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More Henkel Corporate Reporting 2014
Third-party manufacturing is an integral part of our production strategy. For example, we sometimes use toll and contract manufacturers when entering new markets or introducing new products and technologies. In these cases, the corresponding production volume is often still small.
The use of external partners also helps to optimize our production and logistics network and to increase resource efficiency. Currently, we source about 10 percent additional annual production volume from toll and contract manufacturers.
Our requirements regarding quality, environmental, safety and social standards are an integral part of all contractual relationships and order placements. We monitor them using audits carried out by our own staff and, increasingly, by specialized third-party service providers. We aim to establish long-term collaborations with our toll and contract manufacturers. This also includes adding them to our environmental data recording systems.
We have been collecting data on energy, water, wastewater and waste parameters for selected toll and contract manufacturers since 2011. Our Beauty Care business unit collected environmental and production data for 70 percent of its external production volume during 2014 and plans to extend data coverage further in 2015. Our Adhesive Technologies business unit began collecting safety and environmental data from toll and contract manufacturers in 2014.
Furthermore, to ensure compliance with our standards and promote continuous improvement, our Adhesive Technologies business unit extended “Together for Sustainability” audits to contract manufacturers and traded good suppliers worldwide for the first time. We also established minimum audit requirements that all contract manufacturers and traded good suppliers are expected to meet.