Procurement
The role of our Procurement Department is to support production processes through ensuring a sustainable and reliable supply chain to provide goods and services at the right time, at the right quality and at the right cost.
Our suppliers are an essential part of the company's business performance. We therefore not only extend our standards of efficiency, quality and innovation, but also demand the same level of commitment to transparency and sustainability, with a focus on integrity and compliance.
Our supply chain consists of suppliers of goods and services that support a manufacturing environment. All suppliers are carefully selected based on the requirements and demand from our Columbus business units.
We strive to de-risk our supply chain to ensure the reliability and continuity of supply to support our operations. To achieve this, we analyse our supply base and ensure that sufficient supply sources are available for all goods and services.
We maintain a fine balance of sourcing from local suppliers and large suppliers based on the capabilities and supplier profiles that are aligned with the Columbus objectives. Supporting our local suppliers is important to maintain good community relations in the geographic area where our employees make a living.
We are committed to ethical procurement processes and maintain a strong corporate governance oversight of all our processes. We expect our suppliers to commit to the Acerinox Code of Conduct.
2023 Numbers
>1 400
Active Suppliers
ZAR 10.8 bn
Annual Spend
86%
Local Suppliers
Direct and General Procurement
Our purchases are divided into direct and general procurement. Direct procurement includes raw materials used and directly integrated into the final product delivered by Acerinox. General procurement includes all those services and products that are used to manufacture the product.
RESPONSIBLE PROCUREMENT
One of Acerinox's strategic objectives is for its business activity to be compatible with the protection of the environment and the development of a sustainable society for future generations, thus aligning itself with the Sustainable Development Goals and the 2030 Agenda. To achieve this strategic objective, it is essential to evaluate and assess the business practices of our business partners.
Our sustainability objectives are based on the following pillars:
Promote the development of a responsible, transparent management model and solid corporate governance, with a sustainable vision that in the long term identifies and proposes responses to new ESG challenges and opportunities.
Continuous improvement in production efficiency that leads to the reduction of emissions, water consumption and other inputs, and that allows establishing Columbus’s commitments and objectives in the fight against climate change.
Strengthen people's alignment with Columbus’s values, promoting their commitment to sustainability, promoting equality and talent development, and improving the organizational climate to strengthen pride of belonging.
To be a company recognized for our commitment to local society and the creation of positive community impact.
Improve the relationship with our business partners, in line with the principles and practices of Columbus.
What does Columbus require as part of the Acerinox Group?
As a leading company in the stainless steel sector, Acerinox is committed to sustainability, respect and defense of human rights and promotes an integrative corporate culture committed to diversity, equity and inclusion. Our supplier chain is a key part of our activity; Acerinox promotes and requires suppliers to adhere to and respect the same principles. The Acerinox Group's Responsible Procurement Policy and Code of Conduct for Business Partners include the requirements we have established for our suppliers. These documents explain the duties and commitments that are essential for establishing a business relationship with us and therefore are part of our supplier selection process. This practice contributes to building a supply chain that shares our values and responsible behavior. The requirements are updated periodically to ensure that best practices and progress in our performance are included.
In its procurement management model, Acerinox establishes a number of general common guidelines for all Group companies, which in turn develop their own procedures to control and guarantee a supply chain that meets the requirements included in this model and the legal and regulatory standards.
To this end, the supplier selection processes are based on the principles of openness, equality and transparency, promoting among its suppliers similar principles that inspire Acerinox as a responsible Group.
Ethical, environmental and social principles are reflected in the approval processes, as well as in the:
This policy
outlines objectives
such as:
Including social and environmental criteria in purchasing decisions.
Promoting the development and sustainable long-term growth of all entities involved in the supply chain.
Promoting sustainability principles among the suppliers and contractors of North American Stainless.
Ensuring that the selection of suppliers complies at all times with the fulfillment of the commitments acquired and the internal rules of the Group that regulate contracting.
Acerinox purchasing process
The registration and approval of new suppliers is done through Jaggaer. This step is essential to start any relationship with Acerinox.
Digital Tools used in Procurement
Procurement and supplier management platform that allows us to improve onboarding and also optimize the tender processes through automation and data analysis. Additionally, it includes features to manage contracts and supplier compliance facilitating transparency.
Platform used to manage supply chain risk. It allows an effective risk identification, assessment, monitoring and management in terms of ESG and compliance. It includes audit and improvement action plan follow up.
SUPPLIER APPLICATIONS
Columbus follows a comprehensive and thorough supplier evaluation process which includes amongst others, compliance checks, capability enquiries, supplier visits/audits, third party risk checks and oversight of our Vendor Committee. Registration as an approved supplier is not guaranteed for all suppliers who apply. Registration is mainly driven by the demand and requirements from our business units. The process to be registered as an approved supplier starts with an application that is fully completed with all the required documentation as guided by the application. The Supplier Management section will first establish if there is a need for the offered goods or services. If a need exists, they will get the confirmation from the relevant Columbus representative.
The process of evaluating and checking all the supplied information from the potential supplier will then commence. Columbus will provide feedback to the potential supplier after the application has been considered and a final decision has been taken to register the supplier as an approved supplier or not.
Supplier Application Guidelines
Important documentation for noting only, upon processing of the application the applicable documentation will be signed electronically:
In addition to the Columbus documentation above, suppliers will require the following documents as part of the application process:
Company Profile
Original bank letter (not older than 3 months)
A letter on a company letterhead confirming banking details signed by the CEO or the CFO
Company Registration Certificate
VAT Certificate (South Africa only)
Tax Clearance (South Africa only)
Letter of Good Standing (on-site work - South African suppliers)
For Foreign vendors: Confirmation on company's letterhead, signed by an authorised signatory that employees are insured
Proof of insurance
Name Change certification (If applicable)
Share Certificate (South Africa only)
BBBEE Certificate/Affidavit (South Africa only)
Suppliers who believe that they can provide goods or services that Columbus requires and are committed to comply with our General Conditions for Buying and other specific requirements are welcome to submit an application here.
Please send an email to supplierapplications@columbus.co.za with your company name in the subject line once you have fully completed the application.
