The supplier evaluation process ensures that each supplier is assessed fairly and transparently against the company's criteria for sustainability and responsible business practices.
The following is an example that you can use as a reference for your company.
Step 1: Pre-Qualification Screening
Initial Questionnaire: Prospective suppliers complete a pre-qualification questionnaire covering key sustainability, ethical, and operational practices.
Documentation Submission: Suppliers submit supporting documentation, including certifications, sustainability policies, and reports on environmental and social performance.
Step 2: Scoring and Criteria Weighting
Each criterion is assigned a specific weight based on its importance to Greenly's goals. For instance:
Environmental Criteria: 35%
Social Responsibility: 25%
Governance and Integrity: 20%
Operational Reliability: 20%
Suppliers are scored on a scale from 1 to 5 for each criterion, where:
5 = Exceeds expectations with substantial sustainability practices and certifications.
4 = Meets expectations and demonstrates significant commitment to sustainability.
3 = Meets basic requirements with room for improvement.
2 = Partially meets requirements but lacks sustainability initiatives.
1 = Fails to meet requirements.
Suppliers must meet a minimum threshold score in each category to advance in the evaluation process.
Step 3: In-Depth Assessment and Site Visits (as needed)
Sustainability Assessment: High-potential suppliers undergo a more detailed review, including the verification of sustainability claims, analysis of emissions data, and examination of labor practices.
Site Visits: For critical suppliers, Greenly may conduct site visits to verify compliance with sustainability, labor, and safety standards.
Step 4: Risk Assessment
Risk Evaluation: Suppliers are reviewed for any potential risks, such as supply chain disruptions, non-compliance with environmental regulations, or reputational risks.
Remediation Plans: If risks are identified, suppliers must submit a corrective action plan, which Greenly will monitor to ensure timely improvements.
Step 5: Approval and Onboarding
Final Review and Approval: The supplier’s overall score, risk profile, and corrective actions (if any) are reviewed by the Greenly sustainability teams.
Contract Signing: Approved suppliers are asked to sign Greenly’s Supplier Code of Conduct, agreeing to comply with sustainability and ethical practices.
Onboarding and Initial Evaluation Period: New suppliers undergo a probationary period during which performance and adherence to our standards are closely monitored.
Step 6: Ongoing Monitoring and Periodic Review
Annual Review: Each supplier is reassessed on an annual basis, including updates on sustainability initiatives, any changes in certifications, and performance against set criteria.
Continuous Improvement Dialogue: Greenly maintains regular communication with suppliers to encourage ongoing improvements in sustainability practices and innovation.
Termination Clause: Suppliers that fail to meet sustainability standards or violate the Supplier Code of Conduct may be subject to phased disengagement or contract termination.
We invite you to have a look at the Supplier Selection Criteria that we created.