Since 2012, Dexco’s Supplier Management Program seeks to promote a Responsible Supply Chain through assessments, visits, and encouraging suppliers to adopt sustainable practices across Dexco’s supply chain. Since its inception, the program has already performed 1,200 independent assessments, 224 on-site audits, and 50 remote visits to nearly 500 Dexco suppliers, in annual assessment cycles. See below the program’s timeline:
First self-assessment questionnaires sent out
24 visits performed
84 participating suppliers and 31 visits performed
117 participating suppliers and 30 visits performed
125 participating suppliers and 32 visits performed
145 participating suppliers and 31 visits performed
156 participating suppliers and 31 visits performed
191 participating suppliers and 31 visits performed
192 participating suppliers and 34 visits performed
208 participating suppliers and 30 visits performed
The GFD encompasses a structured management process defined by social-environmental, economic, and compliance criteria, whose goal is to create synergy and share Dexco’s purpose with its suppliers. The program is one of the company’s main tools to manage its relationship with suppliers and serves to mitigate risks related to the value chain and also foster increasingly more ethical and responsible businesses.
In 2017, Dexco structured its Sustainable Purchasing System to map out its chain and prioritize different purchasing categories. This way, it was possible to conduct specific actions for each category, considering how critical they were and identifying facilitators.
This system allows an annual selection of suppliers that participate in the GFD based on a criticality analysis that looks into, on one side, Category Relevance, considering: production/productivity cut; impact on product; and impact on cost. On the other side, Sustainability Risk, considering: exposure and incidence of social-environmental problems; co-responsibility (probability); reputation (probability).
The chart below shows the rationale behind the criticality matrix of Dexco’s supply chain:
