Cooperation with subcontractors and raw material suppliers is a key part of Lappset's success. More than half of the Group's net sales are generated through acquisition costs as direct purchases of materials and services. Supplier audits form an integral part of our sustainability actions.
“It goes without saying that developing and maintaining procurement-related trade relationships is a very important part of the whole, especially in these exceptional times. Together and in cooperation with our suppliers and subcontractors, we have managed to avoid shortages of raw materials and components, and thus maintain the high level of security of supply that is important to our customers. Thanks are also due to our procurement network,” emphasizes Reine Karlsson, VP, Procurement.
Auditing is collaboration and mutual learning
The selection of reliable and responsibly operating suppliers and the development of the supplier relationship are at the heart of the work of the Group's procurement team. Products and services procured for Lappset are monitored through regular supplier audits to ensure that the required criteria are met.
“Audits are focused on the largest suppliers and critical components according to the value of the acquisition. We want to ensure that all purchases and purchases related to Lappset's operational needs receive timely and high-quality delivery. Responsibility issues are a key part of our audit activities in accordance with the procurement responsibility criteria defined in 2014,” Reine Karlsson continues.
Auditing is much more than just looking at details. In the context of a joint review of activities, new ideas often emerge, which is perceived as rewarding on both sides.
“Many suppliers have in-depth and deep expertise as well as long experience in their own industry, which means that the information they have from a supplier customer is transmitted confidentially to Lappset. Audits serve mutual learning.”
Content and coverage of Lappset's audit programme
The annual audit plan includes internal and external audits as well as audits performed by suppliers and customers. Tuomo Vaarala, Global Sourcing Quality and Sustainability Manager, is responsible for Lappset's procurement audit plan and its progress in cooperation with colleagues responsible for the procurement category. The goal for the current year is to audit more than 50% of the procurement volume.
“Where possible, audits will be conducted on-site. The travel restrictions caused by the Covid-19 epidemic have prevented the previous plan from materializing as such. We have made a smooth transition to remote auditing by reforming our previous operating method to be suitable for remote auditing,” says Tuomo Vaarala.
The audit examines themes in line with quality, environmental, social, ethical and sustainable development. A detailed report and any discrepancies that may have arisen are recorded from the supplier's responses and the findings collected. For deviations, the target time for corrective action is recorded.
Sustainability and responsibility are an integral part of audits
Sustainability and responsibility are practical choices and actions that need to be considered throughout the product's life cycle.
“Audits place more emphasis on accountability and social as well as ethical aspects. The plan also includes auditing the main suppliers of the subsidiaries as well as some of the domestic installation suppliers.” Tuomo Vaarala says.
(ESG stands for Environmental, Social and corporate Governance.)
For more information, please contact:
- Tuomo Vaarala, Global Sourcing Quality and Sustainability Manager, email@example.com