Procurement is organized globally at Evonik and comprises direct procurement (raw materials, logistics and packaging) and indirect procurement (general and technical goods and services). Both are subdivided into strategic and operational procurement activities. Global procurment is managed from Germany, with the support of regional units in Asia and in North and South America.
Validation and evaluation of suppliers
Validation and evaluation of our suppliers is an integral part of sustainable supply chain management at Evonik. We therefore work systematically both to extend strategic relationships with suppliers and to validate new suppliers. Validation is the first step in every new supply relationship. It comprises economic and quality-related requirements as well as environmental, social and corporate governance aspects. We expect our suppliers to share our principles and to act correctly in all respects, which means accepting the responsibility towards their employees, business partners, society and the environment.
These requirements are documented in our Code of Conduct for Suppliers, which is based on our corporate values, the principles of the UN Global Compact, the International Labour Standards issued by the International Labour Organization (ILO), and the topics addressed by the Responsible CareR initiative.
Tools used to evaluate suppliers include the system developed by Together for Sustainability (TfS), an initiative established by the chemical industry to foster sustainability in the supply chain. Here, we pay special attention to our strategic suppliers and suppliers of strategic raw materials.
As part of our strategic supplier management, we have set the following targets, which are applicable throughout the Evonik Group:
- Conduct at least 20 supplier sustainability audits under the shared audit principle of the Together for Sustainability initiative
- Continue the analysis of suppliers of critical raw materials through TfS self-assessments.
- Evaluate the sustainability performance of 90 percent of suppliers of critical raw materials by 2020 (status at year-end 2016: > 70 percent)