Responsible Procurement

The procurement process follows a policy, which establishes corporate guidelines for the acquisition of goods and services in every country where we operate. This document outlines the steps through which every purchase order must go to ensure a procurement process that is responsible, competitive and mutually beneficial for the supplier/contractor and the company, according to the following criteria:

  • Maximum cost efficiency through collective negotiations that take advantage of the principles of economies of scale
  • Compliance with our Code of Ethics, Competition Manual and other CMPC corporate policies. The Company works and interacts with suppliers that adhere to its sustainability policies and contribute towards its sustainability goals
  • Organizational structure that allows each subsidiary to manage its procurement of goods and services in a way that guarantees adequate risk control and compliance with this policy, its norms and complementary procedures
  • All order placement, receipt and payment pertaining to the procurement of goods and services must be done exclusively through the corporate SAP system
  • CMPC’s suppliers of products and services must be evaluated periodically on their compliance with quality specifications, delivery terms, risk management and other contractual obligations

This policy includes ESG objectives, which in the case of wood sourcing translates into prioritizing certified over non-certified suppliers as a way to encourage the spread of certifications. Additionally, we strive to build strong relationships with our local suppliers.

Every new non-registered supplier is subjected to an evaluation process. Suppliers accounting for over USD 1 million in yearly procurement spend are also subject to annual evaluations:

The biggest supplier risks evaluated are:

  • Access to financial support
  • Sole business owners with exclusive sales to the company
  • Workplace accidents
  • Failure to make contributions into a pension fund on behalf of employees
  • Applicable certifications
  • Conflict of interest
  • Global crimes (human trafficking, terrorism, etc.)
  • Environmental issues

Supplier verification is based on the following items: financial performance analysis, tax compliance, CMPC obligatory registration record and a technical evaluation. Suppliers with a total score below 60% (bad or very bad) for 2 consecutive years or 3 times in a 5-year period cannot continue supplying CMPC.