New supplier requirements
Supply chain management
Suppliers must demonstrate their ability to provide EXFO with materials and services on a continuous and stable basis. We expect our partners to meet confirmed deadlines and to notify us immediately if they are unable to do so. Suppliers must have a plan in place to sustain any special situation that could affect EXFO’s supply chain for an extended period. On-time delivery is EXFO’s key supplier performance indicator.
Suppliers must also demonstrate their ability to adapt to unforeseen circumstances and setbacks due to occasional changes in requirements. We expect our partners to adequately manage their production capacity and inventory to minimize delays when changes are made to orders. Supplier flexibility is measured by monitoring suppliers’ average lead times.
Quality
We expect our partners to provide a level of quality that enables us to eliminate the costs associated with non-value-added incoming inspection and nonconformance management. Our suppliers’ manufacturing and quality control processes must allow us to inventory products upon receipt without any additional verification. Nonconformances are closely monitored and reported to suppliers immediately. EXFO expects prompt resolution of all quality issues.
As part of its Quality Policy, EXFO purchases only original equipment manufacturer components through approved distribution channels. Component distributors must demonstrate that they are authorized to sell a manufacturer’s components.
Adherence to ISO 9001 is highly valued.
Continuous improvement
As experts in their field, our suppliers are expected to ensure continuous improvement and make recommendations to reduce the total cost of ownership of their products throughout their lifecycle using known continuous improvement concepts, techniques and tools. A Continuous Improvement Policy is a cornerstone of a long-term partnership with EXFO. We are committed to reviewing our suppliers’ continuous improvement projects and working to evaluate and implement them.
Ethical and sustainable practices
We select business partners who share our values and principles regarding governance, ethics, social responsibility, environmental protection and occupational health and safety. EXFO abides by the principles of the UN Global Compact, and we require our suppliers to do the same. Our suppliers are also required to sign and adhere to EXFO’s Agent Code of Conduct before doing business with EXFO.
Environmental practices
Our partners are required to comply with applicable environmental laws and standards in the countries in which they operate, including REACH and RoHS for the elimination of hazardous substances, the reduction of power consumption and the recycling of packaging and raw materials. ISO 14001 certification or a robust environmental program is essential. We require regular reporting on our suppliers’ environmental performance, including energy efficiency, direct and upstream emissions and waste management.
Human rights, modern slavery and conflict minerals
EXFO is committed to challenging and confronting the use of forced, bonded, indentured or child labor in our organizations and our supply chains. In compliance with Canadian human trafficking legislation, we report annually on our supply chain and require our global suppliers to do the same. To learn more, please see our Modern Slavery Policy.
We do not purchase parts or products containing gold, tantalum, tin or tungsten from known conflict sources, and we expect our suppliers to adhere to the same standard. EXFO has adopted the Responsible Minerals Initiative (RMI) Standard Conflict Minerals Reporting Template, and we require our suppliers to use the same format when reporting their supply chain status to us.
Supplier diversity
EXFO’s policy is to provide diverse suppliers with the maximum practicable opportunity to provide goods and services to EXFO through our corporate procurement process. Partnering with diverse suppliers is an integral part of our purchasing philosophy. We believe that our shared success depends on enabling diverse businesses to grow in the global market.
Communication and collaboration
We value open communication. We evaluate the quality of our interactions with our suppliers to ensure that our partnership is adequately supported, and we appreciate proactive suppliers who provide value-added services in addition to their products.