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Orkla is further developing its system for following up suppliers. Pål Eikeland and Per Røhnebæk from Orkla’s central purchasing function.
Foto: Tor Aske Børresen |
As a consequence of Orkla's decentralised structure, responsibility for following up suppliers rests with individual Orkla companies. Nevertheless, in order to strengthen its monitoring of product quality and working conditions in the supplier chain, the Group has found it appropriate to further develop
group-wide systems and working methods. In 2008 Orkla therefore focused on internal improvements at Group, business area and company levels.
Regardless of business area, market or product, Orkla companies require their suppliers to comply with strict quality requirements. These quality requirements are incorporated into supplier contracts and compliance is monitored by means of delivery inspections, product certificates, continuous dialogue and, when necessary, supplier audits. As a consequence of Orkla's international expansion and the increasing quantities of goods purchased from countries in Asia and Eastern Europe, several companies have also incorporated matters relating to environment, health and safety (EHS) and labour rights into their purchasing procedures more actively than before. In 2008, the various business areas improved their procedures for monitoring suppliers and several new improvements were initiated.
Orkla has had ethical guidelines for purchasing for several years, but wishes to incorporate more detailed requirements relating to EHS and labour rights into the Group's standard contracts. This will take place in connection with a major revision of standard contracts that began in spring 2008 and will be completed in the first half of 2009. The requirements are designed to incorporate the provisions laid down in the core ILO conventions, including prohibition against child labour, freedom of organisation, and bans on discrimination and forced labour.