To build up harmonic and equitable relations with our providers and independent contractors, within a responsible production chain that seeks to implement the best practices in work, social and environmental aspects. In order to ensure a responsible value chain, we select, monitor and assess our suppliers and independent contractors through equitable and competitive processes that take into account criteria of sustainability. By strengthening our relation, we work with them on building the capabilities that allow us to grow together, reduce associated risks and ensure the continuity of our operations.
Mit: Supply Chain Sustainability Index
At Argos, we manage our providers through processes of preselection, general performance assessments, administrative audits (specific and on site, through different mechanisms) and follow-up on certifications, which allows us to identify risks associated with environmental, economic and social aspects, discover the main causes that lead to them and define internal strategies and specific practices that must be complied with by providers in order to mitigate them, all the while ensuring reliability and sustainability in the rendering of services and the availability of materials, equipment and spare parts for our operations.
Last year, we implemented a new tool aimed at assessing providers, developing a Sustainability Index with the Massachusetts Institute of Technology, whose main objective it is to identify the risk associated to each provider in the dimensions prioritized by the company, in order to then define action plans that allow them to improve their management. This index was applied to the 35 most representative suppliers of certain critical segments in the Colombian Regional Division and showed that their performance was highest in the environmental dimension, followed by the social and economic dimension, respectively.
In order to strengthen this practice, we will continue to apply this sustainability index for critical providers of the Colombian Regional Division and we will start implementing it in the US and Caribbean and Central American Regional Division in the medium term. Furthermore, we will update our risk map annually, in accordance with the new provider base, and we will replicate this methodology in the US and Caribbean and Central American Regional Division.
Argos Innovation Center
Argos has created a place of convergence for the cement and concrete industry’s challenges and academic solutions, promoting the discovery of new ways of using these materials, which are key to development.