The relationships we establish with our suppliers are based on sharing and compliance with the principles set out in our business conduct and corporate responsibility policies1, agreed specifications, and commercial contracts that define the responsibilities of each party, including aspects such as food safety, quality and brand reputation. To promote and ensure compliance, we conduct selection and regular audits of suppliers of perishable and Private Brand products.
Selection audits ensure that potential suppliers meet the minimum requirements to do business with our Companies. Suppliers that do not meet these criteria are not selected and receive information on aspects that need to be improved for them to be considered in the future.
Regular audits allow us to assess process management and implementation, monitor product formulations and specifications, and to prevent (and mitigate) potential risks related to food quality and safety, environmental impacts, and human and labour rights.
Where a supplier is unable to meet the requirements, a corrective action plan is agreed, the progress of which is monitored. If suppliers fail to comply with the corrective action plan or are unwilling to implement it, action may be taken, with different levels of severity, including suspending the partnership until confirmation that the nonconformity has been remedied, or even terminating the business relationship. Where serious non-compliance is identified, suspension is immediate to ensure consumer safety and the credibility of our banners.
We conduct three types of audits:
Food quality and safety audits (which include food defence and animal welfare criteria. The latter is ensured in specialised perishables in the meat, farmed fish, and egg categories).
Environmental audits (which includes service providers).
Social audits.
1 The Group’s Corporate Responsibility policies, such as the Nutrition Policy, the Product Quality and Safety Policy, the Environmental Policy, the Sustainable Sourcing Policy and the Supplier Code of Conduct, are available on our website.