compare. Work
through the questions relating to each stage of the life cycle and use the right hand columns to
tick the answers and note any specific issues that are of concern. When you have completed the
questionnaire, count the number of ticks that appear in the shaded boxes. Products with the
greatest number of ticks in the shaded boxes satisfy the greatest number of environmental and
sustainability criteria.

WHY INTRODUCE PRINCIPLES OF IMPLEMENTING

THE ISSUES SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
RESPONSIBLE
PURCHASING
RESPONSIBLE PURCHASING
IN YOUR HOTEL
TIPS FOR SUCCESS MORE INFORMATION APPENDICES 3
© INTERNATIONAL TOURISM PARTNERSHIP, 2008
PRODUCT: MANUFACTURER:
ENVIRONMENTAL MANAGEMENT
PU R C HA SI NG AND SU PPLY C HA I NS
FOR HOTELS

7
Stage of Questions to ask about life cycle issues Tick as applicable Problems
life cycle No Yes N/A identified

Do any of the raw materials involve environmentally sensitive issues? FIGURE 7.1
RAW MATERIALS

If so, have appropriate measures been taken to minimise environmental

problems? Checklist for
comparing life
Do they damage the local environment when they are extracted? cycle impacts
between
Does extraction require a high energy input? products
Are long distances involved in transporting raw materials or inefficient modes
of transport of materials involved? (e.g. road or air versus train)
Does the product contain any recycled or post-consumer waste?
Were any exploitative practices such as child labour or poor rights/safety for
workers involved?

Does the manufacturer have an environmental policy and programme in place?

Does the manufacturing process involve high energy input?

Is current, energy-efficient equipment in use?

If waste is produced, have efforts been made to reduce it?

If the generation of liquid effluent is involved, is the supplier working to
MANUFACTURE

reduce this?
Are solvents, glues, chemicals, varnishes, paints or other finishes (e.g.
chrome) used that are toxic or pollute the air?
Are any heavy metals released during manufacture?
If refrigerants (e.g. CFCs, HCFCs, HCs) are used are they the least
environmentally damaging?
Is waste or effluent recovered for re-use in the process or for recycling?
Are any exploitative practices such as child labour or poor rights/safety for
workers involved?
Does the manufacturer offset the carbon emissions created during production?
Does the product carry an ecolabel or other guarantee that it has been
responsibly produced?
Will the product have to travel a long distance from the manufacturer/supplier
TRANSPORT

to the hotel?
DELIVERY

Is the most efficient mode of transport being used over this distance?
AND

Are any hazards created during transport?

Have efforts been made to minimise packaging?

Will the supplier collect used packaging to re-use/recycle?

Does the product have a good energy efficiency rating?

Does it minimise water consumption?

USE

Does it have a negative effect on indoor air quality?

Will replacement parts have to travel a long distance?

Will it give long service before it needs replacing?

Does the product pose a threat to the environment at the end of its useful life?
REUSE AND
RECYCLING
DISPOSAL,

Are there any special requirements for safe disposal that you doubt can be
properly met?
Can you re-use all, most, or some of the material or components?

Can you recycle all, most, or some of the material or components?

Is it possible to return the product to the supplier for recycling or reuse?

ADD TO GIVE
TOTALS NUMBER OF SHADED BOXES TICKED OUT OF 34: GRAND TOTAL

WHY INTRODUCE PRINCIPLES OF IMPLEMENTING

THE ISSUES SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
RESPONSIBLE
PURCHASING
RESPONSIBLE PURCHASING
IN YOUR HOTEL
TIPS FOR SUCCESS MORE INFORMATION APPENDICES 4
© INTERNATIONAL TOURISM PARTNERSHIP, 2008
 ENVIRONMENTAL MANAGEMENT
PU R C HA SI NG AND SU PPLY C HA I NS
FOR HOTELS

7
7.3.3 Life cycle costing
Life cycle costing takes into account the total costs of a purchase decision, not just the initial
price. It considers:

● the initial purchase/commission cost

● the running costs

● the maintenance costs

● the ultimate disposal costs.

