Compliance | Quality and performance | Labor, ethics and human rights | Performance management
Our company uses a number of tools to monitor supplier compliance with internal and external standards and laws. We also use our own scorecard, called CETRAQ, to assess supplier performance on cost, environment, technology, responsiveness, assurance of supply and quality. We use CETRAQ to better understand how our suppliers are doing on environmental and social responsibility, and to report the findings to our customers.
CETRAQ provides a supplier performance dashboard to help us quickly identify potential risks and underperformers. It also helps new suppliers understand our expectations, and shows existing suppliers how they rank and where they need to improve.
For our Education Technology suppliers, we use a similar process to verify that their products meet our deliverable specifications.
We review suppliers' CETRAQ standings and conduct internal and external audits as needed to ensure compliance with regulations and our requirements. We also perform the following assessments:
Laws and regulations vary depending on where TI operates. Site leadership teams are responsible for monitoring local legislation and ensuring compliance.
From a global perspective, our ongoing priority is to make sure that suppliers comply with all applicable local laws and regulations, including the previously discussed California Transparency in Supply Chains Act and U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act. Other specific laws and regulations include:
Quality and performance
We diligently screen and monitor both raw materials and manufacturing suppliers by:
- Ensuring that suppliers are International Organization for Standardization (ISO) 9001 or Technical Specification (TS) 16949 certified before engaging with them, unless the suppliers do not provide direct materials to TI and are considered non-critical.
- Examining environmental, safety and health policies, and evaluating related performance as part of TS 16949.
- Monitoring and verifying supplier compliance to ISO 9001 and TS 16949 quality systems for direct-material and critical suppliers.
- Gathering analytical data for six RoHS-banned substances to share as proof of compliance with customers who want more than certification as proof.
Additionally, we scrutinize the financial health of key suppliers to ensure that they can maintain product deliveries. After this assessment, we put contingency plans in place to prevent possible interruptions.
Labor, ethics and human rights
Until mid-2012, TI performed targeted on-site and/or electronic risk assessments to verify the integrity of suppliers' labor and human rights practices and to identify whether they maintain a documented ethics and compliance program. Using Transparency International's Corruptions Perception Index, we identified high-risk regions known for inadequate labor practices. Suppliers operating within these areas received additional scrutiny.
After we joined the Electronic Industry Citizenship Coalition (EICC) later that year, we began implementing the full requirements of EICC membership. This includes having our first-tier suppliers complete a self-assessment questionnaire on their practices.
We recognize outstanding suppliers each year by giving them a TI Supplier Excellence Award. We select suppliers based on several criteria, using the principles of our CETRAQ supplier scorecard: cost, environmental and social responsibility, technology, responsiveness, assurance of supply and quality.
Conversely, vendors that do not comply with our standards, laws or regulations must put corrective action plans in place within a specified time period or risk termination of the relationship.