Building trustworthy partnerships
Sustainability and responsibility is essential when building trustworthy partnerships with suppliers. As a rule, Grundfos only cooperates with suppliers who give top priority to quality, the environment, ethics, flexibility and security of supply. We believe our responsibility goes beyond the sourced products and components, as we are also responsible in relation to the people and the communities we are sourcing from. At this stage, and in terms of responsible supplier management, our main focus is on Group suppliers of direct materials, i.e. suppliers of raw materials, components and other materials used for direct production.
We therefore expect all direct Group suppliers to respect the Grundfos Supplier Code of Conduct, which is based on the 10 principles of Global Compact. However, our ambition is not only compliance: We also want to be considered an active partner, who creates value by inspiring our suppliers to improve within the areas of sustainability and responsibility.
Grundfos expects its suppliers to live up to high standards, while at the same time acknowledging that our suppliers are a source of competitive superiority and key to achieving our strategic business goals. Grundfos follows a set of well-described sourcing processes, which all support our strategic approach towards supplier management. Responsible supplier management is embedded in these business processes, which are managed and supported by Group Purchase. Group Purchase is responsible for all Group suppliers, whereas local Purchase departments are responsible for all local suppliers. However, Group Purchase supports the local processes by offering relevant tools.
Supplier Code of Conduct
In 2008, the Grundfos Supplier Code of Conduct was launched to ensure higher ethical focus and clear communication of our expectations to the suppliers. Grundfos only wants to work with direct suppliers who are willing to comply with our Supplier Code of Conduct and demonstrate responsible sub-supplier management. This is essential for our evaluation of quality, delivery and cost and therefore also for the opportunity to be considered a future partner. The Supplier Code of Conduct is now an obligatory part of the contractual agreement that exists between Grundfos and our suppliers