Suppliers play a large role in AGCO’s success, making it critical to partner with our key suppliers to ensure continued innovation and development of sustainable solutions to meet marketplace needs. Selecting, managing and developing high quality suppliers helps AGCO continue to find the right solutions for the sustainability and efficiency improvements that we expect.
Strong relationships with suppliers are key to sourcing components for our products, controlling quality and helping to drive growth. Healthy partnerships and open communication also enable us to encourage our suppliers to share our values with respect to environmental stewardship and social responsibility. It is AGCO's aim to foster long-term profitability through high performance in quality, ethics and environmental standards among our suppliers.
AGCO works diligently with our supply base to reduce our shared impact to the environment. We strive to improve environmental performance by increasing efficiency during the production, transport and packaging of our diverse range of products. We encourage and recognize suppliers that provide consistent, high-quality products that reduce warranty claims and contribute to the reduction of overall supply chain waste.
As AGCO continues to expand globally, we are committed to labor conditions and human rights standards that not only comply with local regulations but also with our own, often-higher, expectations. AGCO strives to protect and manage our own labor pool and work with suppliers that support the same standards to ensure a safe, legal, and healthy labor force. All suppliers are encouraged to agree to our Supplier Code of Conduct, and AGCO trains employees on these important expectations. As part of our supplier quality programs, we also audit select suppliers to verify acceptance and knowledge of the principles.