Supplier management

In addition to demanding high standards as regards quality, technological expertise as well as performance and competitiveness, the Audi Group expects its suppliers to strictly comply with sustainability requirements.

Managing the supply chain responsibly

Together with our business partners, we assume responsibility for fair and decent working conditions, and for the environment. Audi obtains a commitment from all its suppliers to comply with the “Volkswagen Group requirements regarding sustainability in its relationships with business partners.” Vital components comprise environmental protection, employee rights, fair market practices and respect for human rights – especially the ban on child and forced labor.

With its procurement strategy, Audi is devoting more attention to sustainability in its supplier relationships. Here too, the sustainable procurement of commodities and a duty of care in the supply chain occupy a central role.

In order to maximize the benefit of synergy potential, we select suppliers in close consultation with Volkswagen Group Procurement.

Outsourcing to social institutions

We provide specific support for local social institutions at the Ingolstadt, Neckarsulm and Brussels sites by outsourcing supply contracts to them for assembly-related tasks. Newly developed guidelines enable the optimization of outsourcing processes.

Sustainable supplier management

Before bidding for a contract, suppliers must acknowledge the sustainability requirements that apply to all purchased goods and services, and update this acknowledgment after a period of twelve months when they next submit a bid.

Suppliers are expected to take responsibility themselves. For example, main suppliers are required to implement a certified environmental management system in accordance with ISO 14001 and/or EMAS.

Due diligence along the supply chain

Suppliers of the Volkswagen Group are required to exercise due diligence along their entire supply chain. This includes measures to ensure that the minerals used by the suppliers, particularly tantalum, tin, tungsten, gold and cobalt, do not contribute to the direct or indirect promotion or support of armed conflicts or involve human rights violations.

Volkswagen Group Policy on Sustainable Raw Materials

2 pages, EN

PDF

25.3 KB

Supplier engagement and evaluation

Audi aims to record the sustainability performance of suppliers by means of a sustainability rating. In 2017, Audi started to introduce the rating for relevant first-tier suppliers, to which end it initially focused on the suppliers for the electrically powered Audi. We anticipate rolling out the rating across further suppliers.

The rating is already conducted before the contract is awarded to the supplier to obtain an insight into social, ecological and human-rights-related risks. It is based on an on-site check at the supplier’s place of production along with self-disclosures based on a standard questionnaire of the Drive Sustainability initiative. Through the evaluation, Audi aims to give the supplier an opportunity to identify potential for optimization and make improvements. In addition, looking to the future the aim is to outsource work only to companies that have a positive rating.

Developing suppliers and employees

The Volkswagen Group supports its suppliers with implementing sustainability standards by providing them with an electronic learning module on sustainability (e-learning). It can be called up in all languages of the defined risk countries. This tool can be used both by the supplier’s workforce and by employees of Volkswagen Group Procurement. Employees and suppliers are provided with face-to-face training on the topic of sustainability. Audi Procurement also offers training on the topic of “sustainability in supplier management.”.

Sustainability Report 2017

More about supplier management at Audi in the current Sustainability Report

87 pages, EN

PDF

9.8 MB

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