Supply Chain Management
Ashland's Supply Chain
As an important business partner, Ashland's suppliers play an integral role in our overall success. Ashland's global operations require that we enter into relationships and conduct business with thousand of suppliers that provide services and materials to support our businesses. Our purchasing function collaborates with suppliers around the globe to help our businesses meet their objectives for profitability, growth, innovation and sustainability!
Ashland purchases basic raw materials that are processed through many stages to produce a number of products that are sold as either intermediates or finished products at various points in those processes. Ashland spends approximately $2.4 billion per year for raw materials to support our businesses.
Several of the primary raw materials used by our business are as follows:
Ashland Specialty Ingredients: Natural and synthetic and semisynthetic polymers derived from plant and seed extracts, cellulose ethers and vinyl pyrrolidones, as well as acrylic and polyurethane-based adhesives.
Ashland Performance Materials: Styrene, butane, maleic, propylene glycol and phthalic anhydride.
Supplier Code of Conduct
In order to continue to honor our values and principles, Ashland has decided to conduct business with suppliers who share a similar commitment. In 2014, Ashland issued a Supplier Code of Conduct that outlines what Ashland expects from its suppliers with respect to labor and employment rights, environmental, health and safety, business ethics and social responsibility, and global trade practices. Suppliers are expected to adhere to this code, and must operate in full compliance with the laws and regulations of the countries they operate in. Our goal is that our suppliers, who are integral to Ashland, will embrace these values and share our commitment to sustainability.
Ashland engages with new and existing suppliers worldwide. Our sourcing managers within each of our commercial units are responsible for the selection of suppliers. All potentially new suppliers are screened and required to provide information about their environmental, health and safety practices and confirm that they are compliant with applicable regulations. The requirements of the Code of Conduct are built into our supplier contracts to ensure that they are contractually enforceable. Where Ashland utilizes external manufacturing of its products at a third-party site, periodic audits are conducted to ensure adherence to the above practices as defined in our Code of Conduct.
Supply Chain Security
The security of our employees, operating facilities, products and supply chain is of utmost importance to Ashland. Throughout our supply chain Ashland applies various security standards, wherever we operate throughout the world. Ashland adheres to the following security standards and guidelines:
- American Chemistry Council's (ACC) Responsible Care® Security Code
- Department of Homeland Security (DHS) Chemical Facilities Anti-Terrorism Standards (CFATS)
- United States Coast Guard Maritime (USCG) Transportation Security Act
- Tier II Customs-Trade Partnership Against Terrorism (C-TPAT), a supply chain and border security program
- Authorized Economic Operator (AEO), a customs security program developed by the European Union
In addition, through our open and global reporting system employees, customers and suppliers can report on environmental, health & safety, security and compliance related concerns through 1-800-ASHLAND. Issues reported through our system are thoroughly investigated.
Ashland is fully committed to transportation safety throughout its supply chain and the reduction of risk to our employees, communities and the environment. Through our activities that reduce risk, we improve transportation safety performance, operate with improved equipment and enhance our emergency response capabilities. These activities include:
- A comprehensive qualification, selection and performance management program for our logistic service providers;
- Applying transportation security and safety standards that defines requirements for shipments made by Ashland;
- Working with TRANSCAER® by providing training to our transportation partners; and
- Implementation of a comprehensive crisis management plan that allows Ashland to quickly and effectively respond to a potential or actual crisis situation.
Our goal is to reduce Ashland's potential impact of our transportation activities by reducing in-transit releases. Ashland has a comprehensive program to prevent incidents during transportation, which includes:
- Collecting information on transportation incidents;
- Investigating and analyzing the root causes; and
- Developing and implementing corrective and preventive actions.
This program is not limited to transportation incidents, but also incidents that may occur at contracted warehouses and terminals.