Vendor management
At Arteco, we believe that strong vendor relationships are essential to our success and our ability to deliver high-quality products to our customers.
Our approach to vendor relationship management is built on collaboration, transparency and mutual respect.
Vendor management at Arteco consist of vendor onboarding, vendor relationship management and vendor evaluations.
1. Vendor onboarding
At Arteco, we go the extra mile for our customers and constantly strive to excel in all aspects of our business. However, we cannot achieve this alone. Our suppliers play a crucial role in our success and in fulfilling our mission. We view them as partners who are integral to our operations. We not only expect our suppliers to hold the necessary quality certifications but also to share our core values.
In collaboration with our parent companies we have developed a strategized Supplier Qualification Process (SQP). We have adopted an approach that focus on improving the overall performance through collaboration. This strategic approach helps us deal with suppliers in a systematic way that includes insightful analysis of their background, performance, and credibility. Our supplier selection and qualification process is rigorous and based on several critical factors. We select suppliers based on quality, sustainability, and key commercial and operational criteria. This thorough evaluation ensures that we can consistently provide the products and services needed to maintain our competitiveness and financial performance while staying true to our core values. We require our vendors to hold relevant certifications, such as IATF 16949:2016, ISO 14001:2015, ISO 45001:2018, and ISO 50001:2018, ensuring that they meet our stringent requirements for quality, environmental management, occupational health and safety, and energy management.
Transparency is a cornerstone of our supplier selection process. We have developed a Supplier & Subcontractor Code of Conduct, which outlines our expectations regarding workplace standards and business practices. This code applies to our suppliers, subcontractors, and their entire supply chain, including parent entities, subsidiaries, affiliates, and others.
By adhering to these high standards, we ensure that our supply chain remains robust, reliable, and aligned with our commitment to operational excellence.
2. Vendor relationship management
Once selected, we work closely with our vendors to foster a collaborative and supportive relationship. We provide clear guidelines and expectations through our Supplier & Subcontractor Code of Conduct, which outlines our standards for workplace practices and business conduct. This code applies to all levels of our vendors' supply chains, ensuring consistency and reliability. We believe in continuous improvement and regularly assess our vendor relationships to identify opportunities for enhancement. Our risk management strategies include regular updates to our risk analysis tools, continuous monitoring of supply chain risks, and maintaining open lines of communication with our vendors. This proactive approach helps us mitigate potential disruptions and ensures a steady supply of high-quality products.
Sustainability is deeply rooted in our company, and we expect our vendors to share this commitment. We work with our vendors to implement sustainable practices and reduce environmental impact throughout the supply chain. By collaborating on sustainability initiatives, we aim to create a positive impact on the environment and contribute to a more sustainable future.
3. Vendor evaluations
At Arteco, we have developed a robust system for measuring supplier performance. This system evaluates suppliers against a set of parameters to ensure the highest levels of reliability, quality, and performance while minimizing risk. Our tool monitors whether suppliers fulfil their commitments as agreed, with the primary goals of reducing costs, mitigating risks, and driving continuous improvement.
In 2023, we enhanced our system for supplier qualification, selection, and evaluation by placing a greater emphasis on Environmental, Social, and Governance (ESG) aspects. Specifically, the weight of sustainability in the evaluation process increased from 5% to 25%. As part of this enhancement, we introduced additional questions on topics such as emissions management, compliance and ethics, product-specific information, human capital, climate, and supplier qualifications.
Each year, we recognize outstanding vendors who embody our core values and help us achieve significant milestones. These vendors are honoured at a special event, Arteco's Annual Supplier Awards, where they receive prizes and recognition for their contributions.