Monitoring performance

Our supplier evaluation procedure requires that comprehensive on-site audits of all our high-risk category suppliers be conducted at least once every four years. Medium risk suppliers are audited at the start of the business relationship and refresher audits are planned if there are any significant changes at the supplier. The auditing process will be further extended to regional and local suppliers in 2009.

In 2008,  our supplier audit programme covered 28 manufacturing sites at 27 different global suppliers. These audits included elements of safety, health, environment, corporate responsibility and security of supply. High-risk categories such as active pharmaceutical ingredients, formulation and  packaging and complex chemicals were a particular focus.

Within the scope of the audit programme, a critical deficiency in a known high risk R&D-area (hydrogenation) was identified at a proposed supplier. The supplier acknowledged the audit feedback, decommissioned the facility and replaced it with a facility of an appropriate standard.

During the year, our supplier evaluation process was updated to also include product security comprising elements such as information security, logistics and waste handling related to packaging operations. We have also strengthened the social elements of the evaluation process in recent years, particularly in relation to human rights and labour standards, given our expanding presence in emerging markets.

The audit process is also being modified in response to evolving legislation both in the EU and globally, for example the recently introduced REACH (EU chemicals policy) legislation and the EU Packaging & Packaging Waste Directive (94/62/EC).

Audit training continued during the year, with nine more people joining the audit team.  We also conducted a focused “Ethical Auditing” auditor-training programme as a part of the implementation of the new supplier evaluation process.  Training will continue during 2009.

The content of this page was externally assured by Bureau Veritas, February 2009.