OUR GROWERS Strategic sourcing Together, we create a distinctive product range at the lowest possible supply chain costs. Five years ago, the sourcing strategy for Royal Lemkes was decided. Every year, we work on its implementation and further development with a strict policy and adjust the strategy to the fastchanging retail and grower landscape when necessary. Progress • In 2020, we collaborated with 600 suppliers (900 in 2017) and the best breeders worldwide. • Our strategic objective is to have 80 per cent of our purchasing value with the top 100 growers to meet large-scale retail conditions. In 2020, that figure was 71 per cent. We are well on the way to achieving our goal but the greatest potential still lies ahead. • We work with key growers using a supplier management model, thereby investing in long-term relationships. Our data-driven approach enables us to create a sustainable supply chain and a distinctive range at the lowest possible costs for optimal shelf profitability. • We also strive to build close relationships with growers outside of the top 100. As garden centres are interested in a range that is both deep and broad, we provide a large variety of options for this comprehensive and important target group. At the end of 2018, we shaped our sustainable sourcing policy. In 2020, we established its four main themes: 1. Insight into and reduction of the footprints of 50 key growers 2. Reduction of the use of plastic in the supply chain 3. Reduction in CO₂ emissions 4. Working conditions in the supply chain The chapter ‘Our sustainable dream’ (page 40), outlines the steps we took this year. 34
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