Novozymes has sharpened its focus on integrating sustainability and risk management into the selection and evaluation of key suppliers. In order to identify risks and opportunities in the global purchasing processes, an advanced supplier performance management system has been developed.
Sustainability is a performance parameter in the system and is evaluated alongside commercial and quality parameters. Instead of relying only on supplier self-evaluations, the supplier evaluation process is supplemented with media research, dialog, and the critical insight of Novozymes’ purchasers. The system helps rank and compare suppliers according to risk and opportunity and provides an overview of the global supplier pool. The system is also designed to help the purchasing function identify the suppliers who typically pose the biggest risks. Suppliers with critical issues are subject to further questions or an audit.
As maintaining optimal production is critical for Novozymes, there is a strong focus, among other things, on the reliability of deliveries from suppliers. To safeguard supplies, cooperation agreements have been entered into with a number of key suppliers. These cooperation agreements also help to reduce the sensitivity to fluctuations in the price of raw materials and energy.