Background
The purchasing policy is needed to define and clarify the purchasing processes within the company, as governance is important for economic, legal, safety and environmental reasons.
Purpose
The purpose of the Purchasing Policy is to set out the main rules for all purchasing activities within ProfilGruppen Extrusion AB (later referred to as the company), so that actions and decisions relating to purchasing conditions best support the company’s objectives and strategy.
Goals
– Streamline the management of our purchases to reduce risk and reduce the total procurement cost.
– By establishing and using established agreements with suppliers.
– By using IT support for efficient management and follow-up.
– Through market knowledge, create competitive purchases.
– Ensure that safety, environmental and health requirements, ethical and social requirements are met in purchasing and that the company’s various policies and code of conduct are met.
Values
– The Company’s core values
(Company Code of Conduct and Core Values) on how we relate to each other and others, form the basis of how we behave when procuring goods and services.
– The Company’s Code of Conduct for Suppliers forms the basis and requirements for being a supplier to the Company.
Responsibilities for purchasing in the company
– The purchasing department has the overall responsibility for all purchasing processes. This means that the Purchasing Department is responsible for how we buy and who we buy from.
– The purchasing department can delegate purchasing areas or parts to other departments within the company. This is done through the applicable authorization rules and the applicable categorization.
– All purchases, both by the purchasing department and delegated purchases to other departments, shall follow this policy.
Basic principles for making purchases for the company
– All employees of the company who make purchases must contribute to and work for honesty, credibility and professionalism in purchasing activities.
– Employees who make purchases must not have other motives for making purchases from a particular supplier than those that best meet the company’s needs.
– Purchases must be made by persons who, through training, experience and instruction on
applicable rules, have the necessary knowledge in the field of purchasing.
– The company pays the expenses of its own employees when traveling to and visiting suppliers in order to avoid a possible dependency on the supplier.
Basic principles for making purchases for the company
– The overall economy should be decisive for the purchasing process. In addition to price, factors such as quality, safety, environment, delivery time, reliability of supply, service and capital commitment should be taken into account.
– All our purchases should preferably be made in writing and through our ERP system.
– Free text purchases, i.e. purchases of items that are not in the ERP system, are made with a purchase request that is certified by the authorizing officer.
Relationship with suppliers
– Everyone involved in purchasing or having contact with suppliers shall handle information on competitive prices and other supplier relationships so that no third party gains undue access.
– Relationships and cooperation with our suppliers are preferably established for longer periods.
However, the supplier group should not be static, so there should always be the possibility of new
competent suppliers.
– Suppliers are classified according to different rankings. A supplier can be:
– Blocked; a supplier where no purchases can be made.
– Released; purchases can be made and are correctly set up in the business system.
– Approved; prioritized supplier that is actively managed by the purchasing department.
IT systems
Administrative support systems should be designed to support secure, timely trading with suppliers, streamline administrative work, ensure accurate and timely reporting and provide necessary information to management and staff.
Environmental considerations
Purchases must be made in accordance with the company’s environmental policy and sustainability work.
Risk and risk mitigation
The company’s purchasing process should strive to minimize the risks that the business has. Contracts (SSG contracts for plant and machinery investments), policies and applicable processes shall be used. These purchasing processes are formalized in our quality management system.
Adopted 2024-09-30 by the Executive Board.