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ICRC PROCUREMENT POLICYGuidelines and information on how to do business with ICRC
LOGISTICS DIVISION, GENEVA
International Committee of the Red CrossLogistics Division, Procurement Unit19, avenue de la Paix1202 Geneva, SwitzerlandT +41 22 734 60 01 F +41 22 733 20 57E-mail: [email protected] www.icrc.org© ICRC, May 2016
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To contract with ICRC, potential and current suppliers must check if their global level matches with the required standards. Prior to products and specification concerns, Social Compliance, environmental impact lim itation and neutrality toward conflicting parties are to be respected. When traders are solicited, where possible their sources need to be assessed. Moreover, life cycle analysis are beingdeveloped to optimize items performance.
Internal Code of Conduct for Purchasing
Buyers are key actors of the procurement. Therefore, deontological rules have been elaborated to sustain the ethical policy and strengthen its credibility. A zero tolerance policy has been implemented for potential abuses identified from ICRC purchasers.
The unpredictability of needs in terms of volume and delivery time prevents
ICRC from becoming a major or exclusive partner of a single supplier. Therefore, the ICRC’s involvement in suppliers’ turnover should not surpass 30% in order to reduce the risks for suppliers.
Compliance with specifications
Emergency items specifications, based on international standards, are available online. Items delivered to the field must comply with the right quality level required to fulfil victim’s needs. The catalogue includes 3 volumes dedicated to:
Volume1: Telecom, household, food, logistics suppliesVolume 2: Medical & paramedical generic itemsVolume: Medical & paramedical specific items
The Logistics division at Headquarters, Satigny (Switzerland),
FUNDAMENTAL PRINCIPLES FOR DOING BUSINESS WITH THE ICRC
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Frame agreements for strategic items
Thanks to frame agreements, the ICRC can supply strategic items at any time throughout the year to answer important needs.The frame agreement policy includes permanent stocks at suppliers' ready to get shipped. Requests are constant for these products even if major orders are
placed quarterly. Strategic products such as Essential Household Items (EHI) become more and more attached to frame agreements. In the short to medium term, all manufacturers willing to be part of the tenders must
guarantee an access to their production lines.
General Conditions on Purchasing
General Conditions on Purchasing are the contractual basis on which the ICRC’s influence is based. Violations of the GCP and quality issues of the goods expose the supplier to penalties and/ or suspension. Ethical purchasing orientations, such as the sustainable development policy lead at HQ were integrated in the GCP, giving a background to the development of these criteria:
Article 20: Working conditions and child labour. Article 23: Environmental protection.
Article 20 GCP: Conditions and Child Labour
“By virtue of the Universal Declaration of Human Rights, the Convention on the Rights of the Child and the ILO's Declaration on Fundamental Principles and Rights at Work, the Seller must respect the following:
- Prohibition on the use of child labour;
- Prohibition on the use of forced labour;
- National laws regarding hygiene, safety and labour rights.
The application of these principles shall be based on the laws of the country in which the items are produced.
Should those laws fail to be observed by the Seller and/or its suppliers, the Buyer may make recommendations. If these recommendations are not followed, the Buyer shall be entitled to suspend or cancel the contract. Already rendered Services that cannot be returned, or goods and services that the Buyer keeps, must be paid but no compensation for the cancellation of the contract will be due.”
Article 23 GCP: Environmental Protection
“The Seller’s environmental policy shall commit to reduce the environmental impacts: Environmental protection shall be taken into consideration in the complete production process and distribution chain, from the raw materials production to the point of sale, and is not limited to own activities and suppliers: local, regional and global environmental concerns shall be considered.
Whenever possible, the Buyer shall seek to procure goods and services that lessen the burden on the environment.” of the contract will be due.”
ICRC LONG-TERM RELATIONSHIPS STRATEGY
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ICRC Sourcing strategy
All year long, our purchasers perform sourcing visits of manufacturing plants to identify suppliers able to answer the needs in quality, quantity, price, service, and timely manner in the respect of social and environmental concerns.
The sourcing assessment comprisesconditions to be fulfilled regarding the economic performance of the supplier and its compliance to fundamental social and environmental principles.
Economic performance assessmentThe preselection of suppliers is based on their ability to meet ICRC specifications, production capacity as well as their financial strength. No sourcing mission is made through traders without identified and auditedmanufacturing source for strategic items.
Social Compliance preliminary assessment Social Compliance assessment includes fundamental requirements related to 3 topics:
Company Ethics: Bribery and corruption
Social Performance: Child labour; Forced/ bonded labour; Health & safety; Collective
labour rights; Non discrimination; Harassment & abuse; Compensation & working hours; Work hardship
Environmental Performance:Environmental accountability& impacts; Natural environment preservation; Consumption of natural resources
Key setups for Quality Control
Quality Control in ICRC warehouses comes in addition to the tests conducted by testing laboratories. Thanks to a process approach, the control is done with the appropriate setup including documents, equipment and adequate training.
In order to strengthen the Quality control, the Logistics Division in Geneva/Satigny has put in place Quality Control kits. They consist of a panel of tools to verify the stability and physical specifications of items in fieldconditions.
ICRC ACTIVE SOURCING POLICY
The Logistics office in Nairobi (Kenya)
ICRC Position on EthicalPurchasing
The “QSE” audit is the last step to overcome before the signature of the contract with the supplier figuring in the short list. The audit leads in priority in factories producing strategic supplies attached to framework agreements, and has been developed with external companies. Regarding social compliance the assessment process is structured around 4 main topics:
Subcontracting Wages and Hours Employee environment Environmental health and Safety Summary
“QSE” REQUIREMENTS:QUALITY, SOCIAL & ENVIRONMENTAL AUDITS
Currently, QSE audits are mostly developed in the field of EHI provided by Developing and Low Cost Countries. For every audit, the auditors’ team integrates at least one ICRC member embedded for the quality and compliance who will participate to the investigation and validate the final outcomes. Reports contain Yes/No questionsand final documents are open to RC-RC purchasing units. Framework agreements are available for RC movements.
MISSIONThe International Committee of the Red Cross (ICRC) is an impartial, neutral and independent organization whose exclusively humanitarian mission is to protect the lives and dignity of victims of war and internal violence and to provide them with assistance. It directs and coordinates the international relief activities conducted by the Movement in situations of conflict. It also endeavours to prevent suffering by promoting and strengthening humanitarian law and universal humanitarian principles. Established in 1863, the ICRC is at the origin of the International Red Cross and Red Crescent Movement.
USEFUL LINKS AND CONTACTS