NEWS: IN BRIEF

Chain reactions

Chemical companies could increase earnings by 14 per cent by improving their supply chain, a study by Accenture has found.

The review of supply chain practices in the chemicals industry published this month found the use of training and technology does not mirror the importance

It also found many fail to collaborate both internally and externally with suppliers. Accenture said it was critical procurement play a strategic role in all areas of the supply chain.

Green buying gets a boost

The Sustainable Development Commission has proposed specific targets to help the government reach its goal of making the UK "a leader in sustainable procurement by 2009".

It wants all public-sector bodies to buy and operate carbon neutral buildings, ensure at least a quarter of the public sector's fleet emits 125 grams or less of CO2/km and make sure school, prison and hospital meals use sustainable sources of fish and produce, with less emphasis on "meat-intensive" diets.

Organic growth in UK

Consumer power is forcing UK supermarkets to source the majority of organic produce from domestic producers.

According to the Soil Association's annual supermarket survey, five of the eight main food retailers now source over three-quarters of organic foods within the UK, compared to just two of the eight in 2003.

But a spokesperson for Asda said it is difficult and impractical to source locally. They said it was not always easy to source UK produce, particularly apples.

SM gets tree-friendly

Redactive, the publisher of Supply Management, has become the first publishing house in the UK to be accredited by The Programme for the Endorsement of Forestry Certification (PEFC) Council.

The recognition follows SM's introduction of environmentally friendly, 55 per cent PEFC sustainable graded paper.

DLO savings dismissed

Over 400 million in Gershon efficiency savings claimed by the Defence Logistics Organisation (DLO) have been dismissed by MPs because they "cannot be validated".

Following scrutiny of the Ministry of Defence's 2004-05 annual report, the House of Commons' Defence Committee said it expected figures to be based on robust evidence and "looked to the MoD to Introduce systems which can generate accurate figures".

A DLO spokesman said it had systems in place to track them and would continue to improve.

Firms told to clean up act

The Transport and General Workers' Union (T&G) has urged financial services and legal firms to follow the example set by Barclays, which has negotiated with its cleaning suppliers to guarantee its cleaners are paid at least 6.05 an hour - 1 above the minimum wage for workers aged 22 and above.

The deal applies to all 2,400 cleaners working for contractors Mitie, Aim and Lancaster.

Cheap seats go flexible

British Airways has altered its short-haul fares structure to make it possible to amend all economy tickets.

Travellers will now be able to make changes until midnight the day before departure for a fee of 30 and the difference in the fare if It has risen since booking.

BA sells short-haul seats in so-called pricing "buckets". The airline has slashed fares in the cheapest bucket on each route by 50 per cent.

Minority report from Ford

Ford spent $825 million (463 million) on goods and services from female-owned businesses in the first year of a programme to encourage minority suppliers.

This figure was part of a total spend of $5.5 billion (3.1 billion) worth of goods and services from minority suppliers during 2005.

The firm's direct spending with minority first-tier suppliers was $3.7 billion, and $1.8 billion was spent on purchases with second-tier minority and female-owned businesses.