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
We expect our suppliers to share our principles and to act correctly in all respects, which means accepting responsibility towards their employees, business partners, society, and the environment.
Validation is the first step in every new supply relationship. For this purpose, we use a validation process based on the values defined in our code of conduct for suppliers. Alongside quality, environmental protection, safety, health, and energy management, the assessment of potential risk factors includes corruption prevention, cybersecurity, labor and social standards, human rights conflict minerals, and responsibility within the supply chain. All details are entered online and evaluated using a validation matrix
All suppliers are informed about corruption prevention and the related measures in our code of conduct for suppliers and our general terms and conditions of purchase. In 2019, we evaluated 2,000 new suppliers (nearly 90 percent).
Successfully completed TfS assessments can also be used as evidence of validation. Overall, suppliers are evaluated using a method that identifies and quantifies risk factors. The aim is to safeguard the supply of raw materials and technical goods to Evonik and gain access to new procurement markets and suppliers.
We apply the same care to the evaluation of existing relationships with suppliers. Strategic suppliers are examined regularly as a basis for initiating improvements where necessary.
To minimize the risk to Evonik, as part of our management of contractors, evidence, and self-assessments on compliance with the relevant German legislation were obtained and evaluated.