Global procurement
We employ a performance-oriented — as well as partner-based — approach in our dealings with suppliers, whereby we focus on the four value drivers of quality, technology, costs, and logistics. Social and environmental aspects are taken into account here as well, of course.
Our philosophy of cooperation with suppliers is based on mutual expectations and obligations: We understand that in order to achieve our goals, we need to work with reliable partners who share our view of sustainable cooperation. On the basis of the four value drivers mentioned above, we assess the performance of our suppliers using our globally standardized External Balanced Scorecard, which converts our strategic goals — the global concentration of procurement volumes and thus the efficient shaping of processes, the operative and strategic management of our global supplier base, and the sustainable further development of an effective and efficient procurement organization — into measurable indicators. As a result, both our procurement employees and our suppliers are able to carry out objective comparisons. Our expectations regarding ecological and social issues are formulated in our sustainability guidelines for suppliers. Key aspects here include the development of environmentally sound materials, utilization of environmentally friendly production methods, and respect for human rights.
Daimler communicates its principles and guidelines for suppliers at the Group’s Global Supplier Portal. The approximately 40,000 registered users of the portal also have access to online software applications, such as those for exchanging documents or evaluating suppliers. In addition, users can obtain all information relevant to their business relationships with the Group.
Our expectations regarding our suppliers with respect to the issue of diversity are also stated in our Sustainability Guidelines. We categorically reject discrimination in any form, for example on the basis of race, gender, religion, age, or political beliefs. However, diversity means even more to us than that, and we’ve been nurturing it at the Group for a long time now. For example, we have been cooperating successfully with workshops for the disabled for more than 30 years. In South Africa we support the “Broad-Based Black Economic Empowerment” initiative, an economic development program that directly benefits disadvantaged groups, and are implementing related measures. Daimler also expects its suppliers to increase their procurement volumes from minority-run companies.
Cooperation in difficult times. The earnings situation at many automotive supplier firms deteriorated sharply last year. We take our responsibilities here seriously. Within the framework of our supplier risk management system, we have therefore established processes aimed at not only identifying suppliers that are encountering financial difficulties but also stabilizing the situation. In some cases this is being done in cooperation with other automakers.
