Cascades operates in the competitive environement of commodity products. With procurement representing 40% to 80% of the total costs of production, the choice of suppliers is a strategic decision which has a major impact on the Corporation's overall performance.
The Corporate Procurement Department strives to build and maintain a network of suppliers that supports the Corporation in meeting its ongoing competitive challenges.
Suppliers: the key to our success
The performance of Cascades’ suppliers has a strong influence on the Corporation's ability to manufacture quality products at a reasonable cost, making it a determining factor in its success. Many factors are taken into consideration in the selection of suppliers, including quality, cost, product availability, product performance, shipping timelines, shipping reliability, technical capacity and customer service. Criteria vary depending on the products purchased.
Other intangible criteria include reputation, corporate identity and business practices in regard to the environment, working conditions, human rights, the supply chain, governance and ethics.
CASCADES’ SUSTAINABLE PROCUREMENT PRACTICE
Cascades believes that its supply chain must reflect the deep commitment it has to sustainable development. For this reason, we have implemented a sustainable procurement practice that ensures that Cascades works with suppliers that meet the Company’s expectations in regard to transparency, the use of responsible products, and respect for the environment, employees and the community.
Supplier evaluation methods: weighted linear models
When choosing a supplier, Cascades begins by subjectively assigning a weight to each criteria, based on the product purchased. Points are added up for each supplier by taking the performance sum for each criteria and multiplying it by the appropriate weight. Several years ago, Cascades decided to make social responsibility an essential criterion for suppliers, with a 15% maximum weight in the total points used in decision-making. When this method is used, a supplier with good business practices and established environmental, social and economic management systems is placed in a more favourable position than a supplier who has put less effort into these areas.
Cascades is assisted by EcoVadis for the evaluation of suppliers' social responsibility. For each new call for tenders, suppliers wishing to participate must fill out a questionnaire based on 21 parameters. Cascades can access the suppliers' results using EcoVadis' customer portal. The suppliers, who pay for the cost of the evaluation, get to keep the results. They can then send these results to companies that have requirements similar to Cascades'. This model allows us to assess a number of procurement criteria, both quantitative and qualitative, at the same time. By evaluating a supplier's social responsibility criteria, Cascades is able to develop a profile of the supplier's level of maturity.