Transparent Supplier Chain
Patria and its business units control and develop the Group's strategic purchasing and buying, logistics, partnership and subcontractor networks in a manner that produces the most cost-effective value to its customers and owners. Patria supports its Business Units in achieving their goals at the customer interface by providing, developing and coordinating the most competitive purchasing, buying and logistics processes.
Patria operates only with suppliers and subcontractors who are ready to comply in their work with the principles of Patria's Code of Conduct.
Patria requires that all suppliers and subcontractors abide by local legislation in all countries in which they operate. When competing for new projects, the significance of the added value contributed by suppliers has increased further. Suppliers providing concrete added value can participate in projects at an early stage as risk-sharing partners, active product developers and by providing support in discharging offset obligations. Long-term projects emphasise suppliers' capability for long-term co-operation on the further maintenance of delivered solutions.
Due to their different fields of expertise and different business operations and model, Patria's business units have their own processes regarding supplier selection.
The selection process includes a due diligence survey determining, among other things, and the potential supplier's risk management as well as the ethics and compliance program with a self-assessment survey. Potential suppliers are also asked to disclose any legal proceedings concerning corruption. Procurement has access to a due diligence tool to support the assessment.
All of Patria's business units have their own processes regarding supplier selection.
All contracts include a clause stating that the Supplier must comply with all related laws and regulations as well as reference to Patria’s Code of Conduct. In case risks are recognized, they are evaluated and appropriately mitigated. Business units maintain oversight of their supplier base.
Audit programs are also business unit specific and performed according to their annual schedules.