Supply Chain

Our suppliers play an important role in representing our brands.

For us, as important as having a business model aligned with sustainability is knowing that our supply chain is also consistent with such goals and aspirations, so we can grow and add value to society.

GFD Program - Dexco Supplier Management

Since 2012, we have maintained the GFD (Dexco Supplier Management) program, which guarantees a structured management process to assess and promote improvements in our supply chain. In 2018, we developed a criticality matrix used as a tool for selecting our strategic partners, in order to ensure that they are in line with our purpose.

The GFD cycle takes place annually, with the support of specialized and independent consulting, and with the objective of engaging and developing suppliers for the best market practices, in addition to mitigating potential risks, stimulating the development of increasingly ethical and responsible businesses. The process includes steps such as sending questionnaires, on-site visits, feedback reports and recognition events, for example. Socio-environmental, economic, compliance and quality criteria are adopted in the evaluation.

Among the main topics evaluated by the GFD are the following topics:

GFD 2021 Results Report
GFD 2020 Results Report GFD 2019 Results Report GFD 2018 Results Report

Protecting and Caring for our Children

We have committed to fighting child, forced, or slave-like labor in the value chain since 2007. We sponsor Childhood Brasil’s Na Mão Certa (In Good Hands) program, whose goal is to do away with sexual abuse and exploitation of children and adolescents in the country’s roads. From time to time, we raise awareness among truck drivers that work for our suppliers so they can act as inspection agents on our roads. In 2018, we broadened our scope and started raising awareness in our communities as well.

Supply Academy

In 2018, we also formed the Supply Academy – Supplier Module to educate and train our partners on sustainability themes deemed strategic to our business and society. These include inclusion of disabled people, safety at work, environmental management, and fighting exploitation of children and adolescents.

Partnered Solutions

Working closer to and more focused on our clients and consumers has allowed us to, more than doing it “for them,” do it “with them.” It is an approach that establishes an ongoing conversation.

Through Client Committees, our brands’ sales areas hold periodical meetings with the purpose of co-creating, adapting, and perfecting our Solutions to Live Better, made available to the market as a result of this exchange of ideas and experiences. Major architecture, finishes, and decoration trade shows also provide opportunities to listen to our audiences.

Wood Supply

Our wood panel manufacturing plants in Brazil are supplied with only certified wood (83% of total supply in 2021) or other controlled sources. In 2021, 83.0% of the total wood used was certified.

Certification is designed to provide credible assurance that the raw material originates from well-managed forests, controlled sources, reclaimed materials, or a mixture of these. Certification therefore facilitates the transparent flow of products made from such materials through the supply chain.

CONTROLLED WOOD

For wood sourced from third parties in Brazil, our due diligence system looks into environmental, land ownership, labor, tax, and social issues of both suppliers and supply areas. All suppliers have their homologation documentation audited before wood is purchased, and on-site audits performed by Dexco’s technicians in each supply unit and link of the chain, all the way to the forest the wood is sourced from. That allows us to ensure the traceability of the raw material we use in our forest-based products. With these processes, we guarantee that the wood used by Dexco does not use:

  1. Illegally exploited wood;
  2. Wood exploited in violation of human and traditional rights;
  3. Wood harvested in areas with threat to high conservation value areas (HCVAs);
  4. Wood from conversion or deforestation areas; or
  5. Wood from genetically modified trees.

When deviations are identified in audits, together, the supplier and Dexco come up with an action plan to correct them. If a serious deviation is found (for instance, lack of environmental license) or if we find too many deviations, the supplier is suspended until the situation is addressed. In case of extremely serious deviations (for instance, forced or child labor), the supplier is removed and cannot continue to supply wood to Dexco.

In 2021, we purchased wood from 40 third-party suppliers, 33 of which directly from forests and seven from sawmills. We performed 163 on-site and documental audits, which resulted in four suppliers being suspended. The deviations found were not connected with conversion of native ecosystems, but with work health and safety documentation. Learn more about the topic in the Company’s Forest Management Plan.