Partnerships bolster security of supply

Responsible supplier partnerships bolster security of supply

At the BIRN Group, working with suppliers is a cornerstone of the Group’s strategy. Therefore, it is crucial to have strong and responsible supplier collaborations that comply with our Code of Conduct and contribute to stable security of supply across the companies.

Our Code of Conduct is a central part of the process when the BIRN Group selects new suppliers. This entails that all suppliers commit to observing the Group’s ethical and environmental guidelines and must document this as part of the collaboration.
For suppliers who provide critical components and materials, physical audits and factory approvals are also performed to ensure compliance.

“As we sharpen our focus on sustainability, we are also placing new demands on our suppliers. For example, our carriers must be able to document their carbon footprint through accounting practices, in order to support the group’s contribution to the green transition,” notes Jesper Astrup, Group Purchase Manager at BIRN Group.

BIRN Group works closely with suppliers to ensure a stable supply chain. A key element of the group’s procurement strategy is dual sourcing, whereby key materials and components are supplied by multiple suppliers, to reduce the risk of dependence on one source.

“We actively use quarterly agreements, to ensure that our suppliers have the necessary quantities in stock to create a more robust supply chain. Close dialogue with suppliers is crucial, and if there are any deviations in the forecasts, the close collaboration ensures quick and efficient resolution,” says Jesper Astrup.

Synergies and common systems across the group. 

Cooperation between BIRN Group companies is a key part of the group’s procurement strategy. Work is currently being carried out on a common procurement system, that will ensure a better overview and uniform agreements across the companies.

“A centralised portal will give us a more efficient way of sharing supplier agreements, so all companies can benefit from the best prices and solutions. For example, if an employee needs safety shoes, the portal can quickly show them which suppliers offer the best solutions. This not only saves costs, but also strengthens collaboration within the group,” says Jesper Astrup.

As part of the strategy, a procurement portal has already been implemented at BIRN in Holstebro, and a similar solution
will be rolled out to the subsidiaries during 2025.