better together with our suppliers
Our Supply Chain
Steel wire rod is the main raw material used for the manufacturing of steel wire products. Bekaert purchases different grades of wire rod from steel mills from around the world and transforms them into steel wire and steel wire products by using mechanical and heat treatment processes, as well as by applying unique coating technologies. The wire products produced by Bekaert are shipped to industrial customers who further process our material into half or end products; or to end-customers, directly or via distribution channels.
Bekaert has about 20 000 active suppliers of which 52% are delivering into EMEA, 13% in Latin America, 10% in North America and 25% in Asia Pacific.
Steel wire rod represents more than 50% of the total Bekaert spend and is ordered from 120 different vendors. The supply process is managed by the Purchasing function.
Supply Chain Excellence
Bekaert further rolled out its Supply Chain Excellence (SCE) program that was launched in 2016 and covers the total supply chain. The program has the ambition to install a best-in-class demand-driven supply chain, reacting to real-time signals from customers, suppliers and our business. (GRI 102-10)
Building a sustainable supply chain
Bekaert’s purchasing department continued its engagement to enhance sustainability awareness and control with our suppliers. The Bekaert Supplier Code of Conduct outlines environmental, labor and governance related requirements that suppliers shall comply with (or deliver proof of following its principles). At the end of 2017 this supplier commitment represented 82% of spend coverage, compared with 75% in 2016.
The use of Key Supplier Agreements remains very important for the purchase of wire rod and was expanded to the other supply categories. Key supplier agreements are multi-year partnerships in which sustainability, supply chain integration and innovation are explicit building blocks.
All wire rod suppliers as well as suppliers of other critical materials are formally evaluated on a yearly base, and corrective action plans are put in place when the minimum required levels have not been reached. These action plans are closely monitored in order to keep the focus on improvement high. (GRI 308-1 + GRI 407-1 + GRI 408-1 + GRI 409-1 + GRI 414-1 + GRI 414-2)
Responsible sourcing of minerals
Bekaert recognizes the importance of responsible sourcing. In 2017, all suppliers covered by the Responsible Minerals Initiative (RMI), formerly known as Conflict Free Sourcing Initiative (CFSI), signed the Bekaert Supplier Code of Conduct (or delivered proof of following its principles) and 100% of our tin suppliers completed the most recent Conflict Minerals Reporting Template (CMRT). This is an initiative of the Responsible Business Alliance (RBA), formerly known as the Electronic Industry Citizenship Coalition (EICC), and the Global e-Sustainability Initiative (GeSi), that help companies from a range of industries address conflict mineral issues in their supply chain. Bekaert also implemented a Conflict Free Minerals policy.
By 2020 Bekaert wants 100% of its tin and tungsten suppliers to complete the Conflict Minerals Reporting Template (CMRT), formerly known as CFSI template, annually. We will also set up a due diligence structure to comply with the anticipated 2021 legislation changes. (GRI 408-1 + GRI 409-1)
In sourcing raw materials and other supply needs, Bekaert sources locally (i.e. in the same region as where the materials are being processed), unless when the sourcing options are inadequate in terms of quality or cost.
Bekaert supply sources and use by region (regions: EMEA, North America, Latin America, and Asia-Pacific.) (GRI 204-1)