This approach will enable you to compare the true cost of different products. It also means that
products with a lower environmental impact are not rejected early on simply because the initial
price is higher.

7.3.4 Other aspects to consider

The following considerations also need to be borne in mind when making purchasing decisions
to support your responsible purchasing principles:

a QUALITY

Buy the highest quality you can afford and have items repaired and serviced when necessary.
Whether the products are linens, uniforms, office equipment, furniture and fixtures or
operating equipment, this is often more economically sound in the long run and reduces
use of materials and the creation of waste.

b SIMPLICITY

This applies to both food and equipment. The more refined or processed the food, the more
energy it takes to produce it. Some models of office equipment and appliances come with
more extras than you really need, making them more expensive and unnecessary.

c ENERGY-EFFICIENCY

Energy-efficient appliances, lamps and air-conditioners for example may cost more initially
but will save the hotel money in the long term. Always ask your supplier for the energy
efficiency rating of the equipment you are purchasing.

d RECYCLED OR RECYCLABLE PRODUCTS

When possible, buy products made from recycled materials or which are themselves
recyclable.

e CONSIDER RENTING INSTEAD OF BUYING

It is not always necessary to purchase items that are used only once or twice a year. Certain
tools such as chain saws, marquees and portable dance floors are all things that can be hired
from other companies. However, you need to be confident that the hire company will be
able to deliver if it is a busy time of year and demand is high.

f ENCOURAGE IMPROVEMENT

If you are avoiding a product or service because of its negative environmental impact,
write to the company and urge them to improve or develop an environmentally preferable
alternative.

g BEWARE EXAGGERATED CLAIMS BY SUPPLIERS

Make sure that something sold as 'environmentally friendly' is genuinely better for the
environment. Look beyond the claims to assess whether the product or service lives up to
how it is being promoted.

WHY INTRODUCE PRINCIPLES OF IMPLEMENTING

THE ISSUES SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
RESPONSIBLE
PURCHASING
RESPONSIBLE PURCHASING
IN YOUR HOTEL
TIPS FOR SUCCESS MORE INFORMATION APPENDICES 5
© INTERNATIONAL TOURISM PARTNERSHIP, 2008
 h
ENVIRONMENTAL MANAGEMENT
PU R C HA SI NG AND SU PPLY C HA I NS

FAVOUR PRODUCTS WITH AN INDEPENDENT ENVIRONMENTAL CERTIFICATION

FOR HOTELS

7
Look for independent endorsement that the product is sustainably produced. There are
many ‘ecolabels’ to help guide you which have tested and compared the product against
alternatives in the market. SEE FIGURE 7.2

i AVOID ‘DISPOSABLE’ PRODUCTS

Items sold as 'disposable' can be thrown away, but they don't disappear. Unless they are
biodegradable or can be recycled at the end of their life they only add to the accumulation in
landfills. There are environmentally preferable alternatives to virtually all disposable purchases.

7.3.5 Ecolabels and certification schemes

SECTION 4 APPENDIX 1 lists products that are commonly purchased (and disposed of) in hotels.
You will also find a list of typical furniture, fixtures and fittings in APPENDIX 1 of this section. You
will need to draw up your own list according to what you buy at your hotel including potentially
hazardous materials, such as dry-cleaning fluids, de-scaling chemicals and swimming pool
chemicals.

Once you have established a full list of products that you purchase, you will be able to identify
the life cycle impacts for each one and any remedial action that needs to be taken. In some
cases this may require long-term financial commitment, so the results of your product analysis
will need to be fed into your long-term budgeting.

7.4 IMPLEMEN TIN G R ESPO N SI B L E

PURCHASIN G I N Y O UR H O TEL

7.4.1 Where to start

Supply chain management should become part of your hotel’s philosophy and policy and
should underpin its responsible business objectives. You will need to:

● have a clear sense of what you want to achieve

● motivate staff so they are behind it

● evaluate your suppliers against your policy on a continuous basis

● set priorities and act on the policy by integrating it into your procurement activities.

