Interacting with suppliers to support our business and meet its objectives of profitability, innovation and sustainability.
At Novelis, Procurement interacts with suppliers around the world to support our business and meet its profitability, innovation and sustainability objectives. Procurement also expects to establish business relationships with suppliers that focus on:
- Collaborating with Novelis to create competitive advantages and improve product performance
- Establishing reliable and consistent supplier relationships
- Having the capability to provide solutions for goods and services required in our operations on a local, regional and global basis.
- Supporting Novelis in its Sustainability efforts and maintaining responsible and ethical business practices (See Novelis Supplier Code of Conduct)
In 2009, Novelis launched a global procurement transformation initiative to develop world-class support processes. The new organization is a category model with a strong strategic sourcing team in both the central headquarters and the regions. There is also a clear distinction between strategic sourcing and transactional activities.
The primary goal of the transformation is to improve the efficiency of the Company’s procurement activities through a strategic approach to sourcing and the streamlining of transactional processes.
Procurement’s mission is to provide our customers (Novelis Value Streams, Plant Operations and Corporate Offices) with the best value for procured goods and services while creating a sustainable competitive advantage in our global business.
Procurement has lead roles in each region for non-metal procurement. Procurement also has central lead roles for the global sourcing of metal and non-metal commodities, such as can coatings and mill rolls.
Our purchasing categories are managed on a Global, Regional or Local level. The level is determined by the market structure and vendor capabilities.
The following Metal and Non-Metal categories are managed globally/regionally:
|Global Metal Categories||Global Non-Metal Categories||Regional Non-Metal Categories|
|Sheet Ingot||Can Coatings||Chemicals|
|UBC/Scrap||Cast house & Remelt supplies||Contractors & Services|
|IT||Metal Services or Tolling|
|Water Treatment Chemicals||Transportation|
Novelis has operations across the world. For more details on the regions and countries in which we operate, please see our Geographic Locations page.
Most of the Global team members are based in our headquarters in Atlanta, while most of the Regional team members are located in the regional headquarters or the plants.
If you are interested in becoming a Novelis supplier, and would like to contact Procurement, please see our contact page to request to be a Novelis Supplier.
At Novelis, we are guided by our company values and Code of Conduct. Every employee at Novelis is held accountable for following these principles.
Integrating sustainability — including environment, health and safety — into our core strategy helps us create one cohesive idea out of social and financial performance. We expect to meet our all of our legal obligations regardless of where we do business, and to always respect members of the communities that have welcomed us around the globe. In Procurement, we aim to apply these values and expectations to our supply base, so that economics will not be the sole source of our decisions. We wish to establish relationships with our suppliers that:
- Generate competitive advantages and improve product performance
- Foster mutual sentiments of reliability and respect
- Have the capability to induce innovative solutions
- Support Novelis in its Sustainability efforts and maintain ethical business practices (See Novelis Supplier Code of Conduct)
Through our Strategic Sourcing process, we optimize our supplier base by identifying suppliers with local, regional and global capabilities. This ensures that we can consistently support our operations. However, due to the nature of some goods and services required by our operations, we will continue to have a relatively small portion of our spending from locally-based suppliers in the countries were we operate.
We expect all suppliers to comply with our Supplier Code of Conduct. For more on the Novelis Supplier Code of Conduct, please see our Supplier Ethics page.
Regarding suppliers of direct materials and critical supplies, additional requirements may be expected. Examples of these additional requirements include:
- Supplier and product qualification processes
- Performance management requirements
- Innovation that adds value to the supply chain, including new ideas, concepts, processes, products, etc.
- Aligned business management strategies that promote long-term vision and continuous improvement
- Aligned business sustainability targets
- Supplier Certification – following environmental regulations and other policies that influence our business
What you can expect from Novelis
By adhering to Novelis’ requirements, suppliers can expect:
- Fair and equal treatment
- Continued, mutually beneficial relationships
- Opportunities to participate in future Request for Quotations and Proposals
- Consideration as a potential supplier for future requirements and innovation
- Unwavering reverence for established agreements
Our five core values—Integrity, Commitment, Passion, Seamlessness and Speed—are aligned with those of the Aditya Birla Group. They underpin everything we do and set our standards of behavior and performance.
As individuals and as a company, we live by these values every day. Each employee is held accountable for adhering to these principles, and we seek to work with partners that share similar personal standards.
- Novelis has an Employee Code of Conduct, which applies to all employees of Novelis Inc. It also applies, to the extent permitted by applicable law, to the Company’s subsidiaries and affiliates.
- Additionally, we have a Code of Ethics for Senior Financial Officers, which reflects our commitment to financial integrity in compliance with accounting policies, laws and regulations. The Code of Ethics also sets specific principles to guide the performances of the company’s senior financial officers.
Supplier Code of Conduct
Our Supplier Code of Conduct applies our ethical principles to our supply chain. The Supplier Code of Conduct has been developed based on our Code of Conduct and the United Nations Global Compact (UNGC), of which we became a signatory in 2011. We expect all our suppliers to comply with the Code of Conduct, including metal and non-metal suppliers. We expect each supplier’s legal representative to sign and return a copy of Acknowledgment to Novelis, confirming the suppliers’ understanding of the Supplier Code of Conduct.
