Supply Chain Management
Our Supply Chain Management teams operate at the global and mine site levels to manage contracts with many suppliers, ranging from multi-nationals to nearby small businesses. The team manages procurement of the hundreds of thousands of items and services that each mine requires on a daily basis, from food to tires to construction materials.
Supply Chain Management’s ability to source high quality goods and services at the lowest price is essential to competitiveness. But in a socially and ethically responsible organization like ours, our task doesn’t end at price. Every purchase is evaluated against a long list of priorities, as established in the due diligence provisions of the Goldcorp Commercial Practice standards. They must evaluate and balance each supplier’s location and assess whether they are capable and qualified to meet the mine’s logistical and technical requirements. Each vendor is also reviewed for their compliance with labour practices, human rights, ethics, anti-corruption and safety standards.
The Supply Chain Management team’s work is central to our adherence to the World Gold Council’s Conflict-Free Gold Standard, which provides assurance that our actions do not contribute to human rights abuses or breaches of international law.
In 2017, the Supply Chain Management team implemented a strategic initiative to consolidate and standardize processes to deliver additional cost savings across our operations, without compromising reliability, quality, ethics or our existing partnerships with local suppliers and communities.
Ensuring that Suppliers Follow Our Standards for Human Rights and Ethics
Across our industry, demands for ethical compliance are increasingly strict. At Goldcorp, we need assurance that our corporate values are observed at every link of our supply chain. The Supply Chain Management team, in collaboration with our Ethics and Compliance team, have established risk-based compliance due diligence procedures for new vendors. Using specialized tools, new vendors undergo a risk assessment based on the type of goods or services they will be suppling Goldcorp. The results of the risk assessment determine the depth of the due diligence to be conducted. The due diligence could go from a simple reference check to a comprehensive full integrity check executed by third party experts that dive into the histories of the suppliers and their principals.