Alligo strives for establishing long-term sustainable relationships with suppliers all over the world. The focus is on establishing a well-balanced base of carefully selected suppliers who can ensure product and delivery quality at the right price and also care for people, society and the environment.
Setting high requirements
A centralised assortment and procurement organisation is responsible for Alligo having the right offering and the right products for customers. This responsibility includes ensuring that Alligo works with suppliers that satisfy the same high social, ethical and environmental requirements as Alligo’s own operations.
Suppliers that are part of Alligo’s core offer must meet our supplier requirements and the Supplier Code of Conduct and restricted chemicals lists are incorporated in all new commercial contracts that Alligo signs with key suppliers. Currently, 78 per cent of the Group’s direct purchases are made from suppliers that have accepted these fundamental requirements.
1) Suppliers with a purchasing value in excess of MSEK 1 in an individual country..
2) Share of procured value.
Alligo is a member of Amfori, a European business initiative that works for social responsibility and sustainable working conditions in global supply chains. Its members work together to drive improvements through consistent requirements and initiatives. Suppliers undertake to comply with the common code of conduct and follow-up is performed by independent third-party auditors.
Follow-up and review
Based on mapping and risk assessment of Alligo’s suppliers, we follow up and evaluate their performance against our requirements. The Group conducts self-assessments, supplier audits, collaboration plans, and third-party audits.
Alligo initiated the process for supplier assessments in 2021 and so far, a total of 251 suppliers (57%) have completed the Group’s self-assessment. The work to include the Group’s suppliers in this more comprehensive assessment remains ongoing, and the aim is to cover all key suppliers.
Third-party audits are conducted at factories where Alligo’s own products are manufactured, following Amfori BSCI’s audit programme. If non-compliance is identified in a supplier visit, a joint action plan is drawn up in the first instance in order to ensure compliance with the Code of Conduct through support and training.
In the event of any major breach of or repeated deviations from the Code of Conduct, the business relationship with the supplier may be terminated.