7.4.2 Commitment and awareness

a Assemble a team of people from all relevant departments, particularly staff responsible for
purchasing and restocking. You might invite key suppliers to participate in the policy and
planning stages.

b Communicate your aims and objectives in order to achieve ‘buy in’ and engagement from
all staff and management.

c Appoint a member of staff who will act as the co-ordinator for the programme.

d Determine whether external stakeholders should be involved – for example local authorities
in charge of waste collection and disposal.

WHY INTRODUCE PRINCIPLES OF IMPLEMENTING

THE ISSUES SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
RESPONSIBLE
PURCHASING
RESPONSIBLE PURCHASING
IN YOUR HOTEL
TIPS FOR SUCCESS MORE INFORMATION APPENDICES 6
© INTERNATIONAL TOURISM PARTNERSHIP, 2008
 ENVIRONMENTAL MANAGEMENT
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FOR HOTELS

7
7.4.3 Developing a supply chain policy
a Develop a policy statement that explains your vision and can be understood by suppliers
and staff. Prioritise it into the issues that are most important for your hotel.

b Discuss the policy with staff and invite their input for how best to implement it throughout
the business.

c Draw up a list of all the goods and services that your hotel buys in.

d Identify opportunities to improve the sustainability of these goods and services. If you are
unsure about how to do this, consult with suppliers and/or similar companies who may have
been through the same process.

7.4.4 Establishing a management system

a Develop strategic goals to aim for so you can integrate the programme into your
business.

b Agree on the targets you wish to achieve, linking them to your policy. These should be
realistic, specific, measurable, achievable and have a specific deadline by which they are to
be met.

c Select a sample of suppliers for assessment (based on categories such as type/spend/

scope for improvement/risk etc.).

d Prioritise the list into areas and timeframes so that you can split the programme into
manageable sections.

e Establish standards against which you can evaluate suppliers. You should identify a
minimum level of acceptable performance and the level you wish suppliers to attain. Bear in
mind the different kinds of supplier involved and your local conditions.

f Set up a database so that information can be accessed internally and used easily by
all team members. This might need to be integrated with existing databases such as
environmental, health and safety (EHS) or purchasing systems.

7.4.5 Consulting with and assessing your suppliers

a Explain the policy and what you are aiming to achieve to your suppliers. Visit them and let
them visit you. Use face-to-face meetings, briefing sessions and workshops rather than
sending impersonal letters or emails. Your commitment to the programme will be judged by
the effort you put into it.

b Establish levels of awareness among suppliers of the environmental and socio-economic

issues relating to their products and services, including challenges, threats and opportunities
for success.

c If you are compiling a questionnaire for suppliers you need to think carefully about what you
want to achieve so that you can ask the right questions of your suppliers and not overload
them with information gathering.

d Be clear with them about the information you require and also how you intend to use it.

e Conduct an assessment of your suppliers, taking into account:

● qualitative performance aspects (via for example a simple survey requiring yes/no
responses or on a sliding scale of values (say -5 for poor and +5 for good)

● quantitive data on resource consumption and waste generation etc.

WHY INTRODUCE PRINCIPLES OF IMPLEMENTING

THE ISSUES SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
RESPONSIBLE
PURCHASING
RESPONSIBLE PURCHASING
IN YOUR HOTEL
TIPS FOR SUCCESS MORE INFORMATION APPENDICES 7
© INTERNATIONAL TOURISM PARTNERSHIP, 2008
 f
ENVIRONMENTAL MANAGEMENT
PU R C HA SI NG AND SU PPLY C HA I NS

Evaluate the information you have collected and establish which of the suppliers are
FOR HOTELS

7
significant in terms of having above or below average performance in relation to your
standards.

g If a supplier does not meet your criteria, ask whether they can supply a suitable alternative
product or modify their service at a similar cost.

h Find out how your suppliers select their suppliers so that you can examine further along the
supply chain and help them develop a fully sustainable supply chain in the future.

7.4.6 Defining your work programme

a You will need to draw up a programme of work based on the results of the supplier
assessments (SEE FIGURE 7.2). This should include:

● a timetable

● a budget

● an estimate of the influence on the company

● details of who is responsible for what.

b Prioritise the action plan to focus on specific groups of suppliers (such as those that have the
greatest impacts based on your assessments).

c You might want to concentrate first on the things that are easiest to change and/or which
are without cost.

