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Supplier declaration: definition & important aspects
Supplier declaration in a nutshell:
A supplier's declaration is a legally binding document that confirms the preferential origin of goods in international trade. For purchasing, it is essential for securing customs concessions and for fulfilling legal obligations to provide evidence in international trade.
Example: A German automotive supplier issues its customer with a long-term supplier's declaration for the period 01.01.2023 to 31.12.2023, which confirms the EU preferential origin for delivered brake components worth 2.5 million euros and thus enables a customs saving of 6.5%.
Contents
Introduction to the supplier declaration for purchasers
What is a supplier's declaration?
A supplier's declaration is a formal document issued by the supplier and contains detailed information about the origin, production conditions and compliance with certain standards of the products supplied. It serves as proof of compliance with legal requirements, such as customs regulations, and helps companies to ensure transparency and responsibility in their supply chain.
Main components of a supplier's declaration:
- Product description: Detailed information on the product supplied, including specifications and quantity.
- Country of origin: Information about the country in which the product was manufactured.
- Production conditions: Description of production processes, working conditions and environmental standards.
- Certifications: Listing of relevant certificates, such as ISO, Fair Trade or other industry-specific standards.
- Declarations of compliance: Confirmations of compliance with legal and regulatory requirements.
Importance for buyers:
- Ensuring compliance: Ensuring that all legal and regulatory requirements are met.
- Sustainability and ethics: promoting ethical procurement practices and sustainable production.
- Quality control: checking product quality and compliance with standards.
- Risk minimization: Identification and reduction of risks in the supply chain through transparent information.
Creation and management:
- Request by the purchaser: The purchaser requests the supplier's declaration from the supplier.
- Checking the information: Careful checking of the information provided for completeness and accuracy.
- Archiving: Systematic storage of supplier declarations for future references and audits.
Best Practices:
- Standardization: Use of standardized formats and templates to facilitate comparability.
- Regular updates: Ensure that supplier declarations are always up-to-date and relevant.
- Integration into supply chain management: Integration of supplier declarations into the overall supply chain management strategy to improve traceability and transparency.
Guide: Everything you need to know about the correct creation and management of supplier declarations
Areas of application of the supplier's declaration
Supplier declarations are used in various areas of purchasing and supply chain management. They are particularly relevant in industries that place high demands on quality, sustainability and compliance. Examples of this are
- Automotive industry: Ensuring compliance with quality standards and safety regulations through detailed proof of origin.
- Food industry: Proof of compliance with hygiene standards and sustainable production methods.
- Electronics industry: Ensuring compliance with environmental regulations and fair working conditions in production.
- Fashion industry: Ensuring ethical production conditions and sustainable materials.
Strategies for the effective use of supplier declarations:
- Integration into the supplier evaluation system: Include supplier declarations as part of the regular evaluation and audits of suppliers.
- Training and sensitization: Training of the purchasing department in dealing with supplier declarations and their importance.
- Technological support: Use of software solutions for the automated recording, management and analysis of supplier declarations.
- Transparent communication: Open communication with suppliers about the requirements and expectations for supplier declarations.
Success factors:
- Clearly defined requirements: Precise definition of the required information in the supplier declarations.
- Cooperation with suppliers: Building a partnership relationship with suppliers to ensure the quality and accuracy of supplier declarations.
- Continuous improvement: Regular review and optimization of the processes for creating and managing supplier declarations.
Supplier's declaration vs. other delivery documents
While the supplier declaration provides a comprehensive picture of a product's origin and production conditions, there are other documents that play a similar or complementary role in the supply chain. A comparison of the most important documents helps buyers to select the right tools for their specific requirements.
Supplier declaration:
- Benefits: Provides detailed information on origin, production conditions and compliance; supports sustainable and ethical sourcing practices.
- Disadvantages: Can be costly to create and manage; dependent on accuracy of supplier details.
Certificates (e.g. ISO, Fair Trade):
- Advantages: Recognized standards that are often accepted throughout the industry; facilitate compliance with legal requirements.
- Disadvantages: Can be costly to certify; may not offer the same level of detail as a supplier declaration.
COC (Certificate of Conformity):
- Advantages: Confirms compliance with specific technical requirements and standards; often required for import/export.
- Disadvantages: Focuses mainly on technical aspects and less on ethical or sustainability criteria.
Decision-making factors for buyers:
- Industry requirements: Certain industries have specific requirements for delivery documentation.
- Corporate objectives: The company's sustainability and compliance goals influence the choice of the appropriate document.
- Supplier structure: The number and variety of suppliers can influence the management and use of different documents.
Conclusion: Supplier declaration as a key component in modern purchasing
The supplier declaration is an indispensable tool for buyers who want to ensure transparency, quality and compliance in their supply chain. It provides comprehensive information on the origin and production conditions of the goods supplied and helps companies to promote ethical and sustainable procurement practices. Despite the potential challenges, such as the administrative burden and dependence on the accuracy of supplier information, the benefits clearly outweigh the risks. By integrating supplier declarations into supply chain management, buyers can minimize risk, ensure product quality and ensure regulatory compliance. With the right strategies and technologies, the supplier declaration becomes a valuable tool for sustainable and successful purchasing.
