Our suppliers are an extension of our operation and it is key that our suppliers are fully committed and able to meet our stringent requirements for quality, compliance, sustainability, health, safety and environment (HSE) and business ethics. To secure this we have a thorough supplier qualification process, divided in two main parts:
- Company qualification (who we buy from)
- Product/service qualification (what we buy)
Only suppliers that pass both these process steps can supply to us. Our suppliers must comply with our requirements and standards, while being committed to making continuous and sustainable improvement in a transparent way.
A complete qualification is achieved with a company qualification plus the product or service qualification. The company qualification qualifies the supplier as a whole and ensures that their standards are meeting our requirements.
Supplier Qualification is completed through our SAP Ariba collaboration platform and some suppliers will also be audited on site or remotely. In general, all suppliers must be qualified however some low risk and/or low spend suppliers are exempted from parts or all of the qualification process as long as they are committed to our safety, integrity and quality principles.
The qualification process is an integral part of our supply base management process and it is the entry point for suppliers and contractors who want to deliver products and services to Hitachi ABB Power Grids and its customers. Our target is to have a fully qualified supply base, where we can be sure that every supplier and contractor working with us is fulfilling all our requirements.