Supplier Development and Management

Value Chain Boundaries

Impacts of this topic reach Argos’ procurement processes and the supply chain.Suppliers
Impacts of this topic are evaluated throughout all Argos operations.Argos
Impacts of this topic reach our industrial and/or retail clients.Clients
Impacts of this topic reach our communities, authorities and other individuals of the society.Society

Our management approach

Added value to the company

We contribute to the development of suppliers that help us achieve our business objectives while reducing associated risk, ensuring transparency, and building capacity throughout the supply chain.

Added value to society

We help to increase our suppliers’ competitiveness, generating more employment, developing their skills, and supporting community development through long-term business relationships and our capacity-building programs.

103-2 Initiatives, commitments, and policies


Argos Goods and Services Procurement Manual

Global Compact

Argos Human Rights Policy

Argos OH&S Policy

Argos Suppliers’ Sustainability Index

Sustainable Development Goals (SDG)

Sustainability Policy

103-2 Governance

Board of Directors
CEO and Corporate Governance and Contract Committee
Regional Supply Chain Managers and Directors
Regional Procurement Managers or Directors

Supplier Recognition Program in Colombia

2016 performance

  • We started the implementation of a standard platform to assess and audit our suppliers on sustainability and OH&S topics in all regions.
  • We increased the coverage of the capacity-building program to 70 more suppliers in the Colombia Region, during the last three years.
  • We redesigned and applied the Supplier Sustainability Index to 62 suppliers in all our regions.
  • We implemented 89 OH&S audits for contractors within the framework of the I Promise management system in Colombia.

Upcoming challenges

  • To implement standarized capacity-building programs, tailored-made for all regions.
  • To increase coverage of supplier sustainability assessments and audits for all regions.

We launched a Supplier Recognition Program in Colombia based on their performance on sustainability and innovation. 14 of them were recognized for their excellent performance.

Supplier Recognition Program in Colombia

204-1 Number of suppliers and supplier spend

Colombia
CCA
USA
Percentage of products and services purchased locally
92%
69.9%
94%
Number of total suppliers
3,867
1,897
6,824
Number of local suppliers
3,645
1,448
6,796
Percentage of local suppliers
94%
76%
99.6%
Number of critical suppliers assessed in sustainability criteria
471
231
9
2016 Goal tracking
···
· We implemented the sustainability index with adjustments based on experience and results obtained during 2014 and 2015 pilots.
· We provided our suppliers with online tools to assess and suggest sustainability improvement plans.
· We increased the training coverage for our suppliers on Corporate Governance good practices, Code of Business Conduct, Anti-corruption and Anti-bribery Policy, planning and risk assessment, and relationship with communities, as well as the measurement of impacts caused on them.
· We implemented the Supplier Recognition Program in Colombia.
· We continued to implement sustainability best practices derived from initiatives such as the Global Compact and the Cement Sustainability Initiative (CSI).
2017/2018 Goals
  • We will develop a Corporate Sustainable Procurement Policy.
  • We will implement the second version of the Suppliers Recognition Program.
  • We will increase the percentage of suppliers trained on sustainability issues.
  • We will increase the percentage of suppliers that undergo a screening process before negotiation phase.
  • We will increase in 50% the coverage of supplier’s Sustainability Assessment.