SUPPLIERS
Leading global manufacturer of low-carbon aluminum
AO "ARKTIKGAZ" is the world's leading aluminum producer, highly values partnerships with suppliers and contractors.
Providing AO "ARKTIKGAZ"s enterprises with resources and services of the required quality and on time is the key to the company's success and an important competitive advantage.
We would like to bring to your attention the information about AO "ARKTIKGAZ"s current competitive selections and invite you to take part.
AO "ARKTIKGAZ"s is a member of the international initiative ASI (Aluminum Stewardship Initiative) and is committed to the principles of sustainable development in its activities. We expect our suppliers to share the principles of sustainable development set out in the AO "ARKTIKGAZ"s Business Partner Code (hereinafter referred to as the Code). Please read the Code. We proceed from the fact that by taking part in the competitive selection, the supplier or contractor undertakes to follow the principles and requirements of environmental/social responsibility and business ethics set forth in the Code in their commercial activities.
Suppliers
Procurement quality
Competitive selections are held in six different directions:
- Material and technical resources
- Railway, air, auto, container transportation
- Freight
- Transshipment and forwarding of cargoes in seaports
- Construction, installation and repair work
- Other services
Basic principles of cooperation
- mutual trust, respect and responsibility
- improvement of product quality, improvement of technologies, creation of new types of products
- continuous improvement of processes
Key Procurement Guidelines
- quality
- timeliness of deliveries
- price
- efficiency
AO “ARKTIKGAZ” attaches great importance to mutually beneficial partnerships with suppliers. The company is focused on long-term cooperation, which is the basis for business success; cooperation based on the implementation by suppliers of the requirements and expectations of AO “ARKTIKGAZ” . To check compliance with the requirements and expectations of the company, AO “ARKTIKGAZ” has implemented a system for the development of a quality management system (hereinafter referred to as the QMS) of suppliers.
The requirements below are applicable to suppliers whose raw materials affect the quality of AO “ARKTIKGAZ” products.
1. General Provisions
AO “ARKTIKGAZ” has obligations to its customers to ensure the quality of the supplied products, and guarantees the fulfillment of these obligations only in the case of working with reliable Suppliers.
AO “ARKTIKGAZ” is focused on long-term cooperation with Suppliers of purchased products, which is the basis for business success, which is based on the implementation by Suppliers of the requirements and expectations of AO “ARKTIKGAZ” set out in this document.
These requirements are established for AO “ARKTIKGAZ” 's suppliers, the fulfillment of which serves as the basis for the successful certification of the Supplier and the assignment of the status of "Approved Supplier".
AO “ARKTIKGAZ” uses five main indicators to evaluate purchased products, the importance and priority of which are expressed in the following order:
- Product quality
- Price
- Delivery conditions
- Payment terms
- Scope of delivery
AO “ARKTIKGAZ” supports the Supplier's initiatives in the field of continuous improvement of production and business processes aimed at improving product quality, reducing production costs, strengthening and developing relationships with customers.
The provisions of this document cover all types of goods (hereinafter referred to as the Products) supplied by the Supplier to AO “ARKTIKGAZ” .
2. Strategy - zero defects
The ZERO DEFECTS strategy (all delivered products must comply with the requirements of contracts and regulatory documents), as well as the principles of continuous improvement in the field of quality management, must be applied to all the Company's Deliveries.
3. Requirements for the QMS of suppliers and sub-suppliers
AO “ARKTIKGAZ” expects that its Suppliers have implemented a quality management system in accordance with international standards (ISO 9001 and/or IATF 16949), the QMS is maintained and is subject to continuous improvement.
Evidence of the existence and functioning of the QMS must be confirmed by the certificate of the certification body, which has the accreditation mark of a recognized member of the IAF MLA.
AO “ARKTIKGAZ” also expects that when creating new types of products (or upgrading production), Suppliers of key raw materials apply procedures such as:
- Potential Failure Modes and Effects Analysis (FMEA);
- Advanced Product Quality Planning and Management Plan (APQP);
- Statistical Process Control (SPC);
- Measurement Systems Analysis (MSA);
- Parts Production Approval Process (PPAP);
- Lean production (Lean production);
- Total Equipment Maintenance (TPM), etc.