7.4.7 Monitoring and reporting on progress

a Define the indicators you will use to monitor the performance of your suppliers against the
standards you have set.

b Meet regularly with suppliers to assess progress and anticipate problems.

c Communicate results internally, recognising everyone’s input in order to maintain

awareness, motivation and commitment.

d If you are reporting publicly through a sustainability report or within your annual report,
communicate the results to your suppliers first.

e Your system should enable you to assess suppliers’ sustainability performance. This could be
achieved through members of the team making a special visit to audit progress.

7.4.8 Helping suppliers meet your goals

a Maintain awareness by encouraging and communicating feedback to and from suppliers.

b Provide information so that suppliers can develop their own internal communications.

c Partner with external organisations such as local or regional business associations and training
institutes that may be able to reinforce your efforts through their own programmes.

d Assess whether any suppliers require technical support or advice on relevant legislation
and set targets for improvement.

e Identify with them any actions and solutions that may be appropriate. This might include
facilitating in-house workshops or identifying external specialists who can provide further
education and training.

WHY INTRODUCE PRINCIPLES OF IMPLEMENTING

THE ISSUES SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
RESPONSIBLE
PURCHASING
RESPONSIBLE PURCHASING
IN YOUR HOTEL
TIPS FOR SUCCESS MORE INFORMATION APPENDICES 8
© INTERNATIONAL TOURISM PARTNERSHIP, 2008
 THE ISSUES
WHY INTRODUCE
SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
Supplier Company Meets Action Person Date Follow up
By when? Target date Cost
type name criteria? required responsible achieved required

PURCHASING
RESPONSIBLE
PRINCIPLES OF
Cleaning Ecofriendly Good Work with 20/12/15 Pedro Perez 14/12/07 Further staff 14/2/15 USD 600.00 FIGURE 7.2
Cleaning supplier to reduce training in two
chemicals Chemical Corp quantities required. months’ time Example of a
simple supplier
Install automatic
action plan
dosing equipment

IMPLEMENTING

IN YOUR HOTEL
Cleaning Poor Investigate 18/10/15 John Smith 18/10/15 Cannot modify 23/11/15 nil
Chemical whether they can formulation.
Solutions supply alternative
Investigate

RESPONSIBLE PURCHASING
floor cleaner or
modify formulation alternative
suppliers

TIPS FOR SUCCESS

ENVIRONMENTAL MANAGEMENT
FOR

MORE INFORMATION
PU R C HA SI NG AND SU PPLY C HA I NS
HOTELS

APPENDICES

© INTERNATIONAL TOURISM PARTNERSHIP, 2008

7

9
 f
ENVIRONMENTAL MANAGEMENT
PU R C HA SI NG AND SU PPLY C HA I NS
FOR

In encouraging small local businesses, make sure you understand the issues that stand in
HOTELS

7
the way of their success. For example, small, start-up enterprises may not have working
capital and may need paying in cash on delivery. They may not have proper access to
customers to help their business develop and may need help to promote their services or
showcase their products to customers.

g Recognise and reward suppliers for their sustainability improvements in order to maintain
momentum and support for your programme. This can include creating incentives such as:

● special events for suppliers where the better performers are showcased to inspire
others

● making the best performers your preferred choice when contracting

● giving additional promotion to suppliers that have made significant improvement

● longer-term contracts offering them greater security.

