The requirements toward our suppliers are embedded in the Supplier Management Process.
As part of the supplier classification and qualification process, potential suppliers are first identified, and a subsequent selection process is used to decide whether the company should be included in ams OSRAM's global supplier network.
In addition to business, product-specific and formal decision-making criteria, this process also considers sustainability-related requirements such as human rights due diligence and environmental protection in order to ensure the alignment with the ams OSRAM Code of Conduct.
These requirements, which are reviewed on a yearly base, depend on the material sourced, the country in which it is sourced, and the volume purchased from the suppliers. The fulfillment of these requirements plays an important role during the selection process and provides the supplier with a higher classification in the initial phase e.g., preferred supplier.
Some of the requirements are as follows:
- - Suppliers from countries where social risks are more acute ( acc. to RBA) must submit a self-assessment on relevant aspects of corporate responsibility
- Suppliers of production materials must demonstrate in the selection process that they are certified in accordance with environmental management norm ISO 14001 and comply with the EU RoHS Directive (Restriction of Hazardous Substances in electrical and electronic equipment) and the EU REACH Regulation (Registration, Evaluation, Authorization and Restriction of Chemicals).
- In the qualification phase for automotive suppliers from whom materials are to be purchased directly, the suppliers undergo a process audit as prescribed by VDA 6.3 (German Association of the Automotive Industry). The audit assesses the supplier’s production and service processes.
- Compliance with RMI Conflict Mineral approach
- Applicable suppliers shall disclose information on the carbon footprint using specific questionnaire in Integrity Next platform.
- Regardless of the materials or services they intend to provide for us, prior to being accepted as a supplier of ams OSRAM these companies are checked against international sanctions lists. Updated lists are automatically uploaded to the export monitoring systems and serve as a basis for also checking existing suppliers every time an order is submitted and before every payment run.
- In the process of selecting suppliers for energy-intensive equipment, anticipated energy consumption and the associated CO2 emissions are already taken into consideration in the total cost of ownership calculation (TCO). Cost savings over the entire period of use, such as energy savings, are therefore factored into the decision to buy.
If a potential supplier successfully makes it through this selection process, it is added to ams OSRAM’s supplier network and, as such, continues to undergo regular monitoring. For more information, please visit our training and supplier requirements site.