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 key suppliers are the ones that provide the input products and 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, its product 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 selected global suppliers by each site annually. The suppliers who receive 60 points and below during the evaluations are generally audited on site, regarding all improvement areas in the following year. We aim to reach every supplier at least every four years.
Supplier Evaluation Procedure
Global and Site Purchasing Teams, Site Technical Departments, Site Production Teams and Quality Assurance (QA) are responsible for the implementation of Global Supplier Evaluation Procedure which, defines principles of Global Supplier Evaluation. Quality Assurance is responsible from the coordination of Global Supplier Evaluations.
Every year until November, Global Sourcing (GS) defines the suppliers and evaluator sites. Evaluations are performed during the time period declared by GS and QA.
QA Department shares an intranet link of supplier lists to the sites for them to evaluate their own suppliers. When the evaluations are complete, QA department consolidates the recorded results and informs the GS Department and the relevant departments at the sites.
Evaluations are monitored based on a defined scale. Suppliers who score between 60- 70 are asked for corrective actions which are followed by GS. QA shares final evaluation results with GS. GS is responsible to share results with Site Purchasing Leader, Operations Directors, ELT and the Supplier.
Global Sourcing informs a supplier, if the score is lower than 60 points. In this case supplier is put on hold by GS in the means of supply. But if there is no alternative supplier, GS will demand to the supplier their corrective action and they will follow the results. 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 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 Evaluation System
Supplier assessments conducted by our Global and Site Purchasing Teams until the last quarter of 2017 included 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. In our supplier assessments, our occupational safety evaluation included availability of OHSAS 18001 occupational health and safety management system certification and environmental evaluation included availability of an ISO 14001 environmental management system certification.
Starting from 2017, we aimed to integrate a more comprehensive sustainability impact assessment into to our current processes. Preparation of a supplier sustainability assessment questionnaire and its integration to current system took about six months. The questionnaire includes detailed questions on the following topics; Sustainability Management, Business Conduct and Compliance, Labor and Human Rights, Health and Safety, Environment, Supplier Assessment and Sustainability Reporting. Since the last quarter of 2017, the total scores of suppliers on these topics are being added to the overall assessment system scores.
In 2017, as a result of our audits, six suppliers fell in ‘need to improve’ class and received corrective action requests. Our Global and Site Purchasing Teams decided and planned to audit two of these suppliers in 2018.