Manufacturing and processing of chemical substances is the basic activity of our Company, and one of the most important strategic business areas covers the procurement of raw materials made as part of the current purchase strategy.
Suppliers
The supply of raw materials necessary for production is not only a matter of ensuring continuity of the supply chain, but also a key element of the integrated purchase strategy of the Company. Most of the products offered by us require specialist, often difficult to access raw materials and the profitability of our production is highly dependent on the costs.
Our Relations
Supply Chain
Purchasing PracticesPurchasing Practices
The process of supplying raw materials often involves making a lot of very difficult business decisions. Such decisions influence both the manufacturing costs and the final quality of our products. Cooperation with our suppliers takes place on the basis of the accepted General Purchasing Terms and Conditions (GPTC), which are made available to all interested parties on the Company’s webpage. The selection and qualification of suppliers is based on the applicable internal procedures which define the most important aspects of cooperation in the areas of quality, logistics and principles of purchasing transactions.
In order to ensure the quality of our business relations and promote good practices, we have developed the Suppliers Code of Ethics which describes the minimum requirements of PCC EXOL SA with respect to suppliers’ conduct in accordance with values and principles of social responsibility and sustainable development.
All our suppliers are obliged to comply with generally applicable legal regulations, regardless of the provisions of the Suppliers Code of Ethics.
As part of our intensified actions in the area of Corporate Social Responsibility (CSR), we have developed a survey aimed at assessing the extent to which our Company’s requirements have been met, as well as the suppliers’ membership in organisations and initiatives in the following areas:
Local communities |
Employees and workplace |
Natural environment |
Other actions |
The results of the survey constitute the basis for assessment of CSR practices by raw material suppliers, and are included in one of the accepted methods of communication and dialogue with stakeholders. The results obtained from the collected surveys may influence the final assessment and qualification of a given supplier in case it does not carry out any actions or initiatives in the area of good CSR practices.
STRATEGIC RAW MATERIALS
ETHYLENE OXIDE (EO)
The Company’s purchase strategy in this area is based on a long-term purchase contract with the main supplier. We also deliver supplies from other European contractors on the basis of spot contracts in order to diversify and ensure security of supply in case of short-term stops in the main supplier’s deliveries.
NATURAL FATTY ALCOHOLS
Supplies of natural fatty alcohols are made on the basis of short-term contracts. Currently, the Company’s suppliers are from South-East Asia and from Western Europe. This allows for diversification of supply sources and optimisation of purchase costs, as well as for shortening the delivery time. The price of this group of raw materials is influenced by the CPKO quotations (crude palm kernel oil/raw palm grain oil).
Percentage of the use of particular raw materials
OUR OBLIGATION:
So as to ensure positive and ethical business relations with our suppliers, we have put in place and follow the PCC EXOL SA Suppliers’ Guideline.
PURCHASE RISKS
As a producer in the chemical trade, we are aware that our production is related to the demand for specific, often difficult to access raw materials. Competition in the market for certain raw materials is therefore very strong. Continuous search for new sources of supply is one of the biggest challenges that we have to face in our daily operations.