A systematic approach to inspection
Appropriate processes enable us to identify potential risks in our supply chain systematically. Together with our suppliers, we formulate improvement measures on the basis of the audit results.
Because our supplier network is very large and ramified, it is not possible for us to inspect all suppliers to the same extent by auditing them on site. We have therefore established a system of appropriate processes to enable us to identify potential risks in our supply chain systematically. It consists of Sustainability Self Assessments, a risk evaluation conducted by the buyer, a Sustainability Module as part of Supplier Quality Audits, and Sustainability Audits by external auditors.
Sustainability Self Assessments
Sustainability Self Assessments are an element of our supplier qualification process. In it, our suppliers provide information on the extent to which they comply with the requirements of our Code of Conduct for Siemens Suppliers. For identified risks ("yellow" category: minor deviations; "red": suspected serious deviations) the buyer conducts a feedback dialog with the supplier to clarify the situation. If there is a confirmed deviation from our requirements, corrective measures are agreed with the supplier and we verify that they are implemented.
Risk assessments
As part of our risk assessments, suppliers are evaluated according to a uniform company-wide set of sustainability criteria. Criteria include compliance, social and ethical responsibility, environment, health and safety, and sustainability in the suppliers’ supply chain. The evaluation is performed each year by a cross-functional team.
Sustainability module as part of supplier quality audits
A Sustainability Module is also part of our regular supplier quality audits. The audits are initiated and conducted locally by the respective units. If deviations are discovered for the Sustainability Modules, the Siemens quality auditors agree on improvement measures with the supplier or an external Sustainability Audit is initiated.
External Sustainability Audits
Sustainability Audits are carried out by internationally acknowledged audit firms. By introducing these audits, we have significantly improved the overall system of Detection Modules and further optimized and harmonized procedures.
Handling deviations
Suppliers who are found to deviate from the requirements of the Code of Conduct for Siemens Suppliers are given an opportunity to correct the violation by implementing improvement measures within a reasonable period of time.
Our emphasis is always on the approach of developing partnerships with suppliers and building long-term expertise among them.
As a last resort for particularly severe or repeated violations, we terminate the business relationship or exclude the supplier from any future business with Siemens.
- Suppliers - Management approach
- Overview
- Code of Conduct for Siemens Suppliers
- A systematic approach to inspection
- Transferring knowledge and building competence
- Resource efficiency