Management approach & targets

PwC HR 9, HR 10, DMA, EN 32, EN 33, EN 34, LA 14, LA 15, LA 16, HR 11, HR 12, SO 9, SO 10, SO 11

The Supplier Code of Conduct forms the basis for supplier relations and is an integral component of our contracts with suppliers. The Code places our suppliers under obligation to observe the strategic goals and values of Deutsche Post DHL Group and to ensure that their own business partners and subcontractors adhere to our standards as well.

We select our suppliers and transport service providers by way of a multi-step evaluation system. To improve both the quality and the objectivity of this process, we also look at external supplier evaluations and define appropriate thresholds.

We focus on strengthening existing contractual relationships with our suppliers. Our aim is to heighten their awareness of our standards, enabling us to maintain a lasting partnership with them. The most important informational material is provided to the suppliers in their own languages.

We also instruct and inform our employees, taking every opportunity to sensitize them to the risks that can arise in the procurement process. We regularly revise our training offerings and review our procurement policy as part of an ongoing process to ensure that our employees have access to the latest information. To ensure that they are familiar with our expectations for policy-compliant dealings regarding corruption and anti-competitive behavior, complianceThe adherence to laws and regulations, standards, company policies and self-commitments. training is mandatory for all our procurement staff.

KPIs & targets

PwC

A rigorous and sustainable supplier management system also plays a vital role in the business success of Deutsche Post DHL Group. We have thus defined requirements and targets for the key areas shown below. We do not disclose internal management parameters as this is sensitive business information.

Areas and focus
Area   Requirement   Focus 2016
Supplier Code of Conduct   Check for completeness and currentness   The revised version was rolled out and provided in the most important languages used by our suppliers
Supplier management   By 2020, develop supplier evaluation criteria and define minimum thresholds   Procurement platforms harmonized and improved
Corporate Procurement Policy   Include environmental and social standards in the supplier selection process as a binding selection criterion and roll out revised version   In addition to the existing screening process, independent, third-party supplier assessments are also included in the selection process as of 2016
    Focus 2017
Supplier Code of Conduct   Employee training   All procurement staff to be trained in the newest version
Supplier management   By 2020, develop supplier evaluation criteria and define minimum thresholds   Intensify contact with strategic suppliers and recognize their performance through our Supplier Award
HR development   Sensitize and train employees, enabling them to act as role models for ethically correct behavior   Certify 50% of procurement employees under the Certified initiative
Corporate Procurement Policy   Include environmental and social standards in the supplier selection process as a binding selection criterion and roll out revised version   Review policy and draw up measures