Sustainable Supply Chain
We have a vendor base of over 10,000 suppliers including
reputed manufacturers and trusted brand names, spread
across the country. Our vendors are technically and
financially sound and have the intrinsic capacity to supply
material of the desired quality on time. They are usually
ranked among the top four vendors in their particular
industry segment. We prefer vendors who demonstrate competition in markets. We attempt to build synergy and
long term relationships with our suppliers. To ensure that
they understand and comply with our requirements, we
provide them with training on ethics, anti-corruption and
anti-bribery. These sessions, each of which covers close
to 50 suppliers, are conducted for high risk, high spend
suppliers across all our areas of operation at regional
levels. In the last year we conducted six such training
sessions. Regular interaction with the vendors takes place
through phone, virtual conferences, e-mail or in person.
The key concerns identified are related to quality, quantity
and sometimes payments. Our supplier relationship
helpdesk takes up such concerns with the relevant plants
as soon as possible.

During 2014, Holcim engaged a global consultant, PICS,
to assist in educating existing and new vendors in various
aspects pertaining to OH&S, HR, legal, environmental &
ethical issues as defined in the Supplier Code of Conduct.
It is proposed to continue the same in 2015 and cover
those four to five per cent of vendors who fall in the high
good corporate citizenship and promote sustainable development. The vendors supply material as per our specifications. They are treated as business associates, with respect and dignity. Adequate care is taken to ensure transparency in the procurement processes. Our procurement policy has a clearly defined code of practice for procurement conduct and encourages fair and open risk, high spend category and account for 50% by value of procurement (excluding Government spend).

A high standard of professional conduct is expected from all our suppliers. We also continued our efforts to assess critical suppliers based on their sustainability practices. It has been a challenge to engage with our suppliers, as they do not yet fully appreciate the importance that sustainability can play in improving their businesses. But once they have been evaluated, this information will help us map our suppliers’ practices and will be used to establish corrective action wherever required. Suppliers will receive feedback on their practices, which will allow them to work with Ambuja (and Holcim) on improving their performance. Thereafter they will also be able to grow their businesses.

Optimised sourcing through Central Procurement Organisation (CPO), cost optimisation, engineering and the supply chain are also important levers to improve performance.
The supply chain process of a manufacturing company
constitutes a major part of its operating cost. Apart from
being a prominent cost centre, our supply chain operations involve many key internal and external stakeholders who are affected by Ambuja. Procurement and supply operations involve a large group of multi-disciplined personnel. It is thus important to ensure efficiency and transparency in our oerations. Our corporate and plant compliance equirements. About 600 existing suppliers have been screened through his process. In cases where suppliers are not able to meet these minimum requirements, we engage in a dialogue with them and adopt mechanisms to help them improve their standards. In cases of persistent non-compliance or obvious violation, we decide to terminate these relationships.

Contractual Agreement of Compliance

All our purchase orders or agreements that we enter into incorporate different clauses related to safety, environment management, and corporate social responsibility. We have started the implementation of sustainable procurement through the Supplier Code of Conduct which is meant to provide a clear summary of the Company’s expectations from its suppliers in all procurement dealings. Transparency and accountability should be strictly adhered to in all procurement activities. There are nine listed standards that suppliers are expected to adhere to, in addition to complying with local and national laws and regulations, which are:
  • Occupational health and safety
  • Working conditions
  • Freedom of association and non-retaliation
  • Forced labour
  • Child labour
  • Non-discrimination
  • Environmental regulatory compliance
  • Management of environmental impact
  • Bribery and corruption
Environmental Principles in Procurement

Contractual Agreement of Compliance: All agreements with suppliers, such as purchase orders, purchase agreements, service agreements and frame agreements have to refer to the supplier’s compliance with SA8000, environmental management and legal compliance requirements. With its signature or order confirmation, the supplier accepts and agrees to adhere to these requirements. In the reporting period, around four to five per cent of our new suppliers were screened using environmental criteria.
procurement department ensure that they assess and
contract suppliers whose practices comply with SA8000
and ISO 14000 standards. We have clauses pertaining to
corporate social responsibility (CSR) and occupational
health and safety (OH&S) which are included in the
purchase orders/ agreements. We encourage our suppliers to take up ‘self-assessment’ based on a checklist integrating SA8000, environmental management and legal All Suppliers operating from within Indian territory (national suppliers) are treated as local suppliers. Also, wherever viable, Ambuja considers vendors located in the proximity of its plants.

Our operations are well connected with the manufacturing units and sales units spread across the country. We have local procurement teams to take care of day-to-day purchase requirements. Central Procurement Organisation (CPO) engages in high value purchase of various commodities such as coal, raw materials (gypsum, iron ore and bauxite etc.), capex items, steel and various other essential services. Most of these requirements are directed to CPO and purchases are carried out centrally.