Responsible procurement

Every year PostNord purchases goods and services for approximately SEK 19 billion. Risk mapping of suppliers was begun during 2013 to improve our monitoring of compliance by suppliers with the requirements set by the group.

Coordination of procurement

During 2013 the group focused on introducing a category-based work procedure, where buyers responsible for a category work toward synergies and savings together with the relevant parties. The group’s procurement function works together with representatives from each PostNord business area in order to ensure that procurement needs are coordinated.

Qualification of new suppliers

As part of the contracts awarded under LUF/FSVD 1) , potential suppliers are asked to conduct a self-assessment in which they rate themselves on factors such as the environment and quality. Purchasing managers then conduct a supplier evaluation, together with the client.

The qualification process of PostNord’s transportation providers ensures that the supplier meets the group’s specific requirements for transport. PostNord places requirements on certain EURO classes for the supplier’s vehicle fleet, tires and fuel. For machinery, EU standards and special requirements are applied for noise levels. Specific environmental requirements are also placed for other purchases with a significant impact on the environment, such as promotional clothing. Most clothing purchases are from suppliers in Sweden that in turn buy from contracted production units, primarily in Asia and Eastern Europe.

PostNord’s supplier code

PostNord should only sign contracts with suppliers who undertake to comply with PostNord’s supplier code. The supplier code was last updated in December 2012 and includes the requirements contained in the UN Global Compact. The supplier code also requires suppliers to take responsibility for their subcontractors’ compliance with PostNord’s requirements.

Monitoring and compliance

PostNord conducts regular status meetings with transportation providers. Monitoring compliance with the requirements the group imposes for transport providers also takes place through annual audits. The introduction and implementation of annual audits for all PostNord’s major transport providers was initiated by the group in 2012, and this work has continued in 2013. Annual audits include general contract compliance, compliance with PostNord’s specific requirements for transport providers, monitoring of environmental data and monitoring of environmental standards.

For the purchase of promotional clothing from Asia, our suppliers are required to show reports that they have checked their subcontractors. Once a contract is concluded, monitoring takes place through status meetings with the supplier. PostNord’s largest supplier of clothing reports annually to the group on its sustainability work.

Risk classification of suppliers

During 2013 the group began work to identify the risk level of suppliers. Risk classification is based on environmental risks with regard to the sector and purchasing category along with other types of sustainability risks with respect to the country that the goods or services are produced in. The work includes development of a methodology for monitoring identified medium- and high-risk suppliers. PostNord plans to begin work during 2014 to monitor identified medium- and high-risk suppliers with regard to their compliance with the supplier code.

1) Utilities Procurement Act (LUF): Act on Procurement in the fields of Water, Energy, Transport and Postal Services (Sweden). Utilities Directive (FSVD): (Denmark).