Supply chain sustainability is essential to delivering long-term profitability and offers significant competitive advantages. There is a growing need for integrating environmentally sound choices into supply-chain management, particularly in terms of waste.
In collaboration with our suppliers, Northam seeks to ensure excellence in our economic, environmental and social performance throughout our product life cycle.
The group’s code of ethics governs the interaction between the group and its suppliers, contracting companies and customers. We expect all our suppliers and supply chain personnel to operate safely, responsibly and sustainably in accordance with our code of ethics. A breach of the code of ethics could result in disciplinary action and/or civil or criminal action being taken.
Supply chain risks can be significant and Northam takes care to ensure that our suppliers are financially sound, reliable and sustainable businesses. Our supply chain is governed by our comprehensive group procurement policy. The policy addresses all aspects of supply chain management such as tender procedures, contract management, preferential procurement, vendor management, inventory management and provides an approval framework. A full audit trail exists for all supply chain procedures and independent audits are conducted annually. Information on vendor applications is also independently verified before any business is conducted with new suppliers.
In FY2017, Northam Platinum spent R3.4 billion with suppliers. We believe that every rand spent should be an investment in promoting responsible business practice among our suppliers, and that promoting a sustainable supply chain has a beneficial impact on the broader South African society.