The supply chain for our global operations includes skilled labour, miscellaneous services and supply of raw, direct and indirect materials. For all our goods and services, we engage our suppliers through a commercial framework that is
aligned with Our BHP Billiton Charter values and our ethical practices.
To enable this, we manage our relationships through relevant contractual arrangements, applicable regulatory frameworks, Our Charter, our Code of Business Conduct and Our Requirements standards. Our Requirements for Supply (PDF 108 kb) standard provides the framework with a view to ensuring our suppliers comply with our HSEC and business conduct zero tolerance requirements.
We assess supply categories according to commercial dependency and supplier risk, on a tiered approach. Engagement with each supplier is determined by the risk level. If required, we work together to develop a plan to ensure the supplier meets Our Requirements standards throughout the relationship. Significant suppliers (tier one) represent approximately two per cent of our supply base.
We are currently in the process of designing and implementing a new category management platform that will increase our effectiveness in tracking supplier performance and ongoing supplier monitoring.