In 2017, 85% of our critical suppliers acknowledged our Supplier Code of Conduct.

Our supplier risk assessment process and self-assessments help us identify and measure social, environmental and ethical risks in our supply chain. This helps us better understand how our critical suppliers are performing against the code and standards. We work closely with our critical suppliers to influence corrective actions to ensure continuous improvement. In 2017, 78% of our critical suppliers completed the required self-assessment with low or medium risk, which is equivalent to 92% of our total critical supplier baseline spend.


As part of our supplier relationship management process, in 2017 we launched the supplier scorecard to evaluate each of our critical suppliers against a wide range of performance and compliance criteria. Elements such as cost, quality, and delivery, as well as scoring criteria for compliance are tabulated, analyzed and distributed quarterly. Each supplier’s performance is reviewed quarterly between the commodity managers and their key supplier counterparts. In addition to this, semi-annual executive business reviews are held to put action plans together to monitor and address any gaps.

On August 14, 2017, ASMI held its first-ever global supplier day, inviting over 50 of our critical suppliers to the event, to deliver industry updates, business unit product insights, and the overall direction of our company. Using our performance scoring criteria as a baseline for results, we publicly recognized our top suppliers for their outstanding contribution to ASMI's success in the prior year. Suppliers who routinely underperform in any area, or who continually demonstrate a risk to our continuity of supply or corporate responsibility, are assessed for removal from our portfolio.


In 2018, we will continue to identify opportunities to improve supply chain operational efficiency, supplier communication, and supplier training, and embed these in our supplier management system and procedures. We are therefore preparing to revamp our supplier portal and improve our procure-to-pay process, supplier communications related to supply chain initiatives, business requirements, and supplier performance.


We are also progressively consolidating our spend with critical suppliers that are supportive of ASMI compliance policies and business needs. Overall spend with these suppliers has increased from 64% in 2016 to 67% in 2017.