2019 Sustainability report 1
SUSTAINABILITY REPORT 2019 PROCUREMENT OF INDIREC
T MATERIAL AND SERVICES / SUPPLY CHAIN INDIRECT PROCUREMENT Strategic Procurement work with Group-wide procurement of products, equipment and services required to keep the day-to-day business alive. The department perform professional sourcing and provide sourcing support to the organisation. A long term collaboration with preferred suppliers is crucial for our success to meet demands from the group and the world around us. In parallel we work with the entire supply chain, from spend analysis, sourcing, supplier evaluation and supply chain, to the P-2-P process (procure to pay). PURCHASING OF CARS AND SPARE PARTS For purchase of vehicles and original spare parts, I.A. Hedin Bil is guided by the cooperation with contracted OEM and car manufactures, where the majority has an express strategy towards a more sustainable future. Today many of the manufacturers provide alternatives for the environmentally aware customer. CODE OF CONDUCT In all contacts with our business partners the Hedin organization strive to be a professional partner. All procurement activities are based on objectivity, business expertise and competition. We evaluate our suppliers and partners based on objective factors such as ethical code of conduct, productivity, quality, ability to deliver, environmental and sustainability standards such as ISO 9001, 14001 & 45001. Most of our suppliers are located in Europe and the Nordic region. RESULTS • Total amount of suppliers has increased. • The number of sustainable disposables has decreased from 42.2% to 39.3%. • Contract compliance has decreased from 97% to 76%. ANALYSIS KPI for contract compliance and sustainable product ranges will be followed up and adjusted during 2020. The process for Supplier Quality Evaluation that will ensure the suppliers quality, environmental and sustainability position, supply chain, service and production will be fully implemented during 2020. TARGETS The supplier quality assurance for contracted suppliers will be evaluated and updated regularly. Focus areas that will be reviewed are professional services and real estate services. 24