Supplier requirements

Danfoss aims at developing long-term relationship with key suppliers to enhance business opportunities.

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Partners in quality

We expect our suppliers to uphold world-class standards in their quality systems and control to ensure:

  • Compliance with IATF 16949 expectations
  • Move towards a Zero defect mindset and systematic failure detection

Danfoss constantly strives for ways to make our production as efficient as possible and to ensure that our products are in line with the customers’ highest expectations.


Our suppliers must offer

  • Technological standards corresponding to the requirements of advanced and highly automated production
  • A global presence and orientation to meet our logistical needs
  • Innovative solutions to products and production
  • Strong logistic capabilities
  • High-quality products and services
  • Competitive pricing practices

Supplier requirements

We require our suppliers to meet our standards in business practices, environmental requirements and labor welfare.

 

Ensuring responsible supplier management

The Danfoss Code of Conduct for Suppliers defines our environmental and social requirements. All suppliers are required to sign the Code of Conduct, and we perform regular supplier audits to verify compliance. Supplier risk assessment forms the basis for measures taken with the individual supplier. The risk assessment model includes the location of the supplier, which ensures that the highest priority is given to suppliers in the areas that pose the greatest risk of non-compliance.

Danfoss Procurement has dedicated specialists to handle supplier assessment. They ensure that the entire supply chain complies with the 10 principles of the UN Global Compact.

Danfoss Code of Conduct v.7.3 - English version Danfoss Code of Conduct v. 7.3 - Russian version

Supply Network Collaboration (SNC), Evaluated Receipts Settlement (ERS), Advance Shipping Notification (ASN) and Electronic data interchange (EDI)

This is only used in Danfoss Power Solutions segment, but more segments are to be implemented soon.

Supply Network Collaboration (SNC) is a web-based collaboration platform through which we can provide our direct material suppliers with order and forecasting information.  

The platform enables our suppliers to access our orders, Advanced Shipping Notification (ASN), Evaluated Receipts Settlements (ERS), goods receipt dates as well as purchase order history.