Supply chain management 2021

Sustainability in our supply chains

Sustainable business is becoming the standard approach, encompassing responsible supply chains, environmentally friendly procurement, and trust-based supplier relationships.

An integral part of the purchasing & supply chain strategy is the cost- and resource-saving supply of materials and services. To ensure Körber's competitiveness in the long term, sustainability in particular is of central importance for our procurement and supply chain management. When selecting and evaluating suppliers, we pay attention to a wide variety of sustainability aspects in the areas of environmental protection, occupational health and safety, social standards, compliance, and above all human rights.

Upholding human rights, ensuring fair working conditions, protecting the environment, and combating corruption — these are all aspects that are important to us as a Group and we have set them as our standards. The Körber Group’s purchasing department, Group Procurement & Supply Chain Management, plays a key role in turning us into a thoroughly sustainable company. This department can promote innovations together with our suppliers and ensure positive and sustainable structural changes along the supply chains.

The Körber Supplier Code of Conduct is an essential contractual component and describes the minimum requirements for our suppliers with regards to sustainability. Acceptance of the Körber Supplier Code of Conduct is a basic requirement for obtaining orders.

In the event of violations of the Code of Conduct, we reserve the right to terminate the business relationship.

We require all our direct suppliers to comply with our guidelines and standards on human rights and working conditions, to convey them to their employees and to establish them in their upstream supply chains, and to regularly check their compliance. In the event of non-compliance or increased risks, we work closely with our suppliers and jointly develop corrective and preventive measures. Our grievance mechanism enables our employees and external third parties to report suspected human rights violations. 


Our annual purchasing volume is around 1 billion euros.
Over 10,000 suppliers from more than 80 countries supply the Körber Group.

Our sourcing approach
— local and regional

    

This is how we have integrated sustainability into supplier management

As part of the supplier selection process, risks are evaluated with regard to aspects such as procurement category and regional origin in order to assess the sustainability risks associated with a particular procurement endeavor.

An initial check provides information on the integrity and creditworthiness of the potential supplier.

Depending on the planned procurement volume, the selection process is also expanded with the help of independent external information sources.

The platform for all supplier-related activities is the Körber Procurement & Supply Chain Management System "K.Procure".

Self-assessment is an indispensable part of the supplier qualification process.

This includes essential information about the supplier such as general business data, the corporate structure in the areas of technology, production and development, and about existing management systems, e.g. for quality, environment, energy, occupational safety and sustainability.

All suppliers must clearly commit to our Supplier Code of Conduct and accept all requirements contained therein.

The Supplier Code of Conduct describes the minimum requirements for social and environmental standards for our suppliers. In particular, we expect each supplier to comply with human rights in its area of operations and the associated supply chains.

Further sustainability requirements are also anchored in the General Purchasing Conditions.

Ecological, social, and company-related criteria are part of the regular supplier evaluation.

The assessment for sustainability is based on supplier self-disclosures, risk analyses and audit results.

Our suppliers are regularly audited with regard to quality, management systems and, from 2022, explicitly on the aspect of sustainability. The selection and frequency of suppliers to be audited are based on the Business Area's guidelines and the planning of the audit program.

Based on the audit results and assessments, improvement measures are defined in cooperation with the suppliers.

“CO₂ reduction is only possible together with our suppliers”

Michael Stietz, Head of Group Procurement & Supply Chain Management, talks about the collaboration with the suppliers and the role played by Procurement with respect to sustainability at Körber.

Michael Stietz is the Senior Vice President & Chief Procurement Officer at Körber AG. He is responsible for the management and development of corporate procurement and the strategic orientation of the supply chain management function. He and his team work with around 10,000 suppliers in 80 countries.

Mr. Stietz, why is sustainability so important for Group Procurement & Supply Chain Management?
At Körber, around 50 percent of the Group’s operating output is purchased. This means that a large part of the CO2 emissions comes from our supply chains. If we as Körber want to make a significant contribution to CO2 reduction, we can only do so with the involvement of our suppliers.

What options does Körber Procurement have to reduce the Group's carbon footprint?
Procurement plays a key role here. There are various options for actively controlling the internal reduction of the carbon footprint by tackling it as a team together with our suppliers. For example, we can influence materials through supplier innovations in the product development process or use mobility concepts to align our supply chains with sustainability aspects.

How does Körber position itself in this regard?
For example, in this area we have adapted our overall supplier management and the associated procedures for registration, qualification, the awarding of contracts, and supplier auditing.

For us, the topic of sustainability is a critical factor of success, so we consider it important that our suppliers internalize this as well. Together we discuss specific measures to reduce CO2.

Learn more about our path
to more sustainability:


energy_savings_leaf
We reduce our energy consumption and become CO₂-neutral by 2025.
to enivronment
people
We are a fair and attractive employer.
to social
hub
We have responsibly organized supply chains.
to governance

Körber Sustainability Report 2021

All information at a glance: Download the Körber Group Sustainability Report as a PDF here.

Download PDF file (11 MB)

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