Processes and Tools
We expect our suppliers to observe the principles of the UN’s Global Compact and the Responsible Care® initiative. This constitutes part of our General Terms and Conditions of Purchase. We also endeavor to contractually obligate our main suppliers to participate in the assessment and audit program of the TfS initiative.
We also expect our suppliers to have a management system that meets the requirements of ISO 9001 (quality) or comparable specifications such as GMP (Good Manufacturing Practice). Furthermore, we require our industrial suppliers to be certified to ISO 14001 (environmental protection).
Our complaints management system and the annual supplier evaluations allow us to collaborate with our suppliers to continuously improve their performance. Social and ecological criteria have been a fixed component of supplier evaluations since 2016. In addition, WACKER’s Technical Procurement & Logistics (TPL) honors the best suppliers and shippers at the annual Supplier and Logistics Days.
The systematic review of supplier risks plays a key role at WACKER. It is used to correctly evaluate our supplier relationships and adapt our procurement strategies accordingly. In the reporting period, reviews were conducted using our own supplier evaluations and, increasingly, direct contact with our partners. Key criteria, whose examination depends on the specific procurement segment, include quality, risk in the event of non-delivery, availability and dependency, intellectual property protection and a supplier’s financial stability.
We determine and improve the sustainability performance of our suppliers via TfS. 19 companies belong to the chemical industry’s procurement initiative. TfS is a non-profit organization. In 2015, the Ethical Corporation rated the initiative as “highly commended” in the “Best Supplier Engagement” category. In 2016, the Sustainable Purchasing Leadership Council (SPLC) honored TfS with the SPLC Market Transformation Award.
“Together for Sustainability” pursues the goal of making supplier evaluations that have been determined by means of assessments and audits accessible to all TfS members. Sharing information on an internet-based platform offers advantages to both sides: suppliers receive only one request from TfS, rather than multiple ones from several customers, while TfS members can access all inspection results.
Sharing Supplier Evaluations through TfS
Image rights: TfS