Nordson Corporation

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NASDAQ $128.18   +0.00

Supply Chain

We recognize our responsibility to instill our entire supply chain with ethics, safety and compliance standards that reflect our values. It is part of Nordson's overall Corporate Responsibility & Sustainability strategy

Supply Chain

Overview 

Nordson Corporation purchases materials of the highest quality and safety by extending our high standards to more than 4,000 suppliers and vendors globally. We recognize our responsibility to instill our entire value chain with ethics, safety and compliance standards that reflect our values. 

Policies & Codes

At Nordson, we strive to deeply understand each of the relationships we forge with external parties, in particular our suppliers. To the greatest extent possible, we proactively screen potential suppliers for any unethical and/or irresponsible management practices prior to engaging in a contractual agreement.  We maintain this practice with the recognition that our long-term viability and reputation as a company is more valuable than short-term economic advantages. 

In addition to proactive screening of suppliers, all selected suppliers must read and agree to our Suppliers Code of Conduct, which includes legal compliance to Nordson’s ethics policies and safe, fair working conditions. Signing the Code also means our suppliers agree to our Policy Against Human Trafficking & Slavery for Suppliers, which aligns with the California Transparency in Supply Chains Act of 2010 and the United Kingdom Modern Slavery Act. These policies and disclosures demonstrate our commitment to preventing human trafficking, forced and child labor. Additionally, we expect our suppliers to demonstrate the highest standards of safety, and each supplier must adhere to our Contractor Vendor Safety Program.

Our Conflict Minerals Policy outlines our commitment to full compliance with the Conflict Minerals Rule and discusses how we commit to refrain from, directly or indirectly, taking or supporting any action which contributes to the financing of armed groups that are committing human rights abuses in certain covered countries. We evaluate our supply chain for the potential presence of conflict minerals and survey suppliers that may have conflict minerals in the products supplied to Nordson. If a supplier is found in violation of our policy, we take prompt measures to address the violation.

Internal Accountability

Senior management regularly reviews and communicates metrics regarding supply chain management at our global supply chain management quality meetings. Our Product Compliance Department includes regional Supply Chain Management teams who are responsible for logistics, procurement and compliance mechanisms surrounding our suppliers. This team communicates Nordson’s Restricted Substance Policy, in addition to other compliance requirements and expectations. The Product Compliance team also:

Determines the requirements of each business unit;
Conducts supplier assessments;
Creates contracts;
Monitors quality and compliance; 
Controls cost and commodity management; and 
Communicates regularly to ensure reliable flow.

We monitor our suppliers regularly through periodic audits and surveys regarding their compliance to our policies. We also request supplier self-audits with results. We train key supply chain personnel to identify child and forced labor, acts of bribery, etc. when performing an audit. If a supplier is not meeting our standards, we add that supplier to our Supplier Quality Watch List, which evaluates the supplier on quality cost, value, defects, complaints, return deliveries, and any other notifications of violation. Appropriate corrective actions are taken against suppliers who violate our Suppliers Code of Conduct, up to exclusion of business partnership if issues persist.

Supplier Lean Six Sigma Program

Our essential suppliers, identified by Nordson business units, are eligible to join the Supplier Lean Six Sigma Program. This program trains and certifies selected suppliers on the Lean Six Sigma continuous improvement method to optimize processes and provide higher quality products, benefiting their companies and ours. This program aligns with our Nordson Business System and nVision methodology. See our Innovation page for more information.  NEED LINK

Performance 

In 2016, we developed a supply chain management plan that includes goals to become a world class global procurement organization. These goals are to:

Improve supplier quality performance by 30% and supplier delivery performance by 50%;
Surpass purchased cost savings targets; and
Identify and eliminate or minimize critical supplier risk situations. 

Additionally, each year we set a continuous improvement goal regarding conflict minerals. Our Continuous Improvement team is expanding our master data management program to increase our information collection capabilities in procurement.
Six Sigma and Performance
For more information on supplier standards, visit our Suppliers page.