New paths to competitive advantage

From technology to marketing

Aarhus Olie is well aware that its environmental performance affects its possibilities on the market. The enterprise has several major international customers who critically follow the enterprise, which among other things is one of the world's leading suppliers of vegetable oils to the foods industry.

Once yearly the enterprise is inspected by auditors, who award points for environmental performance, hygiene, safety, quality control, etc. The maximum score is 100, and if the enterprise does not approach 85 points, it risks being struck off the supplier list. As environmental performance gives up to 10 points, it is not hard to imagine how important it is for Aarhus Olie to attain a high score here. It is not an area to be taken lightly.

Standard-of-the-world

"If the major companies impose new requirements, environmental conditions have to be upgraded. Often the requirements exceed Danish legislation, but it is expected that we live up to the standard-of-the-world," says Safety and Environmental Officer Tom Christiansen and continues:

"Our major international customers cannot accept unfavourable publicity. If it becomes internationally known that their suppliers take things lightly, it rubs off on them. They therefore like to cover their backs. The environmental focus has switched from technology to marketing - although the technology still has to be in order, of course."

"The tendency is clear. Fewer and fewer enterprises purchase solely a product - they purchase a solution where social responsibility, including consideration for the environment and safety, is important. Consumers are becoming increasingly conscious about the products they purchase, and producers and retail chains cannot ignore this. They impose greater requirements on themselves and hence also on a supplier such as Aarhus Olie. The chain is interlinked," says Marketing Manager Lars Gravholt.

"We impose requirements on the chain, so in that way it spreads like rings in the water. I thus consider it important that the enterprises create strong networks with other enterprises," says Tom Christiansen, who is in no doubt that in the long term, demands for environmental documentation will increase in international trade.

Aarhus Oliefabrik A/S, Aarhus, 500 employees.