Supply Chain
Highlights
Our Supply Chain
The supply of products to our global business units is managed through the Group Procurement team, who review the annual global spend for major businesses and track suppliers by category, country of manufacture and annual spend. The Company has two factories in the UK, which manufacture hardware and consumable products for the global business, and an in-house Workwear company which supplies garments and flat linen to the French Workwear business.
We purchase a wide variety of preparations for the control of pests, hardware and equipment such as rodent traps, insect light traps and bird protection devices which are designed internally and either manufactured in-house or sourced externally from specialist suppliers. Spend in Initial Hygiene includes washroom equipment such as soap dispensers, feminine hygiene units and consumables such as soap and paper. Liquid consumables for these dispensers are mainly manufactured at the Rentokil initial Supplies (RIS) factory, while sourcing of paper products is from certificated suppliers which are optimised by global location.
Our Approach
The majority of the revenue earned by our business is through route-based service activities carried out by full-time employees of the Company and therefore under our direct control.
The products used in the performance of these services make up between 5% and 15% of the service cost, depending on the business category. These products are sourced through our own dedicated supply chain from suppliers who are robustly audited before being commissioned, and regularly thereafter on a risk-based frequency.
The key elements of Rentokil Initial’s Supply Chain Management are product quality, service delivery, and delivered cost. Sustainability of supply is assured through the robust implementation of governance procedures.
Read moreOur Approach
The majority of the revenue earned by our business is through route-based service activities carried out by full-time employees of the Company and therefore under our direct control.
The products used in the performance of these services make up between 5% and 15% of the service cost, depending on the business category. Nevertheless, these products are sourced through our own dedicated supply chain from suppliers who are robustly audited before being commissioned, and regularly thereafter on a risk-based frequency.
The key elements of Rentokil Initial’s Supply Chain Management are product quality, service delivery, and delivered cost. Sustainability of supply is assured through the robust implementation of governance procedures. In particular:
1. Supplier Code of Conduct
Outlines the standards and controls expected from all suppliers of goods and services to the Group and which are audited against. The Supplier Code of Conduct is available in 13 local languages. All contracts and agreements for the supply of goods and services by both individuals and companies included a clause requiring compliance with the Supplier Code from March 2019. Suppliers who do not have contracts have confirmed their receipt and understanding of the code.
2. Rentokil Initial Supplier Standard
Specifies the required standards of product quality, regulatory compliance, factory management and delivery performance as well as adherence to environmental, social and governance standards. Used for all supplier audits.
3. Procurement Policy
Specifies the minimum mandatory standards for procurement across the Company and recommends best practice guidelines with standard templates for supplier contracts.
4. Warehouse Management and Inventory Control
Covering minimum mandatory standards and best-practice guidelines for the receipt, storage and despatch of products, from technicians’ vans to national warehouses.
Read our Supplier Code of Conduct
These standards cover Company-wide procurement managed by the Group Procurement team and are in addition to the specific clauses that relate to bribery and corruption and modern slavery included in all supply chain contracts.
The Company has published its third Modern Slavery Statement in accordance with the requirements of the UK’s Modern Slavery Act 2015. This statement covers policies, contractual practices and due diligence processes undertaken in its Supply Chain management.
We strive to maintain the highest standards of ethical behaviour and governance compliance, and recognise our responsibility to manage our business and supply chains to identify and alleviate any potential or actual human rights violations, including modern slavery.
Policies, Procedures and Training Relating to Modern Slavery
Rentokil Initial plc and its subsidiaries are committed to acting in accordance with the law in every country in which we trade. Our companies and employees also operate under a number of policies to ensure a high standard of social, governance and ethical compliance, of which the cornerstone is the Code of Conduct. All policies are available internally on the Company’s intranet with key policies placed on the Company’s website.
Read morePolicies, Procedures and Training Relating to Modern Slavery
Rentokil Initial plc and its subsidiaries are committed to acting in accordance with the law in every country in which we trade. Our companies and employees also operate under a number of policies to ensure a high standard of social, governance and ethical compliance, of which the cornerstone is the Code of Conduct. All policies are available internally on the Company’s intranet with key policies placed on the Company’s website.
Code of Conduct
The Company’s Code of Conduct (the Code) has been designed to help us achieve our responsibility as one of the world’s leading support services companies to set the highest standards of conduct. It is a fundamental commitment to comply with all applicable legal requirements and with high ethical standards. The Code outlines responsibilities to colleagues, customers and to the Company. It highlights our determination to embed our values of Service, Relationships and Teamwork and a culture of integrity across the Company. In 2019, the Company undertook a confidential survey of all colleagues and the question relating to ‘I have a good understanding of our values’ received a score of 90% (one percentage point above the global norm).
