Low-cost country suppliers

ASSA ABLOY suppliers in selected low-cost countries are listed, graded and tracked in a supplier database. The database ensures transparency and that the purchase organization has access to consistent information about the suppliers’ performance.

The supplier database is available on the Group intranet for access by selected ­purchasers. Confidentiality is ensured by assigning user rights and by limiting updating rights to accredited and trained administrators.

The database enables several key performance indicators to be followed up and is an important means of identifying and developing preferred suppliers.

 Scoring Principles – The Traffic Light System

Audit scores are linked to a color-coded system in which green means that the supplier is accepted, yellow that improvements need to be made within a specific time frame and red that the supplier is rejected.

Both red and yellow statuses can be revised based on evidence of a corrective action plan, well-documented progress and firm commitment from the supplier. Contracts with suppliers may be subject to termination in case of non-compliance that is not remedied within an agreed time frame.