In line with the strategic goal to be the No. 1 customer for each preferred supplier, the procurement team of Sika is committed to the development of strong supplier relationships.
SRM is a structured system for managing all interaction between Sika and its suppliers, that is designed to create and foster closer and more collaborative relationships. The goal of these relationships is creating additional value in terms of quality, cost, innovation, sustainability and reduced supply risk.
Features of Sika SRM
SRM is focused on the act of continuous improvements within the areas of quality, delivery, service, cost, sustainability and innovation which leads to:
- Clearer focus on strategic targets and risk management
- “One voice towards the Sika suppliers”
- Improved supplier performance
- Achieving harmonized, productive working relationships with other functional areas within the organization
- Continuous improvement of customer service, supply, quality, overall cost and material flow
- More efficient and transparent internal processes (e.g. standardization)
- Faster response times (with business partners and customers)
- A long-term supplier strategy
It is the responsibility of the procurement team to manage those business risks relating to the supply of materials, goods and services. Before working with Sika, new suppliers are required to sign the Supplier Code of Conduct, which includes Sustainability, Ethics, and Fair Competition principles.
Suppliers are regularly evaluated by a comprehensive supply risk management process to achieve continuous, uninterrupted material availability, quality, cost competitiveness, and compliance, essential for business success. The process enables the procurement team to identify and analyze potential risks and their impact on the business.
The corresponding findings are incorporated into a risk assessment, along with the suppliers’ self-assessments and data available in the public domain. Based on this type of analysis, specific risks can be prioritized for action and the relevant measures can be determined; such as maintaining safety stocks, and/or securing long-term supply contracts.
A main priority is given to the risks associated with single source materials and continuous efforts are invested to ensure alternative products are continuously sought for, tested and qualified. Where a significant risk is identified, Sika will conduct an audit of the supply company in question to ensure the expected functionality of the latter’s internal risk management system.
Ensuring supply chains is of the utmost importance to the procurement team of Sika, and the company continues to apply this risk management process stringently to ensure that any potential impacts on the company and its customers are mitigated.