Inside BMW's supply chain

Having featured in the top 10 luxury car supply chains worldwide, Supply Chain Digital takes a closer look at BMW.

The German automaker, BMW, is a global brand. Working with 12,000 suppliers in 70 countries, the firm has a worldwide supplier network that makes a significant contribution to value creation, quality and innovation.  

In a bid to ensure a holistic approach to sustainability throughout its supplier network and guaranteed continuous improvement, BMW manages and minimises risk by identifying potential sustainability risks throughout its supply chain. Since 2009, the company’s suppliers have been asked to assess their sustainability management to ensure that production facilities at risk of breaching sustainability requirements are subject to independent audits. BMW seeks to take advantage of opportunities and work with suppliers to leverage the potential in resource efficiency, training employees and suppliers as well as an active involvement in initiatives with stakeholders. 

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BMW values its sustainability risk management. Its core requirements for all its suppliers are:

• Identifying risks.

• Conduct self-assessment.

• Conducting assessments and audits.

Speaking to Automotive News, Murat Askel, BMW Americas senior vice president of purchasing and supplier network, said: “Without the supplier, we won’t be successful. The supply chain is the heart of the business.”

The firm is conducting in-depth supply chain assessments in a bid to safeguard specific supply chains. The assessments are conducted around products, which have been defined as sustainability lighthouse projects and prioritised in terms of the level of risk. BMW has taken part in the Supply Chain Program of the Carbon Disclosure Project (CDP) since 2014 and has already achieved a CO2 reporting for 77% of the BMW Group purchasing volume by its suppliers.

For more information on all topics for Procurement, Supply Chain & Logistics - please take a look at the latest edition of Supply Chain Digital magazine.

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Image: BMW Media.