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Last Update: 03/11/2010
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Part of the audited Consolidated Financial Statements and Management´s Analysis

Supply chain management

Monitoring of suppliers

  • Information sent to suppliers about expected standards; self-assessment of suppliers
  • On-site visits to inspect suppliers
  • More than 260 suppliers answered self-assessment questionnaire on labor and social standards
  • Inspection of around 140 raw materials suppliers and 380 suppliers of technical goods and services, as well as logistics service providers

More on supply chain compliance

When choosing suppliers, our decisions are not based solely on economic criteria. Both new and existing suppliers are also evaluated on the basis of environmental protection, occupational safety and social standards, and these standards are incorporated in our procurement conditions.

In 2009, BASF procured raw materials from more than 6,000 suppliers worldwide. Risk matrices help us to identify potential high-risk suppliers. The assessment is based on country, product and sector risks. We visit suppliers on site according to their risk potential. If we establish that they do not meet our standards or only meet them partially, we agree on corrective measures and provide help with implementing these. We continued with the evaluation of our suppliers’ social standards in 2009. In recent years, we have informed our suppliers in writing about expected standards. In 2009, over 260 suppliers filled out a self-assessment questionnaire, which aims to increase their awareness of these issues. We paid on-site visits to around 140 raw materials suppliers in 2009 relating to environmental, health and safety aspects. Furthermore, we inspected around 380 suppliers of technical goods and services as well as logistics services providers. After holding “Supplier Days” in India and China in 2008, we are planning further training sessions on sustainability issues for suppliers in 2010 as well as supplier support visits related to the implementation of labor and social standards.

In 2009, BASF purchased approximately 500,000 different raw materials and technical goods as well as plant construction and maintenance services and logistics. BASF Group’s purchasing volume in 2009 amounted to €21.2 billion. Raw materials accounted for €14.4 billion and technical goods and services for €6.8 billion. Purchasing volumes of trading businesses – with natural gas, metals and other raw materials and merchandise – are not included in these figures. The most important raw materials for BASF are naphtha, natural gas, methanol, ammonia and benzene.
More on the
safety of logistics providers

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