We assess new and existing suppliers for compliance with our Code of Ethical Purchasing. Our supplier qualification system, used by Group and local operating companies, makes our CR expectations clear from the first point of contact a supplier has with Vodafone.
All our suppliers are subject to the same strict risk assessment and evaluation processes. This includes suppliers of products that are new to Vodafone, such as modems for broadband connection.
Risk assessment
We carry out risk assessments for all new suppliers to identify those that are high-risk and will require follow up on-site evaluations. Our qualification risk index is determined by our potential spend, the product or service supplied and the degree of association with our brand and customers. It also takes into account the position of the country where the supplier is based on the Freedom House Index on political freedom and the Transparency International Corruption Perception Index.
Site assessments
We use site assessments of selected potentially high-risk new and existing suppliers to identify potential areas of non-compliance with our Code of Ethical Purchasing. See Performance 2007/08.
Our supplier performance engineers are also trained to spot any obvious non-compliance with our CEP, such as unsafe working practices, whenever they are on site for other visits related to quality, delivery or performance.
Scorecard evaluations
We continually monitor the performance of strategic suppliers using a scorecard in which CR accounts for 10% of the overall evaluation score. The scorecard evaluates:
- acceptance of our CEP
- management systems for employee welfare
- management systems for environmental management
- management of CR in their own supply chain
- CR reporting activities and stakeholder transparency
- proactive approach to CR with Vodafone.
Vodafone's supply-chain teams review the requirements and scores, and request supporting evidence from the supplier’s account manager, usually at half-yearly intervals.
E-TASC
Suppliers in China must register on the industry-developed Electronics Tool for Accountable Supply Chains (E-TASC) as part of the qualification process to become a supplier to Vodafone. We plan to extend this requirement to suppliers in other regions as E-TASC becomes more established. See working with industry.
Climate requirements
We plan to include targets and requirements in our existing scorecard process on suppliers’ measurement and reporting of their carbon footprints as part of our work with the Carbon Disclosure Project Supply Chain Leadership Collaboration (see working with industry).