Processes and Tools
We identify our 500 most important global suppliers with the designation “Key Suppliers,” with the aim of using TfS to evaluate the sustainability performance of all of our key suppliers. Since joining TfS, we have made good progress along this path: over 65 percent of our key suppliers and over 80 percent of the global procurement volume they account for are already covered by TfS. Overall, more than 60 percent of our global procurement volume in 2018 was covered by TfS – for raw materials and energy, that figure is around 80 percent. We document TfS goal attainment in monthly management reports.
The results of TfS assessments/audits are integral to our process of supplier evaluation. When the results are unsatisfactory, we speak to the supplier about how they could make improvements. Reassessments or repeated audits are used to follow up on progress, and these have resulted in improvements for roughly 60 percent of affected suppliers. Consistently poor results and lack of cooperation have consequences, and may ultimately lead to business relations being terminated.
Further, we expect our suppliers to use a management system that meets the requirements of ISO 9001 (quality) or comparable specifications such as GMP (Good Manufacturing Practice). In the case of industrial suppliers, we also require certification to ISO 14001 (environmental protection).
Each year, WACKER honors its best suppliers and freight forwarders at annual supplier and logistics days – these now include an award in the “Sustainability” category as well.