The Supplier Code of Conduct is available for download in the following languages:
We support dialogue on developing low-carbon solutions and increasing post-consumer recycling programs. Nearly all of our advocacy is conducted through aluminum associations. We also have a government affairs resource in Brazil, and we engage a part-time consultant in Washington, D.C. These parties track environmental regulations and other policies that influence our business, allowing us to adjust our practices when appropriate.
Act with Integrity and in the Best Interest of Novelis
Novelis Code of Conduct has a section entitled “Act with integrity and in Novelis’ best interest.” Two topics within this section are especially important for Procurement and when dealing with suppliers:
- Conflicts of Interest: Employees must avoid taking any action that creates, or might appear to create, a conflict between their own interests and the interests of Novelis.
- Gifts and Gratuities: Employees must exercise caution when dealing with gifts, gratuities and other forms of special benefits given to, or taken from, customers, suppliers or competitors; acceptance or provision of such benefits can be construed as an attempt to secure favorable treatment. Suppliers are discouraged from offering any gifts or gratuities to Novelis employees.
We expect our suppliers to respect these rules when dealing Novelis.
(Note: This program is for suppliers in South America Only)
To further improve our partnership, we created Vox Novelis: a new and dedicated ethics hotline through which possible violations of Novelis policy can be reported. Vox Novelis is a confidential service staffed and managed by a specialized and exempt third-party provider. Security in handling sensitive information is one of the hotline’s key priorities.
Vox Novelis is a pilot program available only for Novelis South America suppliers
Suppliers can contact Vox Novelis through any of the following channels:
Toll-free number: 0800-200-7170
(available from 8.30am to 5.30pm, from Monday to Friday, only for calls from Brazil)
Mail: P.O. Box 79518, Zip Code 04.711-904, São Paulo, SP
Sustainability has been a key value of our company since its founding, and over the years we have pushed ourselves to improve our performance in many areas.
Novelis has created a solid foundation on which we can continue to build a sustainable company. But we recognize that simply enhancing the sustainability of our own business will take us only so far, and that such a narrow approach would address neither our entire supply chain nor our societal obligations.
Since issuing our first sustainability report in 2011, we have compiled a comprehensive set of sustainability goals. At the core of these goals is our pledge to use 80% recycled aluminum inputs in our manufacturing processes by 2020. This will halve the amount of embedded carbon emissions released by our products and help our customers reach their own sustainability targets.
At the core of these goals is our pledge to use 80% recycled aluminum inputs in our manufacturing processes by 2020.
We are also aggressively pursuing other goals that touch all areas of business—from our employees’ health and safety, to water usage and community engagement. Reaching these goals will ensure that we fulfill our commitments and meet the expectations of our key stakeholders.
To achieve our goals, we will need to develop additional partnerships with customers, suppliers and consumers. In essence, this is about taking a life cycle approach and addressing sustainability throughout our supply chain.
Sustainability at Novelis and Extension to Supply Chain
After reviewing the key material issues facing our company and our stakeholders, we identified that two key issues, our carbon footprint and resource availability, could both be addressed through increased recycling. Additionally, we saw opportunities to improve in areas such as reporting on performance and identifying procedural needs.
Novelis sees sustainability a high priority not only for the benefit of our business, but also for the benefit of the entire aluminum industry. Our sustainability goals and priorities align with the values and initiatives of aluminum and recycling industry associations, such as:
- European Aluminium Association
- Aluminum Association
- Bureau of International Recycling
- Institute of Scrap Recycling Industries, Inc
We have developed performance targets to drive us toward significantly greater sustainability by the year 2020. Using an average of fiscal years (FY) 2007–2009 as our baseline year, we have developed financial, environmental and social targets as outlined here.
As aluminum is infinitely recyclable, it is the material of choice for balancing the demand of a growing economy with the need to preserve the environment. We must take into account the different sustainability impacts of sourcing the goods and services required by business in Novelis.
No other material offers the versatility and environmental benefits of aluminum.
Through time, Novelis Procurement will aim to develop relationships with those suppliers that align with our Sustainability values in order to help Novelis achieve our sustainability goals and also help to drive sustainability throughout our supply chain.
To learn more about Sustainability at Novelis go to the Sustainability section of our website.
Novelis Procurement uses its Global Procurement Contract and Terms & Contracts templates to increase the effectiveness of our Procurement activity. The templates also facilitate consistent approaches and practices across Procurement and help create a clear message in the market.
In 2009, Novelis Procurement and Legal established new Global Procurement Contract and Terms & Conditions templates, which are now the initial point of negotiation for any supply agreement with Novelis. This initiative was a significant step toward becoming a world-class Procurement organization.When the organization transformation launched in 2009, it became clear that the Procurement team needed to institute common practices and procedures to truly operate as a global unit.
We also recognized that establishing such procedures would increase the productivity and effectiveness of our Procurement activity and ensure a clear, unified ONE NOVELIS message in the market.
This initiative should help form a clear identity in the market, as well as answer questions regarding our requirements and how we do business.
The main objectives of this initiative are listed below:
- Create consistent approaches and practices across the procurement organization worldwide
- Form a clear, unified ONE NOVELIS message in the market
- Set standard global templates for each type of document
- Construct regional versions of the templates that address local legal nuances and customs
- Determine a defined process that will be implemented in every region
With this initiative in place, any future negotiation with Novelis will be based on our Contract and Terms & Conditions templates.
Suppliers will eventually see these templates during negotiations for future supply agreements.
Suppliers already doing business with Novelis may obtain the Procurement Terms & Conditions, depending on the policies of the local Novelis location.