Suppliers play a large role in AGCO’s success so it is imperative that we strive to partner with our key suppliers to ensure continued innovation and development of sustainable solutions to meet the 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 critical 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 our 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 seek improved 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 are not only compliant with local regulations, but also with our own, often-higher, expectations. AGCO strives to protect and manage our own labor pool and also work with suppliers that support the same standards in terms of ensuring a safe, legal, and healthy labor force. All suppliers are encouraged to agree to our Supplier Code of Conduct, and we train our internal employees on these important expectations. As part of our supplier quality programs, we also audit select suppliers to verify acceptance and knowledge to the principles.