How BMW achieve supplier transparency

For any international company with a large supply network, it is a challenge to ensure compliance with social and environmental standards.  The declared aim of the BMW group is to achieve this with particular respect for human rights and the responsible procurement of raw materials. 

Creating transparency

Creating transparency through their far-reaching  supply chains and making goods flows traceable are the most important requirements for them in their published strategy. That is why they are constantly expanding their close cooperation with procurement partners in the supplier network.

They source components, materials and other services from a variety of production and delivery locations worldwide. The social and environmental due diligence obligations associated with this are set out for their suppliers in their contractually binding sustainability standards.

When BMW identifies risks at their direct suppliers, they respond to these with preventive and corrective measures, as well as enabling activities. They do the same for indirect suppliers on an ad-hoc basis, and all of these measures have been systematically anchored in their published processes.

Alongside these strategies, they are also working on reducing the consumption of raw materials and increasing the use of secondary materials.

What is BMW’s Performance Steering Cockpit?

The BMW Group established their PSC (Performance Steering Cockpit) targets for corporate due diligence in the supplier and procurement network that are also factored into manager compensation. They have set the goal of ensuring compliance with sustainability standards at suppliers where there is a potential risk as early in the process as possible, with the help of preventive measures. 

They do this by focusing on the award date and start of production at around 1,300 direct supplier locations for vehicle parts every year and agree on corrective preventive measures to minimise potential environmental and human rights risks. They then use control mechanisms such as certification and audits conducted at the supplier location to ensure implementation.

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Other magazines that may be of interest - Supply Chain Magazine | Sustainability Magazine

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