7.4.9 Incorporating the policy into contracts

a The ultimate aim is to integrate sustainability criteria into your purchasing and contracting
procedures to support your overall sustainability objectives.

b Agree on the internal approach and procedures required for drafting clauses in contracts,
ensuring that all legal considerations are properly covered. It may be necessary to train your
staff on contracting procedures for sustainability issues.

c In rewriting contracts to address sustainability issues, set minimum baseline requirements

that all suppliers must comply with (such as having their own policy for socio-economic and
environmental issues).

d Set additional milestones that suppliers can aspire to which are realistic and achievable.
Link their achievement into incentives such as those outlined in 7.4.8.

e Incorporate supplier sustainability issues into your existing supplier review process.

f Agree on the mechanisms to be used when suppliers fail to meet requirements. Depending
on the seriousness of the issue, these may range from identifying additional technical support
to the suspension of their contract.

g If you do have to suspend a supplier, revisit the situation in a few months’ time to see
whether they have taken corrective action.

h Allocate responsibilities for updating standards, support materials and databases and co-
ordinating training for suppliers and staff. You will also need to identify the individuals
responsible for co-ordinating the monitoring, auditing and verification processes and
providing progress reports.

WHY INTRODUCE PRINCIPLES OF IMPLEMENTING

THE ISSUES SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
RESPONSIBLE
PURCHASING
RESPONSIBLE PURCHASING
IN YOUR HOTEL
TIPS FOR SUCCESS MORE INFORMATION APPENDICES 10
© INTERNATIONAL TOURISM PARTNERSHIP, 2008
 ENVIRONMENTAL MANAGEMENT
PU R C HA SI NG AND SU PPLY C HA I NS
FOR HOTELS

7
7.5 TIPS FOR SUCCESS
● Communication is the key to success. Be regular, clear, straightforward, fair
and transparent in your communications both with suppliers and internally.

● Ensure that your policy is reflected in your purchasing decisions or it will

undermine the credibility of your programme.

● Aim for an inclusive rather than exclusive approach – i.e. do not just stop using
suppliers who do not meet your standards, but try to help them comply with
your requirements and ultimately raise sustainability levels throughout the supply
chain.

● Do not be over-ambitious. Work with a few suppliers at a time to achieve

continuous and measurable improvement over time rather than overnight
transformation.

● Remember that you may be able to learn as much (if not more) from your suppliers
about sustainability as you are able to tell them.

● Listen to your suppliers and be prepared to work with them to help them
improve over time. They may have different priorities and/or capacities for
improvement and may not be able to improve at the same rate.

● When you are trying out new suppliers, ensure that they will be able to meet any
specifications and deadlines you may have.

● If you are using certification schemes as a means of identifying sustainable

suppliers, check that the standards and criteria of the scheme is in line with the
objectives of your supplier policy.

● Ensure that any sensitive or confidential material in your supplier database

remains confidential.

● Where too few suppliers are able to meet your minimum requirements, consider
working with other hotels and tourism associations in the area to help raise
overall standards within the destination and to create a greater pool of suppliers
to draw upon.

● Monitor the response and enthusiasm of suppliers and identify successes and
difficulties so that each year you can improve the process.

WHY INTRODUCE PRINCIPLES OF IMPLEMENTING

THE ISSUES SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
RESPONSIBLE
PURCHASING
RESPONSIBLE PURCHASING
IN YOUR HOTEL
TIPS FOR SUCCESS MORE INFORMATION APPENDICES 11
© INTERNATIONAL TOURISM PARTNERSHIP, 2008
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7
7.6 MORE INFORMATION
7.6.1 Contacts
1. Oxford Brookes University – Centre for 4. Tour Operators Initiative for Sustainable Tourism
Environmental Studies in the Hospitality Industry Development (TOI)
(CESHI) www.toinitiative.org
http://hospitality.brookes.ac.uk
5. US Environmental Protection Agency
2. International Centre for Responsible Tourism www.epa.gov
www.icrtourism.org
6. US Green Building Council
3. International Labour Organization www.usgbc.org
www.ilo.org

7.6.2 Resources
1. A Practical Guide to Good Practice: Managing 10. Making Tourism Count for the Local Economy in
Environmental and Social Issues in the Dominican Republic: Ideas for Good Practice
Accommodations Sector www.odi.org.uk/sites/odi.org.uk/files/odi-assets/
www.toinitiative.org/index.php?id=146 publications-opinion-files/1945.pdf

