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Supply Chain Sustainability

Supply Chain Sustainability

In recent years, we've taken steps to incorporate sustainability principles into our supply chain management processes. We've integrated sustainability content into our source selection documents, into certain supplier assessment tools, and into many of our suppliers' quarterly business reviews. Raytheon has also worked with our office supply partner to procure eco-friendly materials including products that contain recycled content.

Measuring Success
One of Raytheon's 2020 goals is to obtain sustainability commitments from 90 percent of certain preferred suppliers. To measure their commitment, we determine whether they have two or more sustainability goals that align with Raytheon's 2020 sustainability goals. In 2016, our initial supplier survey determined that 22 percent had two or more sustainability goals aligned with ours. To reach our 90 percent goal, we will communicate with our supply chain about the importance of sustainability and encourage them to consult our online supplier resource, “Doing Business with Raytheon.”

Raytheon is also committed to ethical business conduct and the responsible sourcing of materials through our global supply chain.

PROMOTING ENERGY STAR®

ENERGY STAR partners commit to spreading awareness of the program across their networks of business partners. In 2016, Raytheon conducted a sustainability survey of approximately 700 of our preferred suppliers to determine whether they have sustainability goals. The survey included a question about whether respondents are — or are interested in becoming — ENERGY STAR partners.

99 of the appropriate 700 suppliers said they were interested in becoming ENERGY STAR partners, 18 of the suppliers were already ENERGY STAR partners and 133 of the suppliers had energy reduction goals. The company's Conserving Raytheon Energy and Water team developed a plan to follow up with all the interested suppliers.

Collaboration Drives Performance
Raytheon established a 2020 sustainability goal to develop and deploy an electronic platform that our suppliers can use for Requests for Proposal/information/Quote (eRFX).

The new platform will reduce manual technical data package generation, which in turn will result in less waste in mailing, packaging, and sending CDs. We aim to process 80 percent of these packages electronically.

Another 2020 goal is to integrate sustainability questions and criteria into our periodic supplier assessments.

Raytheon also aims to reduce the environmental impact of supplier packaging by 10 percent compared to 2015 levels. Our Environmental, Health, Safety and Sustainability team is collaborating with Supply Chain to work with selected suppliers on packaging reduction initiatives. Together, we aim to reduce packaging volume and use environmentally preferred packaging wherever possible.

Hardening the Supply Chain
Raytheon's cybersecurity expertise makes us a valuable supply chain partner. We draw on our capabilities to share best practices and alert businesses to potential security threats.

The collaborative environment we've built enables us to protect and pass on technical data. We can also push out emails and notifications if we detect a threat to a supplier network. Suppliers also agree to notify us if they experience a breach, and we work with them to determine its impact and meet disclosure requirements.

We also collaborate with other large defense industry suppliers in the Exostar Exchange. This secure, automated system gathers demand signals from other manufacturers, exchanges supplier documentation electronically to streamline and simplify that process, and generates advance shipping notices, invoices and other documents.

The Exchange also collects data on cybersecurity performance. Monthly meetings enable us to share forecasts, collect feedback and discuss ways to update the platform to make it more user friendly for suppliers.

Raytheon is working to build strategic relationships both inside and outside of the company. Improved collaboration between our supply chain, engineering, finance, logistics and information technology teams will enable us to collect more and better data on the supply chain and economic universe. We can then share relevant industry information across our diverse supplier community. In November 2016, Raytheon adopted a new, streamlined Enterprise Supplier Data Management strategy/platform that enables Raytheon's four lines of business and Forcepoint to manage their suppliers using one platform within a common SAP business software environment.

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