How BMW achieve supplier transparency

Ensuring environmental and social compliance with suppliers is a declared aim of BMW - but how are they looking to achieve it?

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.

*************************************************

For more insights into Procurement & Supply Chain - check out the latest edition of Procurement Magazine and be sure to follow us on LinkedIn & Twitter

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

*********************************************

BizClik is a global provider of B2B digital media platforms that cover 'Executive Communities' for CEOs, CFOs, CMOs, Sustainability Leaders, Procurement & Supply Chain Leaders, Technology & AI Leaders, Cyber Leaders, FinTech & InsurTech Leaders as well as covering industries such as Manufacturing, Mining, Energy, EV, Construction, Healthcare + Food & Drink.

BizClik, based in London, Dubai & New York offers services such as Content Creation, Advertising & Sponsorship Solutions, Webinars & Events.

Share

Featured Articles

The Global P&SC Awards: One Month Until Submissions Close

Just one more month until submissions close for The Global Procurement & Supply Chain Awards in 2024

Top 100 Women 2024: Andrea Albright, Walmart – No. 6

Procurement Magazine’s Top 100 Women in Procurement honours Walmart’s Andrea Albright at Number 6 for 2024

Evolving Business Needs & Technologies Reshaping Procurement

Companies worldwide are revisiting their approaches to procurement as business requirements and technologies rapidly change, according to ISG's report

Top 100 Women 2024: Alexandra Hammond, NHS England – No. 5

Procurement Strategy

Procurement & Supply Chain LIVE Dubai: One Month to Go!

Procurement Strategy

Top 100 Women 2024: Aurelia Tremblaye, ENGIE – No. 4

Digital Procurement