GRI 204, 308, 407, 408, 409, 412, 414: 103-1, 103-2, 103-3
GRI 102-9, 204-1, 308-2, 412-3, 414-2
Supply
Chain
We encourage our supply chain partners to accomplish, live and believe our vision and philosophy through our supply manual.
Our supply chain is managed through an approach that prioritizes the strength of the business and the reliability we seek to convey to our suppliers. We are committed to raising the levels of safety and continuing to generate value, achieving safe and sustainable growth that promotes an operational infrastructure aligned with our objectives.
In the procurement area of Metalsa we believe in the benefits of a common approach throughout the supply chain aiming to ensure a sustainable development for our industry and society.
Our Procurement area is responsible of all relations with suppliers; it defines applicable terms and conditions of commercial relations. The Logistics area maintains operations running smoothly by communicating all requirements to suppliers so they comply with the production plan.
The main products we purchase are steel, extruded aluminum, fasteners, welding wire, wire forms, metallic stamping parts and chemicals for coating. In addition, we procure the services and spare parts necessary for the business to continue operating.
We aim to engage in long.-term relations with suppliers that work with the same ethics and values as Metalsa. Our supply chain partners must comply with our Supplier Manual, which includes:
Metalsa Code of Conduct
The commercial relationship shall be conducted with integrity, fairness and respect in all countries where we have operations.
Restricted Substances
Suppliers must assure compliance with all governmental and safety requirements on restricted, toxic and hazardous substances used in the manufacture of products.
Human Rights
Businesses should support and respect the protection of internationally proclaimed Human Rights and make sure that they are not complicit in any type of abuse or infringement.
Labor practices
Our partners must uphold freedom of association and the effective recognition of the right to collective bargaining. Furthermore, they must ensure the elimination of all forms of forced and compulsory labor and the effective eradication of child labor, as well as the elimination of any kind of discrimination.
Environment
Organizations are required to support a precautionary approach to environmental challenges and encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Businesses should work against corruption in all its forms, including extortion and bribery.
Through the Metalsa Supplier Business Assessment, we execute a comprehensive assessment of our supply chain. We use it to select new suppliers and follow-up on the existing’s performance. We rate each supplier’s quality, environmental and social practices. If we detect and opportunity for improvement or non-compliance with our guidelines, we request corrective measures so that the relation continues; subsequently, they must be reexamined to ensure they improved.
The questionnaire includes topics regarding quality, employment conditions, human rights, ethics, corporate governance, legal compliance, sustainability, as well as criteria aligned to institutions and standards like International Automotive Task Force (IATF), Automotive Industry Action Group (AIAG), ISO 14001, among others.
During 2020, due to the COVID-19 pandemic, our supply chain suffered stoppages in production and reduced sales. Nonetheless, we managed to maintain timely supplies to ensure our business continuity.
82%
of our direct suppliers were assessed with our MSBA system
102
suppliers of direct material
32
local suppliers