SABAF - ANNUAL REPORT 2012
Social and environmental Sustainability
77
Supplier relations and contractual terms Our relations with suppliers aim for long-term partnerships and are based on business integrity, propriety and fairness, and on shared growth strategies. In order to share with suppliers the values underpinning its business model, and to foster complete transparency and reciprocal knowledge, Sabaf has distributed its Charter of Values extensively and periodically sends suppliers its “Sabaf Magazine” newsletter. Sabaf guarantees total impartiality in supplier selection and undertakes to adhere strictly to the agreed payment terms (to date, except in rare and justified
cases, all contracts have been paid as per agreements). Sabaf requires its suppliers to upgrade their technology so that they are constantly able to offer the best value for money. It gives preference to suppliers who have obtained or are in the process of obtaining quality and environmental certification. In 2012 sales to Sabaf Group by suppliers with certified quality systems accounted for 54.7% of the total (vs. 54.2% in 2011).
Breakdown of purchases by category 2012
2011
(Amounts in €‘000)
Sales
%
Sales
%
Raw materials
24,625
27.1
30,514
28.3
Components
20,786
22.8
25,699
23.9
Machinery & equipment
4,786
5.3
4,722
4.4
Services
40,785
44.8
46,787
43.4
Total
90,982
100
107,722
100
For small suppliers, we have agreed very short payment terms (mainly 30 days).
Litigation There are no significant lawsuits pending with suppliers at end-2012.