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KONE 2016 | SUSTAINABILITY REPORT
SUPPLY CHAIN
47
Strategic suppliers with
ISO 9001 certification:
97%
Strategic suppliers with
ISO 14001 certification:
93%
Strategic suppliers audited:
93%
All our new suppliers
must sign KONE’s Supplier
Code of Conduct.
human safety, emergency preparedness,
and exposure to dangerous chemicals
and biological substances; and ensuring
that employees are not working under the
influence of alcohol or illegal drugs while
working for KONE.
Environment
– Efforts to reduce the impact
on the environment from operations and
products; compliance with environmental
laws and regulations and obtaining necessary
environmental permits; monitoring, controlling,
and treating wastewater, air emissions, and
other waste appropriately; a systematic
approach to considering environmental aspects;
adhering to any applicable laws and regulations
as well as KONE’s own requirements regarding
the prohibition or restriction of specific
substances.
IPR and publicity
– Compliance with laws
and international treaties on intellectual
property rights; refraining from publication of
information regarding cooperation with KONE
or the use of KONE’s trademarks without
permission.
Monitoring
– Monitoring of compliance with
the KONE Supplier Code of Conduct; provision
of documentation upon request to KONE; the
right of KONE to audit the supplier in case
of a suspected breach of the Supplier Code
of Conduct; and active communication with
KONE regarding non-compliance.
The complete KONE Supplier Code of Conduct
can be found at
www.kone.com/suppliers.Assessing supplier performance
We monitor the performance of our main
suppliers of our direct production materials
through a monthly KPI measurement and
follow-up process. We also run a supplier
scorecard system that evaluates key
suppliers of direct materials. The results of
the scorecards represent a balanced view
of quantitative and qualitative performance
criteria from a number of angles, such as
quality, cost and logistics, for example.
We regularly discuss performance evaluations
with our suppliers. When their performance
does not meet our expectations, we initiate
corrective actions or development projects
and conduct follow-ups.
High-quality production processes
KONE’s supplier development and supplier
quality management function continuously
strives to coach our suppliers to implement
best-practice quality management
methods in their factories. This includes the
implementation of process quality control
points in manufacturing lines to check specific
product and process characteristics that
are considered critical to the end product’s
quality.
When new KONE products or changes to our
products are implemented, KONE’s supplier
operations project managers follow-up the
implementation with the suppliers’ quality and
production managers. This helps ensure that
aspects related to product and process quality
are taken care of and KONE’s requirements
are met from day one. When suppliers make
changes to their products or processes
affecting products delivered to KONE, they
need to inform KONE about these changes.
On a case-by-case basis, KONE’s supplier
quality engineers evaluate what kind of
evidence is requested in order to check that
the change is made in a controlled manner.
Supplier Excellence Certification
KONE’s Supplier Excellence Certification
Program assesses key suppliers’ sites, examining
aspects that include environmental and quality
management systems, performance scorecards,
and supplier audit results. ISO 14001 and ISO
9001 compliance are also assessed. We aim
to maintain a supply base that complies with
international quality and environmental standards
as well as the standards of KONE.
In 2016, 97% of our strategic supplier factories
were ISO 9001 certified, and 93% of them had
ISO 14001 certifications. We expect all of our key
suppliers’ factories to attain Supplier Excellence
Certifications.