First introduced in 2011, the Code was updated in 2016 and is available to colleagues in multiple languages. The Code is accompanied by an online training programme which was refreshed most recently in October 2017. This is a compulsory training requirement for all new colleagues.
In the Human Rights section of the Code, we state that Rentokil Initial will under no circumstances make use of forced or coerced labour, servitude or slavery and will only employ individuals who are working of their own free will. It further states that no colleague will be deprived of identity papers, or be required to provide financial inducements to the Company, to facilitate their employment.
Policies
In addition to the Code of Conduct, the Company maintains policies on human rights, customers and suppliers, and rights of employees. Specific policies applicable to modern slavery include:
- Dignity at Work
- Group Diversity and Inclusion Policy
- Equal Pay
- Human Rights Policy
- Supplier Code
- Supplier Management Standard
All of these are available on our website at rentokil-initial.com/responsible-delivery/policies.
During 2019, over 16,000 Core Corporate Compliance training courses were completed by colleagues on the U+ online system.
Compliance to the specific policies listed above, as well as to the Code of Conduct, is checked and validated each year through a Letter of Assurance process, which is cascaded down through the Company from the Chief Executive. All senior managers are required to sign a letter to confirm they comply personally with key corporate policies and the Code, and that the colleagues for whom they are responsible are aware of and understand what is required of them, and that they are not aware of anyone within Rentokil Initial that is not complying to the Code. Details must be provided of any areas of non-compliance or uncertainty. The Audit Committee reviews the Letter of Assurance process and outcome.
Modern Slavery Awareness Training During 2019
The following training was carried out in 2019 across the Group:
- The on-line training module for Modern Slavery Awareness that had been launched in 2018 by the U+ Training Academy was rolled out across the Company. An additional 1,947 colleagues have undertaken the on-line course in 2019, of which 87% passed the assessment test at the end of the module.
- Procurement Managers from all major markets received refresher training on the key aspects of modern slavery during the Global Procurement Conference in March 2019 as part of the introduction of the Supplier Code.
- Participation by the Global Product Quality Manager in the Ethical Trade and Human Rights Forum in 2019 to gain knowledge, share experiences and cooperate with other multi-nationals.
Assessment of Risk by Country of Manufacture
Products manufactured in India, Malaysia and Indonesia are perceived to have a higher element of risk from a modern slavery perspective, and are therefore assigned a more frequent audit cycle. It is, however, never forgotten that there are risks of enforced labour and poor treatment of workers in every country. The level of risk in each country of manufacture is assessed against the percentage spend with suppliers in that country:
Country of manufacture | Percentage spend | Risk of modern slavery* |
USA | 57.4% | Low |
UK | 13.7% | Low |
France | 10.2% | Low |
Malaysia | 3.8% | High |
Netherlands | 3.6% | Low |
China | 3.2% | Med |
Italy | 2.6% | Low |
India | 0.9% | High |
Indonesia | 0.9% | High |
Poland | 0.7% | Med |
Australia | 0.6% | Low |
Singapore | 0.5% | Med |
Ireland | 0.4% | Low |
New Zealand | 0.3% | Low |
Czechia | 0.2% | Med |
Spain | 0.2% | Low |
Germany | 0.2% | Low |
Assessed using the Global Slavery Index 2018, based on estimated victims per 1,000 population.
Main Areas for Product Supply
Supply Chain expenditure covers capital investment (rental equipment) and consumables in the three strategic categories of Pest Control, Hygiene, and Protect & Enhance. The latter includes the global Ambius business, Workwear in France and UK Property Care.
Read moreMain Areas for Product Supply
Supply Chain expenditure covers capital investment (rental equipment) and consumables in the three strategic categories of Pest Control, Hygiene, and Protect & Enhance. The latter includes the global Ambius business, Workwear in France and UK Property Care.
There are four main areas for product supply:
1. Unique Hardware and Equipment
Including Hygiene products such as feminine hygiene units and soap dispensers, and Pest Control products such as Insect Lights Traps and tamper-resistant bait boxes. The Company sets the design and specification, validated by the Global Science Centre to ensure compliance with international regulations. Suppliers are regularly audited by approved Factory Auditors against the Supplier Standard.
