A sustainable business can only be achieved with the full involvement of all our suppliers. Our reliable supplier management system helps us mitigate risks, ensure on-time delivery, secure the supply of raw materials even in times of crisis, improve processes, drive innovation and enhance our products in terms of sustainability and quality.
Our sourcing practices framework implies to continuously re-evaluate and enhance products in terms of sustainability and quality by providing access to more sustainable materials and reducing GHG emissions along the supply chain. Our procurement practices are based on mutual respect, communication and close cooperation with our suppliers.
Our responsible sourcing process
We require suppliers to apply the same principles to their own supply chains as we do to ours, irrespective of the jurisdiction in which they operate and the applicable laws. We want to work with suppliers who share our principles of ethics, integrity and respect for people and our environment. We work with around 4,500 suppliers in Europe, Asia, the Americas, and Africa, which increases the complexity, scale, and diversity of our supply chain.
1 – Supplier Code of Conduct
Before we start business or operations with new suppliers, we analyze and evaluate them according to clearly defined criteria. The process starts by screening all potential business partners against a sanctions list. We expect all suppliers to sign our Supplier Code of Conduct.
2 – Supplier performance evaluation
At least once a year, we use our internally developed supplier performance evaluation system to assess whether our key suppliers comply with our specific criteria. Based on performance, they are categorized into one of three grades. In case of non-conformities, suppliers are required to take corrective measures.
3 – Supplier risk evaluation
A systematic risk analysis process to identify, assess and mitigate risk helps us to ensure availability of materials, reduce dependencies and make objective buying decisions. Our further strategy will include the qualification of additional suppliers (multi-supplier strategy).
In the first step of our auditing procedure, our suppliers are required to fill out a self-assessment survey. Our supplier risk evaluation matrix also includes social and environmental criteria. During the second step, a team of delfort technicians, quality assurance agents and purchasers visit the supplier on their site to ensure that the answers provided in the self-assessment reflect the reality. If a supplier is identified as having a significant potential negative environmental and social impact, delfort will terminate its relationship with the company (selective phase out).
4 – Supplier development
Our lead buyers analyze the results of the questionnaires and audits according to a clearly defined standard process, and the supplier receives a copy of our evaluation, as well as an action plan. If any sustainability deficits are identified, we engage with the supplier to understand the areas of risk and work together to define measures for improvement. Repeated violations will lead to termination of the supplier relationship.