2. EcoBusinessLinks: Environmental Directory 11. Supply Chain Engagement for Tour Operators –
www.ecobusinesslinks.com Three Steps Toward Sustainability
www.toinitiative.org/index.php?id=145
3. Ecospecifier
www.ecospecifier.org 12. Green Hotelier Know How Guides
www.greenhotelier.org/category/know-how-
4. Ethical superstore guides/
www.ethicalsuperstore.com
13. International Tourism Partnership, Sustainable
5. Good Environmental Choice Products Register Supply Chains 2006
www.aela.org.au/ProductsRegister.htm www.greenbiz.com/sites/default/files/document/
CustomO16C45F69314.pdf
6. Greener Choices Ecolabels Center
www.greenerchoices.org/eco-labels/eco-home. 14. Working with Suppliers for Sustainable
cfm?redirect=1 Development - Tour operator practices and
recommendations
7. Considerate Hoteliers
www.fto.co.uk/responsible-tourism/sustainability-
www.consideratehoteliers.com
guidelines/
8. Green Travel Market
www.greentravelmarket.info

9. US Green Building Council – Leadership in Energy

and Environmental Design (LEED) Rating System
For Commercial Interiors
www.usgbc.org

WHY INTRODUCE PRINCIPLES OF IMPLEMENTING

THE ISSUES SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
RESPONSIBLE
PURCHASING
RESPONSIBLE PURCHASING
IN YOUR HOTEL
TIPS FOR SUCCESS MORE INFORMATION APPENDICES 12
© INTERNATIONAL TOURISM PARTNERSHIP, 2008
 ENVIRONMENTAL MANAGEMENT for HOTELS

PU R C HA SI NG AND SU PPLY C HA I NS
7
A P P E NDI X 1 Furniture, fixtures and fittings (FFF)

The term furniture, fixtures and fittings (FFF) refers to the thousands of items purchased to fit
out hotels – prior to opening, during refurbishment or simply as part of the ongoing operation.
It does not include consumable items such as food and drink, newspapers or guest amenities.

W H AT A R E T H E I S S U E S ?
All furniture, fixtures and fittings have socio-economic and environmental impacts associated
with their manufacture, use and disposal. By considering these issues as part of the purchasing
process, you can greatly reduce your overall environmental impact and make a positive
contribution to sustainability.

Issues to consider throughout the product’s life cycle may include some or even all of the
following, where applicable:

●● whether the raw materials are responsible for any negative environmental effects

●● that the manufacturer makes every effort to be resource-efficient in the use of energy and
water and reduction of waste

●● that the manufacturing process does not involve any human rights injustices

●● that no toxic or otherwise harmful or polluting substances are involved either during
manufacture or which could affect indoor air quality during the product’s life

●● that the manufacturer employs from the local community to develop skills and retain
traditional techniques and underpin the local economy

●● that the manufacture offsets their CO2 emissions through a reputable carbon offsetting
organisation

●● that as few miles as possible will be involved in delivering it from its place of manufacture to
the point of use, using the most efficient method of transport

●● that the product is as water and waste efficient as possible during use

●● that it carries a recognised ecolabel

●● that the product’s components can be recycled at the end of its useful life.

FIGURE 7.3 overleaf lists typical FFF items purchased by hotels and some of the criteria you can
apply in order to source more sustainable products.

WHY INTRODUCE PRINCIPLES OF IMPLEMENTING

THE ISSUES SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
RESPONSIBLE
PURCHASING
RESPONSIBLE PURCHASING
IN YOUR HOTEL
TIPS FOR SUCCESS MORE INFORMATION APPENDICES 13
© INTERNATIONAL TOURISM PARTNERSHIP, 2008
 ENVIRONMENTAL MANAGEMENT for HOTELS

PU R C HA SI NG AND SU PPLY C HA I NS
7
A P P E N DIX 1
.../continued

Item Key criteria to apply

Art and decorative items Support local artists and craftspeople by purchasing and/or displaying their work for sale FIGURE 7.3
Baths, basins and WCs Low impact in manufacture, low water consumption in use Typical
FFF items
Boilers and HVAC equipment Aim for the highest energy efficiency rating possible. Only use models with the least environmentally purchased by
damaging refrigerants (see Refrigeration equipment) hotels

Carpets (natural) and woven Use natural wool or at least 80 per cent minimum wool content. Source as locally as possible. Even
floor coverings international companies are now working with local artisans to help develop sustainable communities.
Coir, jute, seagrass and sisal are alternatives for certain areas and are biodegradable

Carpets and carpet tiles Look for recycled content and suppliers that will take back and recycle the carpet at the end of its life
(synthetic)
Front office Should be made with local materials and labour if possible

Electrical equipment Aim for the highest energy efficiency rating possible
e.g. hairdryers, vacuum cleaners, irons,
kitchen and office equipment etc.

