2006 engagement with suppliers
introduction and first assessment

Interview with Olivier Trancart, Global Sourcing & Purchasing, Supplier Quality Manager

As part of the EICC initiative, we took some concrete steps in the management of our suppliers, sending a complete EICC introduction package to around 120 selected suppliers in August 2006.

The pack contained:

• a letter of introduction explaining our membership of, and commitment to, the EICC
• the EICC code of conduct
• the EICC first level risk assessment tool for each supplier to complete: this was a ‘mock’ questionnaire evaluating their likelihood of non-conformance and the significance of the risk to them of non-conformance.

We monitored the feedback in two sequences:

• 40% response rate by October 2006
• 80% adherence to our EICC-aligned supplier evaluation process, for which we compiled the responses in February 2007.

Overall, the responses from the suppliers were very positive, taking into account their different levels of understanding and maturity in Corporate Responsibility.

From this first phase of risk evaluation, we ranked suppliers to prepare the ground for the second phase, planned for 2007, which is the integration of this subject within management systems, such as in the supplier approval process.

Planned for 2007

A focused assessment phase:

• EICC self-assessment questionnaire to be performed on the fifteen top risk key critical suppliers
• start the audit process with the two highest risk suppliers
• start integrating Corporate Responsibility in all existing management tools
• check all key suppliers against EICC.

Other programs with suppliers in line with the EICC include:

• promoting ISO 14001 and OHSAS 18001 certifications
• annual adherence to ST banned substances policies.