Responsible business plan: Working with suppliers
We are committed to integrating AstraZeneca ethical standards into our procurement activities and decisions worldwide.
Continue to monitor compliance through our ongoing assessment programme with focused on areas experiencing highest challenges.
Proactively address challenges with our suppliers and promote improvement though collaboration.
Continue rollout of audits across different categories.
Continue to analyse audit outcomes and resultant risk profile to continuously improve how we implement and monitor our Responsible Procurement standards with our suppliers.
Number of supplier risk categorisations undertaken.
Number of audits completed by geographic region.
Number of suppliers removed from supply chain due to non compliance.
Number of improvement opportunities completed.
5,661 supplier risk assessments conducted since the start of the assessment programme in 2009.
Audits by geographic region. 482 audits in total:
- Asia Pacific 143
- Europe 182
- Americas 129
- Middle East & Africa 28
8 suppliers removed from supply chain.
43% of suppliers audited demonstrated standards that met our expectations with a further 53% implementing improvements to address minor non compliances. 4% of suppliers audited this year will require significant follow up to confirm they meet our expectations.
249 improvement plans completed.
Since the programme began in 2009, we have completed 5,661 assessments of new and existing suppliers, which accounts for approximately two thirds of our third party spend.
We categorise suppliers as high, medium or low risk. We focus our auditing efforts on high and medium risk rated suppliers but we also audit some suppliers that we consider to be lower risk, to confirm our performance expectations across all suppliers we do business with. In 2012 we continued our audit activity with 482 audits across 52 countries (751 audits in 2011).
43% of suppliers audited demonstrated standards that met our expectations with a further 53% implementing improvements to address minor non compliances. We monitor progress across all corrective actions and 4% of suppliers audited this year will require significant follow up to confirm they will make the improvements we require. We will not use suppliers who are unable or unwilling to meet our expectations in a timely way. During 2012, we removed 8 suppliers from our supply chain (representing 0.5% of suppliers included in our monitoring programmes over the past two years).
Our suppliers are consistently demonstrating high adherence to labour standards and laws, while the most frequently occurring challenges are in the areas of fire detection and protection systems, management and monitoring of second tier suppliers and the introduction of transprent and complete anti-bribery and data privacy controls.