Innovation award: Puma
Using the power of a global and successful brand, Puma aims to use its position to elevate the social responsibility and sustainability performance of its suppliers.
Teaming up with world bank subsidiary, the International Finance Corporation (IFC), and one of Puma’s core banks, BNP Paribas, the programme hopes to include all of Puma’s suppliers irrespective of location and size.
This innovative pricing model uses a defined set of metrics to rate suppliers on their environmental impact and on their social responsibility. The project known as Puma Vendor Financing Programme (PVFP) will provide better financing to those suppliers who achieve higher ratings, promoting a model of green manufacturing and ensuring Puma’s supply chain for the future.
For the judges, Puma was a clear winner of the innovation award. As the judges said, “A lot of buyers can offer a best-practice approach, but only few are innovative and inspirational. Puma has offered SCF in return for a high-compliance performance; no cashflow benefit for Puma, but it improves sustainability. This is a great innovative entry.”
As one of the first supplier to join the said, “This innovative programme will not only help us improve our cash flow, but will also provide us with a financial incentive to improve our environmental, health and safety and social standards, which will ultimately reduce our operating costs and enhance our performance.”
Since the launch of the programme 15% of suppliers have been onboarded with more than $100m of financing already having been provided.