How to Design a Supplier Code of Conduct for Supplier Qualification

Suppliers’ sustainable business acumen is critical to the success and integrity of sustainable procurement. By developing and enforcing a Supplier Code of Conduct, procurement departments mitigate unwanted risk and support suppliers in maintaining a high level of sustainability integrity. 

Following are important components of a Supplier Code of Conduct: 

• Systematic coverage across all business units and categories,
• Mandatory supplier self-assessment questionnaire,
• Supplier registration process is consolidated in a centralized database and system is linked to sourcing, procure-to-pay and risk modules,
• Complete qualification and due diligence process in place covering all supplier risk and quality aspects against clear internal quality requirements and external standards e.g. industry specific ISO certifications,
• Sustainability fields and data points are mandatory and detailed documentation and proof is requested,
• A dedicated and empowered team is in charge of the validation,
• Absence or incompleteness of sustainability data points blocks the supplier validation and disables the creation of purchase orders.