Wärtsilä has defined a set of mandatory requirements for its suppliers to comply with. These requirements consist of Wärtsilä supplier requirements, Code of Conduct and the Quality, Environmental, Health and Safety Policy and aim to achieve the Wärtsilä purpose of Enabling sustainable societies through innovation in technology and services. In addition to these supplier requirements, we have product and service-specific requirements, which are continuously monitored as part of the Supplier Requirements and Performance Management process.
Wärtsilä ensures the compliance of its suppliers through the Supplier Compliance Assurance process as described in the flowchart below. This process is conducted as a part of Supplier Onboarding process of new suppliers, and Supplier Requirements and Performance Management process of existing suppliers.
Within the Supplier Compliance Assurance process, various areas such as Environmental, Social, and Governance (ESG) compliance, quality management, financial stability, geographical location, and the overall performance of the supplier are being evaluated.
The Supplier Compliance Assurance process comprises the following phases: information collection, risk evaluation, and Vendor Management System (VMS) rating.
During the information collection phase a number of data collection activities are performed to ensure that the necessary information is available to perform a fact-based risk evaluation and VMS rating of a supplier. The data collection activities may include for example use of online questionnaires or on-site auditing. For new suppliers, the first step is to provide information through an online questionnaire. All suppliers are also screened for economic sanctions, and further compliance matters using automated third-party databases and key media sources.
In the risk evaluation phase all available information is reviewed to gain knowledge of possible risks and to understand the capabilities of the suppliers.
The last phase of the Supplier Compliance Assurance process is VMS rating which aims to identify the strengths and weaknesses of a supplier and ensure the compliance with Wärtsilä supplier requirements. The VMS rating is often performed on-site at supplier premises, although it may also be conducted remotely as a desktop activity. An output of the rating is an approval status of a supplier and a corrective action plan aiming to develop the supplier and increase their level of compliance with the requirements and expectations of Wärtsilä.
Guidelines and instructions for suppliers are available on the Supplier Guidelines page.