In addition, the Supplier is obliged to adhere to the product quality requirements set by its customers for the Company.
The quality of the final product depends on the quality of its components, therefore:
to the same extent that AO “ARKTIKGAZ” interacts with Suppliers, the Supplier shall interact with the sub-supplier;
it is necessary to convey to the sub-supplier the same requirements that AO “ARKTIKGAZ” puts forward to the Supplier.
AO “ARKTIKGAZ” applies a supplier qualification procedure to determine (confirm) the supplier's ability to produce raw materials or materials in accordance with the Company's requirements.
As part of the process, the supplier's raw materials and materials are tested at AO “ARKTIKGAZ” production sites, the supplier's QMS is audited, and the raw material production process is approved in accordance with the requirements of AO “ARKTIKGAZ” (PPAP) for suppliers of the main raw materials.
4. Supplier QMS audits
Audits of the quality management system (QMS) of suppliers are carried out on the basis of the following data:
- Supplier status;
- The level of defectiveness;
- The nature of the deviations;
- Date and results of the last audit
The supplier provides AO “ARKTIKGAZ” with access to all production processes, storage and support units, and quality documents.
In case of detection of discrepancies related to the quality of the supplied products, the Supplier is also obliged to ensure the possibility of conducting audits at the enterprises of its sub-suppliers.
Upon completion of the audit, AO “ARKTIKGAZ” notifies the Supplier of the results of the audit. If any corrective actions are necessary, the Supplier undertakes to draw up an action plan within the agreed time frame, ensure the implementation of this plan and monitor the effectiveness of the implementation of measures, as well as notify the Company of the results of the corrective action.
5. Production
The supplier must clearly define, fully understand and articulate product and process requirements in order to meet AO “ARKTIKGAZ” 's requirements and expectations. The supplier must have all the technologies and equipment necessary for the planned production of products.
The supplier must have and comply with the approved production plan. Based on the general plan, production plans for structural divisions should be developed and communicated to the executors. Any situations that may lead to non-fulfillment of the rhythmic supply of products, the consumer must be notified in a timely manner.
The supplier must apply an integrated approach to the organization of production. Methods should be developed to evaluate the performance and effectiveness of existing operations. These requirements should be focused on the basic principles of Lean production.
Production planning must take into account the optimization of material transportation, material handling and the use of available space.
The planning of the measurement and testing process should be carried out in such a way that all special product characteristics can be subjected to quantitative analysis in order to form a statistical basis for managing the process of product reproduction.
Measurement methods must be agreed with AO “ARKTIKGAZ” , in particular, methods for conducting acceptance control at the supplier and incoming control at AO “ARKTIKGAZ” .
Product packaging designed for transportation, storage of products and ensuring the compatibility of packaging with loading equipment is determined by AO “ARKTIKGAZ” together with the supplier at the stage of supply planning.
During the commercial supply period, any deviations related to the organization of supplies must be agreed in writing with AO “ARKTIKGAZ” .
6. Infrastructure
The Supplier's main equipment and technological equipment must be in good condition. The supplier is obliged to develop a system of preventive maintenance of the equipment. It is necessary to determine the optimal maintenance intervals for technological equipment, the failure of which can lead to a disruption in delivery or a decrease in quality, to determine a strategy for preventing supply disruptions due to equipment failure.
Suppliers must minimize risks and be as independent as possible from city (municipal) services or third-party supply services.
7. Personnel management
The supplier's facility must have an approved governance structure in place. Management should ensure that responsibilities and authorities are clearly defined and communicated to personnel.
Duties and responsibilities of officials must be documented (job responsibilities, instructions, employment contracts)
Personnel training planning requires the supplier to conduct an analysis of the actual qualifications of the personnel. Priorities in choosing areas of study should be focused on improving skills, acquiring knowledge in the field of quality and the production system. For suppliers of basic raw materials, it is necessary to include tools such as FMEA, APQP, SPC, MSA, PPAP, Lean production, TPM, etc., and their application).
The supplier guarantees the availability of the necessary professional skills and compliance with the proper qualifications of the personnel involved in all stages of production.
