Supply chain

 
 

Our approach to sustainable supply chain management

Fuji Xerox's supply chain and manufacturing facilities

Fuji Xerox’s supply chain and manufacturing facilities are concentrated in Japan and China, with facilities also in Korea and Thailand.

In Australia our Supply Chain Operations team liaises with our sales and marketing teams to forecast and procure inventory from multiple overseas origins. This inventory supports the equipment, consumable and spare parts requirements of our diverse customer base throughout Australia, managed from a national distribution hub in Sydney and supported by regional distribution centres in all major capital cities. Our national distribution network and partnerships with specialised carriers such as Neway Transport, Toll and Australian National Couriers ensures the timely delivery of over 18,000 machines

The Fuji Xerox Australia approach to sustainable supply chain management is informed by the principles of the UN Global Compact, to which our parent company is a signatory. Our goal is to share our sustainability standards with our suppliers and work with them to improve environmental, social and governance outcomes.

Our direction is to:

  • Work through the Xerox and Fuji Xerox Group to assure integrity of our product supply chain.
  • Work with ‘high-risk’ suppliers to provide low-carbon products and services. Equipment manufacture, paper and logistics have been identified.
  • Share our sustainability standards with our indirect sales network.

While we rely on the Xerox and Fuji Xerox Groups to assure integrity of our product supply chain, we are responsible for developing, applying and monitoring sustainability standards with all other aspects of our supply chain. In the past we have intuitively focused on employee air travel, and on our paper and logistics suppliers as areas of our supply chain that carry a heavy environmental impact. We have also conducted some initial exploration to identify where risk to human rights might exist. For that reason, labour standards are incorporated in our parent’s ethical procurement program and in our own sustainable paper sourcing policy.

In10/11 we identified a new methodology to help us identify, measure and manage environmental risk in our supply chain. We worked with Trucost to conduct a supply chain hot spot footprint to identify carbon intensive sectors and suppliers. The report included an analysis of spend with 242 of our suppliers (which represents over 90 percent of our total spend with suppliers) for the year under review. These suppliers were mapped against industry sectors and average carbon data was applied.

We identified that our most carbon intensive suppliers are within these categories:

  • Manufacturing — paper, equipment and consumables
  • Transportation and warehousing — third party land, sea and air freight, warehousing services.

In 11/12 we plan to engage suppliers from these sectors on their carbon performance, with the aim of improving our carbon data collection in the supply chain and increasing our suppliers’ awareness of their environmental impacts (and those of their suppliers).

On an ongoing basis, this information will help us to develop a more complete view of the costs and impacts of running our business. From a risk management perspective, this process will pinpoint which suppliers are high risk in terms of carbon intensity and resource consumption and help us to understand our suppliers’ performance against respective industry benchmarks. This will enable us to improve performance management of our suppliers.

Top five industry categories by expenditure and carbon intensity Distribution of carbon