The main goal of the audit is to build a sustainable relationship with our
supplier. Moreover, these audits may result in the development and
implementation of joint improvement plans concerning non-conformities (e.g.
insufficient safety training, limited freedom of labor union, lack of
management systems or lack of emergency procedures etc.).
Multi-disciplinary audit teams
An audit team consists of a
Category Manager or (Lead) Buyer of DSM Purchasing and a professional
Sustainability auditor (responsible Safety, Health & Environment or
Sustainability Director of a DSM Business Group). In addition to this minimum
requirement, this duo is free to invite other disciplines to address specific
issues where applicable. Dependant on the required knowledge this could for
example be specialists from Corporate Operational Audit (COA) and Corporate
Safety, Health & Environment (SHE).
Consequence management
DSM Purchasing is using a quantified
supplier evaluation tool in which show stopper items as well as the high risk
items are identified and the significance of findings is rated. The criteria
for the significance are clearly defined. Based on the overall score,
suppliers will be categorized as follows:
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Supplier Category A: Sustainable supplier
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No follow up needed
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Supplier Category B: Acceptable sustainable supplier
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Specific improvements need to be addressed
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Supplier Category C: Unacceptable sustainable supplier
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Complete improvement program to be addressed
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Supplier Category D: Rejected sustainable supplier
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Supplier to be replaced*
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Our supplier sustainability program has worked so well to date that no
contracts have had to be terminated on grounds of non-compliance. A small
number of potential suppliers failed to achieve selection purely due to
sustainability considerations.
* Chairman of Purchasing Sustainability working group ensures that supplier
has no right to supply until a positive re-audit has taken place.
