As Kordsa we require our suppliers and business partners to operate in accordance with the principles in the Statement on Code of Business Ethics prepared based on Kordsa Ethics Code. This code outlines our company’s expectations for the undersigned conduct regarding labor and human rights, health and safety, environmental protection, ethics, and management practices.
At Kordsa our main suppliers are the ones that provide the raw materials for our production. Our priority criterion in the selection of suppliers is the provision of products which meet our production quality expectations. Before we start purchasing from a supplier, the raw material it provides has to be approved by our R&D Department. After this product approval, the supplier assessment process starts.
After the selection process, we conduct supplier evaluations for our approved global suppliers by each site annually. We aim to reach every supplier at least every five years, regarding on-site evaluations.
Supplier Evaluation Procedure
Global and Site Purchasing Teams, Site Technical Departments, Site Production Teams and Quality Assurance (QA) Teams are responsible for the implementation of Global Supplier Evaluation Procedure which, defines principles of Global Supplier Evaluation. Global Quality Assurance Department is responsible for the coordination of Global Supplier Evaluations.
Every three months, Global Sourcing (GS) defines the suppliers and evaluator sites. Evaluations are performed during the time period declared by GQA. GQA Department starts the evaluation process by sharing the supplier list with the relevant department s where the evaluations will be conducted and ask them to do the relevant evaluation over the global supplier evaluation list. When the evaluations are complete, GQA department consolidates the recorded results and informs the GS, Site Quality Assurance Departments, Site COO and the ELT.
Evaluations are monitored based on a defined scale. Suppliers who score between 60- 70 are asked for corrective actions which are followed by GS.
Corrective actions are followed up by GS and GQA.
Global Sourcing informs a supplier, if its score is lower than 60 points. If there’s an alternative, supplier is put on hold by GS in the means of supply. But if there is no alternative supplier, GS will demand the supplier corrective actions. GS and GQA follow up the results of the actions. Supplier which we communicate the areas of improvement through a report, should take counteractions according to the evaluation. The counteractions and improvements should be shared with GS and GQA so that further supply could be available under follow up and controlled conditions. This procedure is reviewed by GS at least once in every two years.
New Supplier On-Site Assessment System
New supplier on-site assessments conducted by our Global and Site Purchasing Teams include the following criteria; Leadership and Quality Commitment, Process and Product Design Quality, Supplier Quality Management, Production Quality Management, Customer Quality Management, Continuous Improvement, People / HR and Safety & Environment. Our occupational safety evaluation includes availability of OHSAS 18001 occupational health and safety management system certification and environmental evaluation includes availability of an ISO 14001 environmental management system certification.
Supplier Sustainability Assessment Survey
We included the implementation of a more comprehensive sustainability impact assessment in addition to our current processes in 2019. We started to directly integrate the sustainability scores of suppliers to our current assessment system.
We invited more than 400 global and local suppliers from five countries in which we operate to participate in the Supplier Sustainability Assessment Survey. We reached 78% of global and 28% of our local suppliers on average.
The survey that we will continue in 2020 will evaluate the performances of our suppliers on topics of Reporting, Ethics Policies and Practices, Occupational Health and Safety, Human Rights, Supplier Screening, Labor, and Environmental Management. We plan to initiate working on improvements with each supplier starting with the global ones and aim to increase the number of suppliers that we reach.