Electronic equipment Ensure that the supplier will take back for recycling at end of use. Ask for models that have energy-
e.g. computers, TVs, mobile phones saving modes and use rechargeable batteries

Fabrics and linens Use organic cotton and other natural fibres that do not involve use of pesticides; look for good
employment and community practices by manufacturer. Stain-resisting and fireproofing finishes must
have minimal impact on indoor air quality

Faucets (taps), showerheads Avoid chrome plating if possible as it is a toxic process (see metal items)
and other bath fittings
Floor coverings (non-woven) Choose natural, breathable coverings that involve minimal use of glues and solvents and which
minimise energy and water use in manufacture. Natural cork, linoleum, bamboo and reclaimed
wood tend to have lower environmental impacts. Flooring made of recycled rubber tyres is another
alternative

Floor coverings (quarried Quarries are very energy-intensive. Either source natural stone, slate etc from local quarries or import
products) from companies known to operate an ethical policy

CONTINUED/...

WHY INTRODUCE PRINCIPLES OF IMPLEMENTING

THE ISSUES SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
RESPONSIBLE
PURCHASING
RESPONSIBLE PURCHASING
IN YOUR HOTEL
TIPS FOR SUCCESS MORE INFORMATION APPENDICES 14
© INTERNATIONAL TOURISM PARTNERSHIP, 2008
 ENVIRONMENTAL MANAGEMENT for HOTELS

PU R C HA SI NG AND SU PPLY C HA I NS
7
APPENDIX 1
.../continued

Item Key criteria to apply

Garden ornaments, Avoid planters made from lead. There are many different types of ‘faux’ lead planters made from
pots and tubs fibreclay (a mix of clay and other natural materials). Try to select ornaments, urns and pots that are
made locally

Kitchen and food preparation Select products with the highest efficiency ratings for energy and water consumption
equipment
e.g. ovens, hobs, microwave ovens,
toasters, fat fryers, extractor fans,
dishwashers, food processors, hot
trolleys, waste disposal units

Light bulbs (lamps) Use compact fluorescent lamps in place of incandescent versions and new LED alternatives to dichroic
lamps. Dispose of broken lamps carefully (SEE SECTION 8.5)

Light fittings Give preference to products using wood from sustainable sources or other natural materials in
preference to metal

Metal items Ensure that manufacturing processes are clean and minimise air emissions and water pollution. Avoid
e.g. radiators, door and window handles metals involving cadmium or cyanide-based plating, especially zinc, copper, brass, bronze and silver
and fittings plating, chromium plating and lead and lead-tin plating if possible.

Paints and varnishes Purchase water-based products with low or no emissions of volatile organic compounds (VOCs) in
preference to oil-based paints, and select products which have been coated using the above

Plastic items Look for products made with recycled content. Ask if they can be recycled after use
e.g. waste bins, furniture

Refrigeration equipment Look for a high energy efficiency rating and the latest, least environmentally damaging refrigerants
e.g. chilled, frozen and ambient storage (SEE SECTION 5)
and ice-making machines

Upholstered items See Wooden items and Fabrics and linens. Avoid foam products where chlorofluorocarbons (CFCs),
e.g. sofas, padded chairs hydrochlorofluorocarbons (HCFCs), hydrofluorocarbons (HFCs), or methylene chloride have been used
as blowing agents

Wallcoverings Source breathable (i.e. not vinyl or PVC) products with recycled content if possible and which do not
e.g. wallpaper, tiles involve adhesives that compromise indoor air quality. Consider wall tiles made from recycled glass

