We collaborate as partners with our suppliers to make sure they are able to meet our high sustainability criteria with measures like our development program for key strategic suppliers. Under this program we work together to come up with solutions for topics such as environmental protection, working hour regulations, and occupational health and safety. Better working conditions have a positive influence on employee loyalty and motivation, raise productivity, and improve the quality of products; a clear win-win situation for our suppliers as well as for our company. In April 2017 we welcomed three new suppliers in China to the program, which now counts 14 suppliers. The new participants are currently working on creating their CR improvement plans.
Improvements achieved in 2017
The program's successes are tangible. During the operational review meeting in November 2017 in China, we evaluated last year's results together with the suppliers. As in previous years, the program suppliers achieved significant improvements*, such as the following:
The suppliers were once again honored for their performance in 2017. Significant and meaningful improvements of social or ecological aspects by our suppliers resulted in notable cost savings in 2017. Since the start of the program, total savings amounting to double-digit millions (in euros) could be achieved.
* All figures and success stories pertain to one year and to specific suppliers (i.e. the above numbers do not represent cumulative statistics for all program participants).
The diagram shows the areas in which we audit the suppliers participating in our program. Using the results, we work with them to develop a plan for remedying any issues. Suppliers receive support from Deutsche Telekom experts as well as professional external consultants in applying these measures. All activities and results are documented so that we can gauge the effectiveness of the measures employed. These are corrected, if needed.
We want to establish our supplier program as an industry-wide approach in 2018 using the GeSI ICT sustainability initiative. Participating suppliers will be trained using a web-based tool. After completing the training successfully, they will be able to use the tool independently so that they can in turn train their own suppliers. This way we hope to achieve larger economies of scale.