Global supply chain
Outokumpu has over 9,000 suppliers gloablly. Clear majority of suppliers are located in those countries in Europe, USA, and Mexico, where Outokumpu has its production units. In those locations where we have significant production sites with melt shops, local suppliers account for 80-90% of purchases.
Our purchasing decisions are made solely based on the Group’s best interests, taking into account the environmental, economic and social aspects. Suppliers will win Outokumpu’s business based on best value in use of product or service offered. Value in use means the total amount spent on a particular commitment, including, among other things, the initial contract price, life cycle cost of investment, effect on Outokumpu’s production efficiency and quality, commission fees, handling as well as other transaction costs and taxes.
Suppliers are monitored for sustainabilityAs our customers require a lot from us as a supplier, we place the most stringent requirements on ourselves, and require the same from our suppliers. All suppliers and subcontractors must comply with our Code of Conduct or similar standards and principles and meet our supplier requirements, which expect our suppliers to act according to applicable laws and regulations, maintain a quality management system, sign general terms and conditions and be able to clearly define, document and share their supply and production control processes including material traceability.
Outokumpu monitors its suppliers through self-assessment, screenings and audits. Most of the suppliers are going through a monthly compliance screening for sanctions. The self-assessments and audits are based on Outokumpu’s supplier requirements and focused on evaluating the suppliers’ social and environmental responsibility and quality management. As a result of the assessments, improvement opportunities and requirements can be identified and agreed with the suppliers. We take into account the OECD Due Diligence Guidance for Responsible Supply Chain.
Strict demands for our sites
Our environmental work is guided by the Group Environment, Health, Safety and Quality policy. Management systems and work routines implement this policy at each production site. All of Outokumpu's production sites employ certified ISO 9001 Quality Management Systems and ISO 14001 Environmental Management Systems. Typically, energy efficiency is integrated into environmental management systems, although many of the Group's sites have also achieved ISO 50001 certification for energy efficiency.
The functioning of these systems is monitored using both internal and external audits. In the long term all sites will be also certified against the coming ISO safety standard. See our ISO and OHSAS registrations.
See our site-specific certifications.