Back to content Navigating a global supply chain under pressure in 2021 With no doubt, the global shortage of raw materials – for instance in the market for electronics, compound, paper, cardboard and precious materials, most of which we use in our products – is impacting supply chains and logistics all over the world. However, this has not im- pacted Demant sales, and we have successfully nav- igated the markets via close supplier relations and by thinking ahead. Indirect procurement Indirect procurement relates to goods and services which allow us to operate our business, like facility, IT and consultancy. Although we do not currently have a shared standard process for indirect suppliers in regard to the Demant Group Third Party Compliance Code to- day, we continue to work towards this. During 2021, we engaged in a freight partnership with a new supplier based on their ambitions towards sus- tainability and their ability to meet our business needs. As part of a wish to adjust to more sustainable methods of freight in terms of price, environmental impact and accessibility, we took – and will continue to take – mea- sures to transport products via ship and train rather than by plane. New suppliers in 2021 In 2021, we added eight new suppliers, mainly distributors as well as a few mechanical suppliers within Europe. The strains on global supply markets, especially in Asia, made it challenging to add new direct suppliers and consequently, we added European distributors to help us access suppliers within this region. We do not do audits of distributors, but perfrom due dilling- es as previously explained, as they are obliged to conduct their own manufac- turer and supplier audits. Demant ∙ Sustainability Report 2021 158
Download PDF file