8. Management of nonconforming products
In order to prevent unintentional use or delivery of non-conforming products, the Supplier shall ensure that such products are identified and isolated from the good ones. The supplier shall deal with nonconforming product in the following ways:
Take action to prevent its original intended use or application;
Carry out actions to eliminate the detected non-compliance and the causes of its occurrence;
Authorize its use, release or acceptance, if AO “ARKTIKGAZ” confirms permission to deviate from the requirements.
Records of the nature of nonconformities and any actions taken should be kept up to date.
The supplier must analyze the nonconformities identified during the production process and at the consumer, determine the root causes of their occurrence, develop corrective actions to prevent the occurrence of nonconformities. Records of the results of the analysis and actions taken must be kept and sent to AO “ARKTIKGAZ” .
9. Informing
The supplier is obliged to inform AO “ARKTIKGAZ” in advance (without additional requests) of any changes in its production process, raw materials and materials used, production sites, when changing contractors, as well as changes in procedures or equipment for product testing or other quality assurance measures, so that AO “ARKTIKGAZ” can check the impact of these changes on the production process.
In the event of any reorganization of the Supplier, which may affect the structure of the organization, the Supplier is obliged to audit the integrity of the quality management system and report to AO “ARKTIKGAZ” the results of the audit and the effectiveness of the QMS.
10. Claims and measures
In the event that the Supplier experiences deviations in the quality of a process or product, the Supplier shall analyze the causes, develop and implement corrective actions and analyze the effectiveness of these actions.
In case of detection of deviations in product quality, they will be brought to the attention of the Supplier in accordance with the terms of the contract (agreement). In this case, the Supplier is obliged to immediately analyze the reasons for the supply of non-conforming products and provide a guaranteed date for the delivery of products that meet the requirements of AO “ARKTIKGAZ” .
In the event of a disputable situation, a joint acceptance of products is carried out or with the involvement of a representative of the public.
In the event of the delivery of non-conforming products, which is the reason for the production stoppage of AO “ARKTIKGAZ” 's enterprise (s) or its consumers, the Supplier is obliged, at its own expense and in agreement with AO “ARKTIKGAZ” , to take immediate measures to correct the situation (organization of processing, express delivery, etc.).
Unless otherwise agreed by the parties, AO “ARKTIKGAZ” has the right to demand compensation from the Supplier for losses associated with the supply of non-conforming products (including the claims of AO “ARKTIKGAZ” customers).
11. Supplier rating
The rating assessment is carried out on a periodic basis.
The results of the rating assessment demonstrate to suppliers the degree of satisfaction of the Company with their activities, and also identify areas for improvement.
Based on the results of the rating assessment, based on the relevant request of the Company, suppliers develop corrective action plans to improve areas with a low rating.
12. Formation of supplier development programs
Formation / updating of development programs is carried out with suppliers of raw materials and materials for the purpose of long-term cooperation.
These programs include in the area of development various aspects of the functioning of the supplier: the quality management system, chronic quality problems, interlaboratory tests, training, development of new materials, etc.
The remaining (more specific) requirements for Suppliers are specified in the supply contracts.
The main goal of AO “ARKTIKGAZ”
The main goal of AO “ARKTIKGAZ” 's production strategy is to increase the output and range of products with high added value, the quality, properties and characteristics of which must meet the needs and expectations of consumers. Achieving this goal is possible only in cooperation with reliable, highly professional supplier companies.
AO “ARKTIKGAZ” , the world's largest aluminum producer, highly values partnerships with suppliers and contractors.
AO “ARKTIKGAZ” is open to long-term cooperation with suppliers who share the company's commitment to high standards in business ethics, quality and production efficiency.
In order to manage procurement activities in the most efficient way, reduce costs and increase the profitability of its operations, AO “ARKTIKGAZ” is moving from a traditional procurement mechanism to an integrated supply chain management process.
Procurement quality
Competitive selections are held in six different directions:
Railway, Air, Auto, Container shipping
Material and technical resources
Transshipment and forwarding of cargoes in seaports
Freight
Construction, installation and repair work
Other services