Carry out the procurement
Here you will get help in deciding when to use the due diligence requirements for sustainable supply chains. You will also receive help in completing and finalizing the condition regarding supply chain transparency and how to request information about the final manufacturing country, as well as how you can inform the suppliers about what the contract terms entails.
Introduction
The procurement documents shall contain all relevant information for suppliers to be able to submit tenders. When the procurement documents are ready, it is time to advertise the procurement so that suppliers know about it and can submit tenders.
For the contract terms on sustainability due diligence, this step includes:
Determine the level of the contract term
The contract terms for sustainability due diligence must always be used in procurements that include the regions' national prioritized purchasing categories.
The contract terms are a special contract condition (only in Swedish). Special contract terms are what are defined in the procurement laws as special conditions for the performance of contracts and special conditions for the performance of concessions respectively. This means that it does not have to be fulfilled when the supplier submits its tender. Instead, it shall be fulfilled when the contract is fulfilled. Unless otherwise stated, it enters into force at the start of the contract.
The terms can also be used in procurements of other categories where the risks are assessed as high. For other categories, the Swedish The National Agency for Public Procurement provides basic contract terms. The base level is available in the Agency's criteria service.
The contract terms are accompanied by the regions' joint Code of Conduct for suppliers which aims to ensure that suppliers perform contracts in accordance with human rights, workers' rights, the environment and business ethics (sustainable supply chains). The code of conduct is based on international frameworks, conventions and declarations.
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How to carry out a risk analysisStep 1: Mapping the supply chain The first step in a risk analysis consists of mapping the supply chain to find out its structure. This includes identifying in which countries the work is carried out, and if possible also in which regions. This is particularly relevant if the work is carried out in any region known to have high risks. Within certain industries such as food, textiles and IT there is a lot of information. For other industries such as pharmaceuticals, however, transparency is low. To obtain this information, you can ask the category manager, the category councils, ask questions of suppliers, find out import data, read audit reports and market analyzes for specific industries. It is also important to identify what type of work is carried out and what type of actors in the supply chain that performs it. Is it, for example, an industry characterized by low wages and health-hazardous processes? Does the workforce consist of migrant workers or seasonal workers? Is the supply chain complex with many subcontractors and a lack of transparency? This type of information is important as both geographical risks, industry risks and product risks need to be taken into account. Step 2: Gather information from credible and independent sources Once you have mapped the origin and the supply chain, the next step is to gather information about the situation of human rights, workers' rights, the environment and business ethics in the relevant countries where the work is carried out, that is, both for final manufacturing, component manufacturing and raw materials. For this you need to turn to credible and independent sources such as international organizations, authorities, voluntary and civil society organizations and global trade unions. Sources Step 3: Identify and assess negative impacts The last step involves assessing the actual and potential negative impact the supply chain is associated with, based on the information that has been compiled in steps 1 and 2. This is to be able to determine which concrete measures need to be taken to manage the risks. Often several risks have been identified and to prioritize them you need to make a seriousness assessment. The most significant risks are prioritized based on probability and seriousness ( read more under point d in process requirement 2 )
Complete and finalize the contract term
The contract terms must be supplemented and completed by you as the procurer. The information in the contract terms that need to be completed are marked with square brackets, for example [the procuring organization]. Once the contract terms are finalized, it shall be included in its entirety in the procurement documents in order to maintain the principle of transparency (in Swedish only).
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How to carry out a risk analysisStep 1: Mapping the supply chain The first step in a risk analysis consists of mapping the supply chain to find out its structure. This includes identifying in which countries the work is carried out, and if possible also in which regions. This is particularly relevant if the work is carried out in any region known to have high risks. Within certain industries such as food, textiles and IT there is a lot of information. For other industries such as pharmaceuticals, however, transparency is low. To obtain this information, you can ask the category manager, the category councils, ask questions of suppliers, find out import data, read audit reports and market analyzes for specific industries. It is also important to identify what type of work is carried out and what type of actors in the supply chain that performs it. Is it, for example, an industry characterized by low wages and health-hazardous processes? Does the workforce consist of migrant workers or seasonal workers? Is the supply chain complex with many subcontractors and a lack of transparency? This type of information is important as both geographical risks, industry risks and product risks need to be taken into account. Step 2: Gather information from credible and independent sources Once you have mapped the origin and the supply chain, the next step is to gather information about the situation of human rights, workers' rights, the environment and business ethics in the relevant countries where the work is carried out, that is, both for final manufacturing, component manufacturing and raw materials. For this you need to turn to credible and independent sources such as international organizations, authorities, voluntary and civil society organizations and global trade unions. Sources Step 3: Identify and assess negative impacts The last step involves assessing the actual and potential negative impact the supply chain is associated with, based on the information that has been compiled in steps 1 and 2. This is to be able to determine which concrete measures need to be taken to manage the risks. Often several risks have been identified and to prioritize them you need to make a seriousness assessment. The most significant risks are prioritized based on probability and seriousness ( read more under point d in process requirement 2 )
Request information about final manufacturing country in price lists
Ensure that price lists and statistics contain information on the country of final manufacture and, if possible, also the location. This is important both from a sustainability perspective and a supply perspective.
In an office audit, the application of policies and processes is checked based on sample products. When you samples, it is important to start from an analysis of which products have the greatest risk of adverse impact on people and the environment. To be able to do that, you need information about the country of final manufacture and this should therefore be included in price lists.
When addressing serious deviations, it also easier if you know from the start which suppliers have manufacturing in a certain country or region. Then the monitoring can target them.
Natural disasters and conflicts can also disrupt the delivery of goods. If you know where the final manufacturing takes place, you can quickly ask the suppliers if they anticipate any delays in deliveries.
Inform the suppliers about what the contract terms mean
When the procurement documents are ready, it is time to advertise the procurement. In connection with the advertising, you need to inform the suppliers about what the contract terms entail. This applies to both the Code of Conduct for suppliers and the due diligence process. Contracting organisations are encouraged to refer to this guidance.