The impact that companies have is multiplied through their supply chain. In the case of multinationals, this can involve thousands of companies in different sectors and countries. This is the reason for the importance - and difficulty - of guaranteeing responsible management throughout all parts of the chain
Responsibility in the Supply Chain
At Telef√≥nica we actively promote responsibility in our supply chain.
Our Action Principles drive us to make a commitment to sustainability in the entire process of our relationship with suppliers:
Our Purchasing and Business Line teams are aware of the sustainability criteria and the benefits of responsible action in the supply chain
We inform and evaluate our suppliers on the content and goals of our Principles and Policies, in order to guarantee that we all share the same vision
We make sure our suppliers fulfil current local legislation, encouraging them to be proactive and go one step further, taking more demanding legislation into account in this field
We promote training programmes and the ongoing improvement of our suppliers, based on our previous knowledge and their performance
We encourage our suppliers to carry out action of this kind in their own supply chain, in order to multiply the positive impact on social, labour and environmental aspects
Our commitment to sustainability in the supply chain is specified at two different levels:
Internally, this is translated into internal standards such as the Extension of Action Principles in the Supply Chain Regulation, Purchasing Instructions, Corporate Control Regulations and Environmental Requirements for Suppliers, where we set forth the processes, indicators and tools to follow up on suppliers‚Äô performance.
And externally, we have the Supply Chain Responsibility Policy, which details the attitude and standards we expect from suppliers. It is also an awareness tool, which helps us encourage sustainable behaviour.
Metals of conflict
Our commitment to responsibility in the supply chain is completed by specific statements and positioning on matters which could affect the fulfilment of the Action Principles in the supply chain. For example, we are totally against the use of certain metals (tantalum, tin, tungsten and gold) obtained in areas of conflict where human rights are violated and the environment suffers. Telef√≥nica does not directly acquire these kinds of metal, although some of the finished products in purchases might contain small amounts of them. Furthermore, we encourage transparency and the traceability of these materials throughout the supply chain.
Telef√≥nica forms part of the Public-Private Alliance for Responsible Minerals Trade or PPA), set up by the Under-Secretary of State for Democracy and Global Affairs of the United States with private companies and trading associations, civil society and the International Conference of the Region of the Great Lakes.
The PPA aims to break the link between the mineral trade and armed groups in the Region of the Great Lakes and especially in the Democratic Republic of the Congo. The Alliance promotes initiatives oriented towards guaranteeing traceability and due diligence throughout the supply chain. It also benefits and consolidates previous projects by different organisations with a smaller scope, such as the iTSCi project, which Telef√≥nica joined two years ago.
At Telef√≥nica we carry out regular evaluations of our suppliers‚Äô risk level, in accordance with their geographical location and the product or service they supply, in order to define a strategy for the risk detected:
In 2011 the suppliers identified as high risk belonged to the following categories: in Europe, terminal and network infrastructure equipment manufacturers, and in Latin America, contracts and call centres, both technical and commercial.
Bearing in mind the most critical risks and the information provided by suppliers for prevention, we carry out audits on their premises to ensure that they meet the minimum labour, ethical, environmental, safety and health requirements; and help them to improve.
Likewise, as founder members of GeSI (Global e-Sustainability Initiative), we encourage the use of E-TASC among our main suppliers, a self-evaluation tool that enables a homogenous and unique evaluation of suppliers by all underwritten contract winning companies.
We also have an Integral Ally Management Model, implemented in collaborating companies in Latin America to promote their development at the same time as we ensure their fulfilment of labour regulations, contractual obligations and in general Telef√≥nica‚Äôs Action Principles.
Other innovative aspects such as energy efficiency receive special treatment. Energy efficiency criteria for network products have been incorporated into the contract-winning process and we are working on the homogenisation of criteria and prices for purchasing energy.
All these lines of action are completed by training initiatives to generate a culture of sustainability that enables employees, suppliers and collaborators to share the same vision and apply the same values and principles to maximize our contribution to society.
Likewise, we collaborate with other organisations such as Green Choice Alliance, OK International and Forum Empresa to advance jointly in the responsible management of the supply chain.
Telef√≥nica's model for relationships with our suppliers is based on transparency in negotiations, objectivity in decision making and equality of opportunity.
E-commerce tools have an ever greater role to play in the Purchasing Model. In 2011, 91% of purchasers were made using e-commerce systems, and our objective is to manage all operations (negotiations, contracting, orders, invoicing, etc.) in this way. Furthermore, over 18% of purchases were made through electronic auctions.
Would you like to be one of our suppliers?
Telef√≥nica has thousands of suppliers located in over 80 countries, with the subsequent contribution to the productive system.
Our purchasing volume exceeds 27,295 billion Euros and we work with over 14,500 local suppliers.¬†
In order to become part of Telef√≥nica‚Äôs supplier catalogue there is a registration process that is available on the SupplierPortal.
You can also consult information about our purchasing model and the electronic tools we use.