SABAF . ANNUAL REPORT 2018
Sabaf and supply chain management Risks The supply chain presents different types of risks, which must be assessed
Strategic risks related to a socially responsible approach along the supply
and monitored in order to limit the possibility of damage to the company.
chain (quality of supply, respect for the environment, energy consumption and respect for human rights and protection of workers). The definition of
Risks of external context. Considering that a significant (although not pre-
the criticality level, especially environmental and social, derives from a risk
dominant) portion of purchases takes place on international markets, the
assessment that takes into account the type of process, product or service
Group monitors and manages the risk of instability in supplier Countries.
provided and the geographical location of the supplier. Operational risks: including continuity of supplies, assessed by paying attention to the financial sustainability of the suppliers.
Supply chain management policy THE SA8000 STANDARD AND SUPPLIERS
If the law in force already requires Sabaf to meet the minimum requirements,
In 2009, Sabaf S.p.A. obtained the certification of compliance with the re-
environment and social responsibility management are carried out. In 2018,
quirements of the SA8000 (Social Accountability 8000) Standard and, therefore, the Company requires its suppliers to comply, in all their activities, with the principles of the Standard, as a minimum criterion for establishing a lasting relationship based on the principles of social responsibility. Supply contracts include an ethical clause inspired by the SA8000 standard, which commits suppliers to ensure respect for human and social rights and in particular:
the risk is considered to be lower, otherwise periodic audits relating to quality, class A and B suppliers were analysed to cover 95% of the expenditure. This analysis revealed 20 cases of suppliers considered potentially critical, following which 17 audits were carried out (18 in 2017) from which no critical non-conformities were found but only observations. In connection with non-critical non-compliances, the suppliers were asked to take appropriate action.
avoid the employment of persons below the age established by the standard, provide workers with a safe workplace, protect trade union freedom, comply quired by law will be complied with.
RELATIONS WITH SUPPLIERS AND CONTRACTUAL CONDITIONS
In 2017, Sabaf S.p.A. complied with the updating of the SA8000:2014 stan-
Relations with suppliers are based on long-term collaboration and on fairness
dard and asked all suppliers, bound by contract, to act in the same way and
in negotiations, integrity and contractual fairness and the sharing of growth
comply with the latest version of the principles. During the year, Sabaf S.p.A.
strategies.
carried out a risk analysis of the supply chain in line with the requirements of
To encourage the sharing with suppliers of the values that underpin its business
SA8000 in order to prepare an action plan and monitor the suppliers consid-
model, Sabaf has distributed the Charter of Values in a widespread manner.
ered critical for the purposes of the Standard. The analysis was carried out
Sabaf guarantees absolute impartiality in the choice of suppliers and under-
taking into account the geographical location, the sector to which it belongs,
takes to strictly comply with the agreed payment terms.
the type of business and the importance of turnover with regard to Sabaf.
Sabaf requires its suppliers to be able to renew themselves technologically,
A questionnaire was sent out to verify understanding of the standard and
so that the best quality/price ratios can always be proposed, and favours sup-
assess the social responsibility aspects of each supplier. The replies received
pliers who have obtained or are obtaining Quality and Environmental System
did not show any non-compliance.
certifications.
Failure to comply with or to accept the principles of the SA8000 standard may
In 2018, the turnover of suppliers of the Sabaf Group with a Certified Quality
lead to the termination of supply contracts.
System was equal to 71.7% of the total (70.9% in 2017).
with the law on working hours, ensure workers that the minimum salary re-
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