Consumption of main (cellulose, collagen, abaca, polymers) and auxiliary raw materials (those used for chemical transformation, such as glycerine and caustic soda, among others) represents 37% of the Group's raw materials consolidated consumption expense (41% in 2018).

Aware of the strategic importance and the impact that an adequate supply of raw materials and services has on the entire organisation, as well as the optimal management of the supply chain, the Viscofan Group is committed to its suppliers and establishes relationships with them that are based on respect and trust, on the quality of products and services, and on the reciprocal opportunity for growth and learning    

This is a commitment that we understand must be mutual and that globally links to all employees of the organisation in the use of best practices in product purchase management and in any other service contracted.

Under this premise, Viscofan is analysing new actions to be carried out so that the management of the supply chain is developed in accordance with ethical standards and environmental criteria in line with the Group's Code of Conduct and the Sustainability Action Plan.  

Viscofan has established a supplier approval system that ensures non-discriminatory treatment in the selection processes of suppliers and contractors, while seeking to ensure their compliance with quality, safety and cost criteria. In addition to this commitment, Viscofan expects suppliers to be innovative and efficient, to meet the legal and functional requirements, as well as the ethical practices required. In this sense and in accordance with our Code of Conduct and with our Human Rights Policy, Viscofan rejects any type of child labour and, in accordance with this, our suppliers are asked to make a commitment similar to that included in our code of ethics.

In particular, our approval system for suppliers of raw materials and packaging includes a declaration of conformity on their performance commitments in accordance with internationally accepted ethical principles and human rights.

As of 2017, all the companies that make up the Viscofan Group began to request this commitment in the field of human rights and environmental criteria from new suppliers of raw materials, and it is expected that this commitment will be ratified by all of them in 2020.

Specifically, all suppliers of raw materials, packaging and maintenance must approve an internal approval procedure comprising an on-site auditing by the quality team of Viscofan, or the completion of a questionnaire. In both cases, among other matters, the following systems are assessed: quality management (ISO 9001, IFS), food safety management in the case of suppliers of raw materials (FSSC 22000, BRC Global Standard, BRC Packaging), occupational health and safety management (OHSAS 18001/ISO 45001), environmental management (ISO 14001) and human rights management (UN Global Compact, BSCI). In the specific instance of collagen, the acquisition of animal hide (mainly cows) is required. In Europe this must comply with the European regulations of welfare of animals at the time of slaughter.

In addition, the activity of Viscofan Group in the countries in which it operates is geared to value creation for all stakeholders, including suppliers. Thus, in 2019 the company allocated 448 million euros as a reflection of the distribution of value to suppliers of goods and services, with 56% of purchases of raw materials from local suppliers² (54% in 2018), which favours the economic development of the communities where Viscofan is present.

In addition, the payment period for the Viscofan Group during 2019 was 23days (2018: 28 days), which is lower than the maximum established by payment arrears regulations. Note 19 of the annual consolidated financial statements shows the information on the average supplier payment period during the year.