Signode has been committed to innovation and providing best-in-class products and services to our customers for over 100 years. Suppliers are an important part of Signode’s success because they help us meet and exceed customer expectations.
At Signode, we seek suppliers who can function as an “extended factory” for our global operations. We look for supply partners who provide us with goods and services that create value for our customers and deliver innovative technologies to give us a competitive edge in the marketplace. By focusing on the following key areas and expectations, Signode expects to achieve continued business success with suppliers, resulting in a mutual benefit for both Signode and its supply base.
- Delivery / Lead-Time / Inventory
- Service / Communication
- Innovation &Technology
- Commercial Value
- Business Continuity
- Suppliers should provide high quality products and services, which are free from defects.
- Suppliers should employ defect prevention methods and tools in their operations, including but not limited to:
- Design Failure Mode Effect Analysis (DFMEA)
- Process Failure Mode Effect Analysis (PFMEA)
- Control Plans and
- Effective durability and reliability testing and inspection to find and eliminate defects.
- Signode expects zero warranty issues with respect to products or services provided to Signode or to our customers. For any breach of warranty, Signode requires prompt root cause analysis and other actions to ensure containment and correction of issues.
- Suppliers should respond promptly to and close gaps identified in any supplier assessments with proposed corrective action plans. Suppliers must demonstrate a commitment to development and continuous improvement of overall capability.
Delivery / Lead-Time / Inventory
- Suppliers should strive for 100% on-time delivery (on the date identified in our purchase order, statement of work or other method such as Kanban) per our routing guides where applicable.
- Suppliers should seek ways to reduce lead times, consistent with Signode’s core business process of producing to a market rate of demand (MRD). Decreasing lead times and being more nimble is important to Signode’s overall success and customer satisfaction.
- Suppliers should seek inventory reduction opportunities in their own operations, as well as in Signode’s integrated supply chain. This may include the following:
- Reduced set up times in supplier operations
- Vendor managed inventory at Signode locations
- Consigned stocking arrangements and
- Review of planned safety or buffer stocks at all locations in the supply chain
Service / Communication
- Suppliers are responsible for ensuring that they clearly understand Signode’s expectations at all times. Suppliers should strive to exceed these expectations in our dealings.
- From time to time, unplanned or unexpected critical issues will arrive and in this regard, Signode expects our suppliers to act with urgency to help solve issues as they occur.
- Signode expects suppliers to use appropriate electronically enabled (“e-enabled”) communications as required by our local units. This may include e-enabled forecasts, purchase orders, supplier confirmation of commitments to on time delivery, ASN’s, invoicing, payments and other e-enabled transactions.
- Suppliers should use safe operating practices to ensure the safety of your employees and others who may visit your facilities.
- Suppliers should ensure their own product designs are free from design issues which may lead to or cause injury.
- Suppliers should use best industry practices to ensure that all services are performed in a safe manner.
Innovation & Technology
- As an industry leader, Signode has a long heritage of innovation. Similarly, we also expect our suppliers to foster and develop innovation of their own. Suppliers should also work with and support Signode as we innovate great products and services for our customers.
- We expect our suppliers to invest in innovation which will improve both their products and their processes. Signode encourages collaboration with our suppliers related to new product development, which will lead to growth in our respective businesses.
- Suppliers are expected to continuously improve the value proposition of goods and services provided.
- Continuous improvement in year-over-year total cost is required of Signode suppliers. Targeted cost reduction expectations shall be communicated by Signode procurement personnel.
- Suppliers are expected to conduct their business in a safe and sustainable manner, consistent with all applicable laws and regulations. These laws include, but are not limited to:
- RoHS, and
- Conflict Minerals
- Suppliers must focus on reducing the overall environmental impact of their activities and related carbon footprint, land filled waste and water usage. Suppliers should aim for a 1% year-over-year reduction in absolute greenhouse gas emissions.
- Achieve ISO14001 certification or meet the requirements of such.
- Suppliers are expected to give back to the communities in which they operate and to be positive community partners.
- Suppliers are expected to support sourcing to capable, competitive diverse “minority or women owned business” sub-suppliers. We also recognize that sourcing locally within communities, where possible, helps create stronger communities.
- Signode expects suppliers to comply with all applicable laws and regulations around the globe, including those pertaining to human rights, as well as environmental, health and safety laws that protect the well-being of employees and laws against slavery, human trafficking and child labor.
- It is incumbent upon suppliers to perform their own business risk assessments to anticipate and mitigate business risk. Minimally, a proactive review of the following risk issues is recommended:
- Propensity for Natural Disasters at site locations
- Management Succession
- Legislative Impacts
- Labor Disruptions or Shortages
- Financial Solvency
- Potential for Disruption within Supplier’s Supply Chain
- Business Ethics and Compliance
- IT Systems effectiveness and security and
- Power interruption potential and impact