GRI-G4  DMA, EN32, HR10, LA14, SO9
This content was subject to assurance by SGS Italia S.p.A. (14 March 2014).

Assessing potential suppliers

In 2013, the Group adopted a new supplier assessment system which strengthened the criteria relating to sustainability.

The SEA (Supplier Eligibility Assessment) identifies suppliers’ strengths, weaknesses and capabilities to produce a product of the required quality, performance and cost, and whether a supplier has the potential to be a high-performing supplier for the Group. The SEA is a single-purpose tool to assess those suppliers who are not currently providing parts or services for the Group. The evaluation is done through a dedicated process assessing new suppliers or those suppliers that experienced a change in their organizational structure, location, commodity produced, manufacturing process, or technology.  The SEA may also be used in situations in which  the supplier’s location has not delivered products for more than 24 months. The SEA is required well before the sourcing phase even if the Supplier has already been assessed for other families, products, or commodities. This allows all potential new suppliers to be included in a source package. Suppliers are also required to adopt a Code of Conduct or Code of Ethics, governing matters such as respect for human rights and anti-corruption measures, and to implement certified systems for Health and Safety Management and for Environmental Management. Additionally, suppliers  must provide evidence of  the existence of process and product quality improvement processes; training courses to expand the skills of their internal staff; and adequate and comprehensive sub-tier supplier development methods.

The SEA consists of an audit carried out at the supplier’s facility, and is generally preceded by the completion of  a Supplier Data Profile. Subsequently, if required, a Gap Analysis document may be created to define corrective actions, responsibilities, and target dates for resolution of  all identified  items. Twenty new suppliers were evaluated in 2013 through this process. In general, 100% of new suppliers are evaluated according to sustainability criteria by means of the Supplier Eligibility Assessment and the self-assessment questionnaire.