Manufacturing and processing of chemical substances is the core business of our Company, and one of the most important, strategic business areas include purchases of raw materials made as part of the current purchasing strategy.
The supply of raw materials necessary for production is not only a matter of ensuring the continuity of the supply chain, but also a key element of the Company’s integrated purchasing strategy. Most of our products require specialized, often hard to access raw materials, and the profitability of our production is strongly dependent on the cost of obtaining raw materials and the logistics associated with them.
The process of supplying raw materials is very often connected with making many very difficult business decisions. They influence both the manufacturing costs as well as the final quality of our products. Cooperation with our suppliers takes place on the basis of the General Terms and Conditions of Purchase (GPC), which are available to all interested parties on the Company’s website. The selection and qualification of suppliers is based on existing internal procedures, which define the most important aspects of cooperation in the areas of quality, logistics and the principles of purchasing transactions.
Taking care of the quality of our business relations and the promotion of good practices, we have developed a Supplier Code of Ethics, which describes the minimum requirements of PCC EXOL S.A. with respect to the conduct of suppliers in accordance with the values and principles of social responsibility and sustainable development.
All our suppliers are required to comply with all applicable laws and regulations, regardless of the provisions of the Supplier Code of Ethics.
As part of our intensified activities in the area of Corporate Social Responsibility (CSR), we have developed a survey aimed at assessing the extent to which our company’s requirements have been met and suppliers are members of organisations and initiatives in these areas:
Local Communities
Employees
and workplaces
Environment
Other actions
The results of the survey form the basis for the evaluation of CSR practices applied by suppliers of raw materials and are included in one of the adopted methods of communication and dialogue with stakeholders. The results obtained from the collected surveys may influence the final assessment and qualification of a given supplier in the event that it does not conduct any activities or initiatives in the area of good CSR practices.
The Company’s purchase strategy in this area is based on a long-term purchase contract with the main supplier. We also supply from other European contractors on the basis of spot contracts, in order to diversify and ensure security of supply in case of short-term stoppages at the main supplier.
Deliveries of natural fatty alcohols are based on short-term contracts. Currently, the Company’s suppliers are both producers from Southeast Asia and Western Europe. This allows for diversification of sources of supply and optimisation of purchase costs, as well as shortening the delivery time. A factor influencing the price of this group of raw materials is CPKO quotations (crude palm kernel oil/raw palm kernel oil).
Coconut oil is a vegetable oil obtained by pressing and heating the hard flesh of coconuts (Cocos nucifera L.) – copra. It is most often found as refined, deacidified and bleached, while in liquid form it is slightly yellow. In the chemical industry it is considered to be an ecological raw material and is used in the production of fatty acids and alcohols. Coconut oil is also widely used in the food industry.
Taking care of the quality of business relations with our suppliers, we will implement the PCC EXOL S.A. Supplier’s Manual.
As a manufacturer in the chemical industry, we are aware of the fact that our production involves a demand for specific, often inaccessible raw materials. Competition in the market for certain raw materials is therefore very low. Continuous search for new sources of supply is one of the biggest challenges we have to face in our day-to-day operations.
