The supply chain is a strategic element of our business model. Thousands of suppliers contribute to the Group’s competitiveness and value creation through the quality of the products and services supplied and the collaboration in the project management, including focus on risk management. Suppliers take part in collaborative innovation processes, in order to share knowledge, skills and technologies, also participating in industry initiatives.
At the same time, our commitment is to build a solid and reliable supply chain, in an innovative, integrated and resilient eco-system, able to sustain the social and economic development of the territories where we have a strong presence.
Leonardo purchases goods and services mainly from the four domestic markets (Italy, United Kingdom, United States and Poland), in which it has fostered the creation of industrial districts, bolstering local suppliers, most of which are SMEs.
Our suppliers take part in collaborative innovation processes and training, in order to share knowledge, skills and technologies, also participating in industry initiatives.
Collaboration and commitment go hand in hand with the requirements our suppliers have to respect. All suppliers shall share and comply with ethical, social and environmental standards, acknowledging and accepting the Leonardo’s Code of Ethics and the Supplier Code of Conduct as well as the guidance provided in the organisational and control models. Suppliers have to be compliant with our economic, financial, ethical, legal and anti-corruption requisites, already verified during the pre-qualification phase and monitored throughout the period of the supply relationship by the Supply Chain and Procurement office.
Leonardo Strategic/Critical Tier 1
Leonardo evaluates and cluster suppliers on an ongoing process based on the following criteria:
- volume of business;
- the risk of supply (difficulty of activating an alternative supplier);
- financial health and dependence on Leonardo;
- technical and managerial capabilities;
- performance (quality and punctuality of deliveries)
Specific risk mitigation action are in place to manage strategic/critical suppliers and ESG high risk suppliers.
Critical Tier 1 suppliers are identified as high volume and high risk of supply suppliers.
ESG high risk suppliers are identified as the suppliers that have a high probability of causing an adverse impact on the organization due to social, environmental and/or economic misconduct.