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KONE 2013 | CORPOR ATE RESPONSIBILIT Y REPORT DELIVERY AND SUPPLY CHAIN
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follow-up process. We also run a supplier
scorecard system. It evaluates key suppliers
of direct materials to our distribution
centers and factories as well as main
installation subcontractors within our country
organizations. The scorecards combine
quantitative and qualitative performance
criteria including quality and safety,
cost competitiveness, logistics, technical
competence and service level. We discuss
performance evaluations with suppliers
regularly and initiate corrective actions or
development projects, and conduct follow-up
when performance does not meet KONE’s
expectations.
Supplier Development Program
progresses
KONE launched its Supplier
Development Strategy in 2012 to
extend the drive for delivery chain
excellence to our supplier network.
Its objective is to improve quality,
reliability and manufacturing efficiency
at suppliers, and ultimately improve
KONE’s market position. A total of 181
supplier development projects were
completed in 2013.
Supplier Excellence Certification
KONE’s Supplier Excellence Certification
Program assesses key suppliers’ sites. It considers
environmental and quality management
systems, performance scorecards, and supplier
audit results, among other aspects. ISO 14001
and ISO 9001 compliance are also assessed. We
aim to maintain a supply base that complies
with international quality and environmental
standards as well as those of KONE. In 2013,
100% of KONE’s strategic supplier factories were
ISO 9001 certified and 90% of KONE’s strategic
supplier factories were ISO 14001 certified. We
expect all our key suppliers’ factories to attain
Supplier Excellence Certification.
Read more
about our Supplier Code of Conduct
at
We purchase close to 80% of the components, raw materials, and system supply for new equipment production from
approximately 100 suppliers located close to our production centers.