The transport sector is a poster child for health and safety best practices. The new data released by Achilles this week shows how Achilles network members are leading the way in supply chain risk management.
Health and safety standards have always been the number one priority for the transport sector. As transport leaders will know, while complex supply chains and subcontracting are necessary for managing large-scale projects, they introduce complexities. If theses are not managed properly they can compromise workplace safety as well as wider sustainability KPIs.
These complexities include fragmentation of responsibility, varying standards, and limited control over workforce subcontractors. All of these can serve to create a disjointed safety and sustainability culture. Inconsistencies in policies, training, equipment use, and emergency procedures all culminate in contributing to workplace hazards and incidents. Similarly, the nature of the competitive bidding process can create pressure to cut costs. This makes subcontractors more inclined to prioritize speed and cost-efficiency over safety.
New data released this week by Achilles, the supply chain risk management specialist, clearly shows the power of the network effect. This effects supports in addressing these inherent risks across the interconnected transport and infrastructure supply chain.
Transport and Infrastructure Safety Indicators
Key markers of an effective safety culture in any organisation are the existence of well documented risk assessment processes, health and safety management systems, and incident investigation processes. An analysis of Achilles Transport and Infrastructure suppliers and subcontractors shows consistently high standards in this area as follows:
- Risk Assessment Processes: 98% of all Achilles suppliers working in the global transport and infrastructure sectors have a formal risk assessment process. This number improves further when looking at the bigger contractors with 99% of all large suppliers being fully compliant.
- Health and Safety Management Systems: 93% of all Achilles suppliers working in the global transport and infrastructure sectors have documented health and safety management systems. Again, this number becomes even stronger when looking at larger companies – with 97% having a verified system in place.
- Incidents Investigation: An impressive of 97% of all Achilles suppliers working in the global transport and infrastructure sectors have formal incident investigation processes in place. This rises to an impressive 99% when looking at larger companies.
The Commercial Advantages of Supply Chain Compliance
The network approach, which has been championed by Achilles since the early 90s, enables businesses to collaborate. It facilitates sharing knowledge, and collectively working to achieve increasing levels of safety and sustainability.
By leveraging Achilles’ global economies of scale, supply chain risk management costs are significantly reduced, and impressive efficiencies are delivered. For example, the Utilities Vendor Database (UVDB) which is managed by Achilles is estimated to save the UK utilities market a staggering £22 million in supply chain management and procurement costs every year. At the same time it shortens procurement processes by 30 days and improves supplier standards.
Compliance with Transport Sector Supply Chain Regulation
For transport leaders aiming to meet new supply chain risk regulations in regions like Australia, the EU, and Canada, this strategy aligns with OECD guidelines for risk management in supply chains. It offers a comprehensive framework for enhancing supply chain visibility. This framework also supports in identifying risks, ensuring transparent reporting, monitoring performance, and facilitating ongoing improvement. See here for more information on this supply chain due diligence approach and how Achilles enables Transport companies to meet this requirement.
Supplier and sub-contractor benefits
Better still, such an approach also works for transport suppliers and contractors too. Managing and sharing credentials via Achilles central supply chain management platform reduces the burden of evidencing their safety, finance, sustainability and cyber credentials. It also enables them to focus on improving performance – helping to drive up industry standards further.
To learn more about how Achilles can support your transport supply chain requirements contact us to arrange a no-obligation consultation with one of our supply chain risk management experts.
