Working With Suppliers
Suppliers play a critical role in Axalta’s ability to deliver superior products and services to our more than 100,000 customers around the world. The materials we use in our products and the services and support we provide to our customers depend on our access to the highest quality raw materials, products, and services.
We expect the same behavior from our suppliers that we demand of ourselves: to act ethically and responsibly. Consequently, we have established several protocols to ensure that our suppliers meet our standards.
Supplier Code of Conduct
Axalta’s Supplier Code of Conduct sets forth expectations regarding our suppliers about their compliance with laws and regulations, social performance, the environment, and other widely recognized standards for ethical and responsible business conduct.
Our Supplier Code requires suppliers to demonstrate respect for people and fundamental human rights, including but not limited to, providing suitable work environments and ensuring that child, forced or slave labor is excluded from their supply chain. As outlined in the Supplier Code, we also expect suppliers to comply with laws and regulations pertaining to anti-corruption and anti-bribery practices. Compliance with the expectations in our Supplier Code of Conduct is a requirement outlined in our standard terms and conditions with all suppliers, and is just one element of our supply chain risk management program.
Supplier Risk Management
Supplier selection and review is governed by Axalta’s Supplier Sustainability Risk Management Program. Based on the expectations outlined in our Supplier Code of Conduct, Axalta evaluates potential suppliers to ensure they will meet the standards of our Supplier Code. On an ongoing basis, Axalta conducts screening of its existing suppliers on a risk-ranked basis to identify potential sustainability, compliance and human rights risks in our supply chain. We review the responses from our suppliers and follow up with them if we identify any responses that are unsatisfactory.
If at any point concerns are raised or risks are identified—via our ongoing screening and due diligence activities, through reports made to our Axalta Ethics Hotline, by our customers or other external stakeholders, or via other channels—Axalta will fully investigate and conduct further due diligence on our suppliers. This may include third-party audits using social and environmental criteria, the development of corrective action plans, or suspending or even terminating purchases from suppliers.
For more information on our supply chain risk management activities, please see our 2018-2019 Sustainability Report.
Axalta is pleased to share our Supplier Directives that cover requirements of supply of materials to Axalta sites in Europe and North America. It is our intention to have - to the extent possible -the same requirements at all of our sites. Nevertheless, some logistics aspects do cause some differences between sites that should be noted. These documents do not focus on individual materials and their specifications. Some directives will apply only to specific material groups or to a specific type of supply (i.e., bulk supply in tank trucks).
California Transparency in Supply Chains Act of 2010 and the U.K. Modern Slavery Act of 2015
Axalta is committed to responsible sourcing and specifically the eradication of human trafficking and slavery in our supply chain. We expect direct suppliers of Axalta’s tangible goods to adopt sound human rights practices, to treat workers fairly, with dignity and respect, and in all cases to exclude the use of human trafficking and slavery in their workplace. Therefore, in addition to requiring that our suppliers meet the obligations of the Axalta Supplier Code of Conduct and contractual terms and conditions, we also expect our suppliers to comply with the California Transparency in Supply Chains Act of 2010 and the U.K. Modern Slavery Act of 2015.
View our full statement regarding the California Transparency in Supply Chains Act of 2010.
View our full statement regarding the U.K. Modern Slavery Act of 2015.
Supplier of the Year Program
Axalta’s Supplier of the Year award recognizes the important contributions that suppliers make to our success – and to the success of our customers. Suppliers nominated for the award are selected from among the company’s global procurement base. Annual selection is based on nominations from a cross-functional group drawn from Axalta’s Technology, Operations and Procurement organizations.
Nominations reflect suppliers’ ability to deliver superior quality products and services measured against four key criteria: quality, service, technology and value. These suppliers also demonstrate a commitment to sustainability by adhering to practices that meet environmental, health, safety, and security objectives as well as those that respect human rights and other corporate social responsibility goals.
- Quality –Vendors are expected to deliver superior quality and demonstrate no significant quality issues based on Axalta’s Supplier Corrective Action Request (SCAR) analysis for the program year.
- Service – Vendors must provide exceptional service by meeting Axalta specifications and on-time delivery of materials and services.
- Technology – Axalta is committed to innovation and expects our suppliers to provide products and services that leverage the latest advances in technology. We also rely on our suppliers to work with us collaboratively to improve how we manufacture and deliver our products and services to our customers.
- Value – Suppliers should ensure as globally competitive a price as feasible for the materials and services that we purchase to enable Axalta to provide competitively priced products and services to our customers.
Expectations for supplier sustainability include not only meeting but exceeding requirements as set forth in the Axalta Supplier Code of Conduct as well as other nominee initiatives related to environmental, social performance and governance.
Supplier Diversity at Axalta
At Axalta, sustainability extends across our value chain, starting with our suppliers. We purchase the finest quality materials to produce our coatings, which means finding suppliers that reflect the faces of the communities we serve and that are aligned with our values and commitment to quality.
Axalta’s supplier diversity program is designed to enable small businesses and those owned by minorities, women, veterans, and those with disabilities to fully participate as an integral part of our supply chain in the U.S. and Canada. Engaging a diverse pool of suppliers helps strengthen our communities and provides commercial opportunities for a wide array of businesses. Our customers benefit from purchasing Axalta products and services that reflect the best that the community can offer.
We are a proud member of the Michigan chapter of the National Minority Supplier Diversity Council and Women Business Enterprise National Council.
If you are interested in becoming a qualified supplier to Axalta, please contact us at Supplier-Diversity-Program@axalta.com
What Businesses Qualify?
Axalta’s Supplier Diversity Program encourages the use of diverse suppliers for our operations and facilities in the U.S. and Canada.
A diverse supplier in the U.S., as defined by the U.S. Small Business Administration, is a business enterprise that is 51% owned, operated and controlled by a minority, woman or veteran and certified as such by one of the following organizations:
- National Minority Supplier Development Council (NMSDC)
- Women’s Business Enterprise National Council (WBENC)
- Small Business Administration (SBA)
- National Veteran-Owned Business Administration (NaVOBA)
- National Veteran Business Development Council (NVBDC)
- Minority Business Development Agency (MBDA)
- United States Hispanic Chamber of Commerce (USHCC)
- United States Pan Asian American Chamber of Commerce (USPAACC)
- National Gay & Lesbian Chamber of Commerce (NGLCC) or Regional Chamber
- WEConnect International
- Minority Supplier Development China (MSD China)
- Canadian Aboriginal Minority Supplier Development Council (CAMSC)
Visit the websites of these organizations to learn more about supplier diversity and whether your business may qualify.
More information about the definitions of qualified businesses in the U.S. can be found on the U.S. Small Business Administration website.
In Canada, the Canadian Aboriginal Minority Supplier Development Council (CAMSC) provides criteria for businesses to qualify as a diverse supplier. More information on qualifications is available on Canada’s supplier diversity initiative website.