Purchasing and logistics policy

Target group

This policy applies to all companies/employees in Bergen Group and its suppliers.

The tasks and roles of the purchasing and logistics function 

The purchasing and logistics function shall be included in the job descriptions of all purchasing and logistics staff in Bergen Group. It is described in the guidelines, strategies and action plans that apply at group and company level at all times. This discipline area has an important role in the group’s value creation and it will be coordinated both horizontally and vertically within group companies and at group level. Purchases shall always be made in accordance with the currently applicable authorisation matrix for the group and the company.

Strategy 

The purchasing function shall, in an overall perspective, have a strategy that, among other things,:

  • Identifies critical products, allocates risk between the parties and identifies areas/deliveries with the greatest potential for improvement.

Ethics and the environment 

The following main principles form the basis for the purchasing function’s work:

  • Ensure that purchases are not in breach of overriding ethical principles enshrined in the company’s policy document (see BG policy and guidelines recommended by the Ethical Trading Initiative Norway (IEH).
  • Contribute to reducing the total environmental impact of goods and services purchased.

Principles for purchasing and the logistics process 

The following main principles apply:

  • Identify and verify the actual need in cooperation between the purchaser and users.
  • Always consider alternative solutions internally and externally and avoid new purchases if possible – needs verification.
  • Always endeavour to find solutions that are optimal with respect to time, quality and cost, and that involve as few links as possible in the value chain.
  • Suppliers are invited to tender on the basis of their experience, expertise, technical ability to deliver, financial soundness and documented environmental and quality management systems.
  • Use objective and performance-based specifications and criteria.  When selecting products/solutions, the financially most advantageous tender shall be chosen, taking lifecycle costs and environmental properties into consideration.
  • Our own terms and conditions and contract templates shall always form the basis for the strategy for invitations to tender and contracts.
  • Follow up overall performance on a contract/delivery through the operating phase up until obsolescence/contract expiry.
  • Assess the supplier development process in areas that are strategically important to the group.
  • Communicate with the market and suppliers in accordance with good business practices.
  • Inform suppliers who are not chosen why they were not selected without disclosing sensitive information.
  • Always carry out the processes in accordance with Bergen Group’s current purchasing and logistics manual.

Reporting 

The VP Purchasing and Logistics shall submit an annual report to the group and company management on compliance with the policy.