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Do you have any suggestions on what sort of target engagement rates we could aim for?

Supplier engagement effectiveness depends on strong relationships, procurement policies, business value, and supplier maturity. Setting realistic targets requires understanding these factors and leveraging past performance benchmarks.

Customers tend to ask us questions like: 

  • "How can we measure the effectiveness of our engagement?"
  • "Should we issue a survey to engaged suppliers?"
  • "Should one of our key results be having a specific number of suppliers' carbon emissions calculated using primary data from these suppliers?"
  • "Do you have any suggestions on what sort of target numbers we could aim for?"

Supplier engagement rates depend on 3-4 key factors: the strength of their relationship with their suppliers, their procurement policy, the value of their Customer's business to them (as a proportion of their revenue), and their maturity.

Here’s a breakdown:

  1. Supplier Relationship: Suppliers with strong relationships with their customers tend to be more responsive and engaged. They have viable contacts who address requests promptly and fulfil them.
  2. Procurement Policy: Suppliers who need to adhere to specific procurement policies to maintain their contracts are more likely to fulfil requests. If incorporating these requests into their procurement policies and annual business reviews becomes standard, greater engagement is expected.
  3. Business Value: Suppliers with a significant portion of their revenue coming from their Customer are more likely to engage and complete requests. 
  4. Supplier Maturity: Less mature suppliers are more likely to provide spend data, while more mature suppliers can confirm or provide primary data on measured emissions, calculation methodologies, and evidence of audits.

To set an appropriate target, we need more information about the Customer's procurement policy and their willingness to notify suppliers about potential future data requirements. Additionally, knowing the suppliers’ identities, revenues, and maturity levels would help us assess their likelihood of compliance.  Understanding the Customer's relationships with their suppliers, particularly if they have responsive contacts, would also aid in setting a realistic target.

Without this information, it will be challenging. However, Emitwise has aimed for >60% response rate and a 30% data submission target in past campaigns, meaning 2 in 3 suppliers responded and 1 in 3 suppliers provided some data, whether spend or emissions. We have generally met this target, including with data submission extensions. 

Finally, ask your internal teams what response and engagement rates have looked like when previously engaging suppliers.  It’s advisable to set ambitious yet realistic goals based on past performance and industry benchmarks.