Wooden items Look for Forest Stewardship Council (FSC) or other certification guaranteeing sustainable re-planting
e.g. chairs, tables, desks, stools, and growing methods; use of indigenous species; no use of insecticides or fungicides; use of recycled
wardrobes, doors, windows or reclaimed wood. Avoid plywood that has been made using formaldehyde glues

WHY INTRODUCE PRINCIPLES OF IMPLEMENTING

THE ISSUES SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
RESPONSIBLE
PURCHASING
RESPONSIBLE PURCHASING
IN YOUR HOTEL
TIPS FOR SUCCESS MORE INFORMATION APPENDICES 15
© INTERNATIONAL TOURISM PARTNERSHIP, 2008
 ENVIRONMENTAL MANAGEMENT for HOTELS

PU R C HA SI NG AND SU PPLY C HA I NS
7
A P P E NDI X 2 Sourcing organic food and drink products

For many people, buying organic food, wine and other products and eating at organic restaurants
is part of their way of life. Sales of organic products are increasing globally by between 10 and
20 per cent each year. The sector accounts for about four per cent of the world's food and
beverage market and is estimated to be worth about US$40 billion.[1] Since your guests are
likely to purchase organic produce and other items in their home and work lives, it is something
you should consider offering them during their stay.

Many hotels and restaurants now serve meals and provide bathroom amenities prepared using
organically produced ingredients. Products used in the hotel spa are likely to be organic and, in
some hotels, even the sheets and towels are made using organic cotton.

Here are some suggestions of where to start if you are interested in sourcing organic products.

W H AT D O E S O R G A N I C M E A N ?
The term ‘organic’ is a legal definition and therefore all organic food production and processing
has to be strictly controlled. Organic food is produced without the use of food additives (some
of which are associated with conditions such as migraines and hyperactivity), chemical pesticides,
genetically modified (GM) crops and antibiotics. Organic standards also place an emphasis on
animal welfare and wildlife conservation.

All organic products must be certified by an approved organisation such as, for example, the
Soil Association (based in the UK), Sweden’s KRAV or Australian Certified Organic. The
International Federation of Organic Agriculture Movements (IFOAM) is the worldwide
umbrella organisation for the organic movement, uniting more than 750 member organisations
in 108 countries. IFOAM participates in international agricultural and environmental negotiations
with the UN and multilateral institutions to further the interests of organic agriculture worldwide.
Its Organic Guarantee System (OGS) unites the organic world through a common system of
standards, verification and market identity and fosters equivalence among participating IFOAM
accredited certifiers, paving the way for more orderly and reliable trade whilst acknowledging
consumer trust in the organic ‘brand’.

WHY SOURCE ORGANIC PRODUCE?

Many people ‘buy organic’ as part of a general desire for a greener lifestyle, knowing that organic
production causes as little harm to the environment as possible. In the case of organically
produced food and drink, many people believe it tastes better, is more nutritious and healthier,
given the debates that continue regarding the use of food additives, pesticides and genetically
modified (GM) organisms.

Organic products are not restricted to food. There are toiletries and beauty preparations,
gardening, furniture and even cleaning products that are produced from organic raw materials.

An increasing number of hotels cater specifically for guests who wish to follow as organic a
lifestyle as possible. Examples can be found in the directories of websites such as BIO-hotels
(www.biohotels.info) and organicplacestostay (www.organicholidays.co.uk).

[1] Source: Address by New Zealand's Minister of Agriculture, Biosecurity Fisheries and Forestry Jim Anderton at
Organics Aotearoa as reported on www.thepigsite.com on 20 August 2007.

WHY INTRODUCE PRINCIPLES OF IMPLEMENTING

THE ISSUES SUSTAINABLE SUPPLY
CHAIN MANAGEMENT?
RESPONSIBLE
PURCHASING
RESPONSIBLE PURCHASING
IN YOUR HOTEL
TIPS FOR SUCCESS MORE INFORMATION APPENDICES 16
© INTERNATIONAL TOURISM PARTNERSHIP, 2008