Suppliers’ sustainable business acumen is critical to the success and integrity of sustainable procurement. By developing and enforcing a Supplier Code of Conduct, procurement departments mitigate unwanted risk and support suppliers in maintaining a high level of sustainability integrity.
Following are important components of a Supplier Code of Conduct:
- Systematic coverage across all business units and categories,
- Mandatory supplier self-assessment questionnaire,
- Supplier registration process is consolidated in a centralized database and system is linked to sourcing, procure-to-pay and risk modules,
- Complete qualification and due diligence process in place covering all supplier risk and quality aspects against clear internal quality requirements and external standards e.g. industry specific ISO certifications,
- Sustainability fields and data points are mandatory and detailed documentation and proof is requested,
- A dedicated and empowered team is in charge of the validation,
- Absence or incompleteness of sustainability data points blocks the supplier validation and disables the creation of purchase orders.
About the AuthorFollow on Twitter Follow on Linkedin Visit Website More Content by EcoVadis