Methodology for the Environmental Service Suppliers’ …
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Therefore, the result of the prioritization was focused on the risks classification of
each supply category, instead of classifying each supplier.
The methodology used to prioritize the categories was the “Risk Matrix Protocol”
from GVces (2015), which describes the necessary steps for the analysis elaboration
and for the risk matrix construction.
After defining the evaluated categories, determining the risk exposures factors
in sustainability and other parameters (weights, scales and metrics), a specific risk
matrix was developed for the environmental service suppliers’ categories, which
made possible the prioritization by risk level, as well as the identification of the most
critical, in other words, those categories are more likely to have a negative impact
on the customer as a result of the service provided.
To define the categories that would be evaluated, the list proposed by the OECD
and EUROSTAT (1999), along with GPMAI PR service providers were used. All
the categories proposed by the OECD and EUROSTAT could be used for analyses
in the risk matrix, however we opted for the categories that were most related to the
activities contracted by GPMAI companies.
The sustainability risk exposure factors were elaborated taking into account the
main social and environmental problems related to the categories of environmental
service suppliers. Table 1 shows the factors and other parameters adopted to construct
the risk matrix.
After defining the parameters, each category was analyzed in relation to internal
and external factors, and the respective scores computed in the table for calculation.
The numerical results of each dimension were plotted on a scatter diagram in which
the X-axis contains the internal factors and the Y axis contains the external factors.
The position of each category is the junction of these two results. The cut-off scores
for delimitating the risk levels were defined as follows: from 1 to 2, low risk; from
2.1 to 2.5, medium risk and from 2.6 to 3.0, high risk. Categories in the high-risk
quadrant are called critical categories. The result is consolidated in the risk matrix
for environmental service suppliers’ categories, shown in Fig. 1.
For the category analyses, the bias risk was considered, since the analysis of
the relevance of each activity to the environmental segment was not part of the
scope. Traditional and consolidated criteria of the purchasing process in organizations
such as price, term, quality, financial credibility and supply history, were also not
addressed. Following are some points about the categories positioning in the matrix,
the main requirements considered in the suppliers’ qualification processes, and the
relation of each category with the SDG.
The categories “Education, Training and Information”, “Consulting, and Engineering”, classified as being of low risk, are predominantly of intellectual work, and
from the suppliers’ qualification point of view do not really present critical issues.
The analysis and definition of the supplier consider technical aptitude, professional
certifications, and capacity to meet the deliveries established in the contract.
In the category contracting “Equipment and materials”, also classified as being
low risk, the technical specifications of the product for decision making prevail.
There are several available channels for purchasing (retail stores, direct from the
407
Therefore, the result of the prioritization was focused on the risks classification of
each supply category, instead of classifying each supplier.
The methodology used to prioritize the categories was the “Risk Matrix Protocol”
from GVces (2015), which describes the necessary steps for the analysis elaboration
and for the risk matrix construction.
After defining the evaluated categories, determining the risk exposures factors
in sustainability and other parameters (weights, scales and metrics), a specific risk
matrix was developed for the environmental service suppliers’ categories, which
made possible the prioritization by risk level, as well as the identification of the most
critical, in other words, those categories are more likely to have a negative impact
on the customer as a result of the service provided.
To define the categories that would be evaluated, the list proposed by the OECD
and EUROSTAT (1999), along with GPMAI PR service providers were used. All
the categories proposed by the OECD and EUROSTAT could be used for analyses
in the risk matrix, however we opted for the categories that were most related to the
activities contracted by GPMAI companies.
The sustainability risk exposure factors were elaborated taking into account the
main social and environmental problems related to the categories of environmental
service suppliers. Table 1 shows the factors and other parameters adopted to construct
the risk matrix.
After defining the parameters, each category was analyzed in relation to internal
and external factors, and the respective scores computed in the table for calculation.
The numerical results of each dimension were plotted on a scatter diagram in which
the X-axis contains the internal factors and the Y axis contains the external factors.
The position of each category is the junction of these two results. The cut-off scores
for delimitating the risk levels were defined as follows: from 1 to 2, low risk; from
2.1 to 2.5, medium risk and from 2.6 to 3.0, high risk. Categories in the high-risk
quadrant are called critical categories. The result is consolidated in the risk matrix
for environmental service suppliers’ categories, shown in Fig. 1.
For the category analyses, the bias risk was considered, since the analysis of
the relevance of each activity to the environmental segment was not part of the
scope. Traditional and consolidated criteria of the purchasing process in organizations
such as price, term, quality, financial credibility and supply history, were also not
addressed. Following are some points about the categories positioning in the matrix,
the main requirements considered in the suppliers’ qualification processes, and the
relation of each category with the SDG.
The categories “Education, Training and Information”, “Consulting, and Engineering”, classified as being of low risk, are predominantly of intellectual work, and
from the suppliers’ qualification point of view do not really present critical issues.
The analysis and definition of the supplier consider technical aptitude, professional
certifications, and capacity to meet the deliveries established in the contract.
In the category contracting “Equipment and materials”, also classified as being
low risk, the technical specifications of the product for decision making prevail.
There are several available channels for purchasing (retail stores, direct from the