ILMARINEN’S SOURCING POLICY

1. Application

This sourcing policy is applied in all of Ilmarinen’s sourcing operations.

2. Sourcing operations

Ilmarinen’s sourcing operations are systematic and continuous activities focussed on evaluating and selecting product and service suppliers. Sourcing operations are the purchasing of products and services and intellectual property rights for the company. At Ilmarinen sourcing is managed in a consolidated manner at the company or division level according to the agreed division of responsibilities.

3. Goals and authorisations

Ilmarinen’s sourcing is carried out systematically and cost-efficiently and is as uniform and consolidated as possible based on critical discretion as to need. We follow established tendering, decision-making and contract procedures to ensure that sourcing is carried out optimally in terms of Ilmarinen’s needs.

Sourcing authorisations are based on Ilmarinen’s decision-making authorisations. In order to reach the goals of the sourcing operations and to ensure high-quality sourcing know-how, sourcing is carried out on the company or division level based on the sourcing guidelines (see section 6).

4. Responsibility

Ilmarinen’s sourcing is carried out according to legislation and regulations and Ilmarinen’s internal guidelines. We also take environmental matters into consideration in our sourcing activities.

Our sourcing policy and guidelines are based on Ilmarinen’s Code of Conduct, related-party guidelines and anti-bribery principles.  

The foundation for establishing and maintaining business relationships is that our product and service suppliers commit to responsible ways of working and also otherwise comply with sound business practices.

5. Sourcing process and selection principles

Ilmarinen’s sourcing is carried out based on good market practices and sourcing is, as a general rule, put out to tender.

Sourcing is based on calls for tenders. The contract process utilises legal expertise. Sourcing contracts are entered in Ilmarinen’s contract register.

The sourcing process is as practical and cost-efficient as possible. For example, deciding on organising calls for tenders and their extent is carried out based on the significance of the sourcing.

The sourcing process takes into account the constant change and development of the markets in terms of technical characteristics, quality of service and price, among other things. When selecting a supplier, Ilmarinen takes into account how the offered package serves the company’s needs. Sourcing avoids reliance on a single supplier.

The selection criteria include the company’s competence, reliability, responsibility, resources and competitive price of the delivery.

6. Sourcing guidelines to supplement the sourcing policy

Company-specific sourcing guidelines have been drawn up based on the sourcing policy, which specify in more detail the sourcing bidding and contract process and which cover all sourcing operations. In the case of some sourcing operations separate, more detailed sourcing guidelines (e.g. IT sourcing and real estate development) have been drawn up, which abide by Ilmarinen’s sourcing policy and company-specific sourcing guidelines.