2. Branded Equipment and Chemicals
Sourced from world-standard reputable manufacturers e.g. Dyson hand dryers. These suppliers are audited on an ad-hoc basis when quality issues arise.
3. Consumables such as Paper, Soap and Pest Control Chemicals
Including unique products which have been specified for use only in the Company’s equipment and generic products which are sold across the industry. All products are tightly monitored, and supplier audits are conducted to ensure compliance with international regulations, quality standards and performance specifications.
4. Textile Products
Split into products for Initial Textiles in France and standard products for Hygiene (linen towel rolls and mats). These products are often sourced from developing world countries. A high degree of compliance auditing by internal and external auditors ensures adherence to ethical standards.
The Group Procurement and Supply Chain Team is responsible for direct and indirect group procurement, product quality and service delivery, and in-house manufacturing facilities. Training, including environmental, social and governance matters, is developed through U+ and rolled out across the Company.
Supplier Management
In all sourcing decisions, compliance with Rentokil Initial standards for a responsible and sustainable business approach is used as a go/no-go gate rather than as a weighting factor for decision-making. Once the relationship has been established, suppliers are audited on a prescribed frequency based on their performance trend and level of risk. The risk assessment considers manufacturing location, product criticality, supplier reliability, management capability and previous audit results, and varies from a one-year to four-year audit cycle. We classify our suppliers as Critical, Major and Local for the purposes of audit, compliance and management control.
Read moreAssessment of Risk and Audits
Audits of critical and major suppliers are conducted by a Product Quality Manager against the Rentokil Initial Supplier Management Standard (re-issued in 2019), which specifies the required standards of product quality, regulatory compliance, factory management and delivery performance as well as adherence to environmental, social and governance standards. The audits start with two sections which focus on CSR and modern slavery, (a) within the factory concerned, and (b) through the supply chain into the factory.
Read moreBuilding a Sustainable Supply Chain
Developing a collaborative supplier base is central to the Company’s supply chain strategy.
Read moreSustainable Products
In Hygiene, hand wash liquids and foams are manufactured in-house, enabling a wider range to be produced, and ensuring full compliance with EU regulations, with full safety assessment and preservative efficacy data. Production is to the Good Manufacturing Practice standard specified for food processing and cosmetics manufacture and HACCP standards. The range is eco-certified, carrying Nordic Swan and Eco Flower labelling (except anti-bacterial soaps, because of their ingredients). Rentokil Initial Supplies is certified under ISO 9001 along with its sister manufacturing company, Dudley Industries. Both businesses are subject to audit under the Supplier Standard.
The Company’s paper supplies also carry the FSC, Nordic Swan and Eco Flower labelling as appropriate (with the exception of product such as Scrim paper, which has a polyethylene weave). The Eco Labelling range now includes EcoClear WC & Urinal Fluid products.
Sustainable Suppliers
Developing a collaborative supplier base is central to the Company’s supply chain strategy. Within Hygiene and Pest categories, there are monthly teleconferences with key suppliers to discuss performance against agreed KPIs.
Incentives for suppliers encourage and reward longer-term global partnerships. The Company is now consolidating the sourcing of pest control products across Europe items to maximise the procurement and supply chain synergies, minimise the potential for non-compliance by smaller suppliers and provide volume opportunities for preferred suppliers.
Global logistics management plays a key role in building a sustainable supply chain. The Company’s supply chain transportation footprint stretches from product suppliers through warehouses to branches and to end-user technicians and customers. This global network is continually reviewed to ensure that the most efficient supply route from supplier to end-user is employed. Shipping volumes are consolidated at the optimum location to provide the optimum service level at the lowest cost and environmental impact. Where volumes are high, shipments are made directly from supplier to the country warehouse or branch.
Delivering Safe Products
Sustainability risks for critical suppliers are identified and managed by the Global Product Quality Manager, whilst risks for major local suppliers are identified and managed by local Quality Managers and the country procurement team.
The Global Science Centre (The Power Centre) validates chemicals used in pesticides and fragrances to ensure they meet public regulations for all markets, such as REACH in Europe. Hardware and Equipment is validated to ensure compliance to local regulations such as the CE mark for products sold in Europe and the RoHS directive, which includes the verification of second and third-tier sources of components.
The product specifications set by the Marketing and Innovations team take explicit account of regulatory issues and responsible business practices. Where legacy products do not conform to the latest European regulations they are redesigned or reformulated to ensure compliance.