2007 Sustainability Report - Baxter Sustainability Report

Supply ChainMore online:sustainability.baxter.com/supply_chainAt Baxter, “supply chain” refers to the organization and activitiesthat plan and coordinate product inputs from tens of thousandsof suppliers worldwide to Baxter manufacturing operations,develop schedules to meet forecasted demand and then inventoryand distribute finished products to customers in more than100 countries. The company relies on this supply chain to securelydeliver the right products to the right places at the right time.left Renal Home Delivery SpecialistRobert Davis delivers peritoneal dialysissupplies to a home patient in Chicago,Illinois, United States.Baxter addresses a variety of sustainability issues throughout its supply chain, includingestablishing Baxter’s expectations for and ensuring ethical supplier conduct; maintaininga diverse supplier base; encouraging practices that enhance supplier environmentalperformance; optimizing logistics to minimize related environmental impacts (see page 25);and working to ensure patient safety and meeting customer and patient needs.Managing Supplier PerformanceApproximately 50,000 suppliers in more than 100 countries provide the goods, servicesand raw materials required for Baxter’s operations worldwide. In 2007, Baxter spentapproximately $4.1 billion on supplies.Supplier StandardsBaxter’s Supplier Quality Standard and Business Practice Standards for Suppliers providethe framework for supplier selection and management. These standards offer a consistentsupplier-evaluation approach and define policies and expectations for ethical behaviorwhen doing business with Baxter.The Supplier Quality Standard specifically addresses sustainability issues, includingindentured and child labor, employment standards, waste and energy reduction, and ethics.Baxter’s Business Practice Standards for Suppliers, available in six languages, also coverschild labor, as well as the management of confidential information, intellectual property, giftsand entertainment, anti-corruption, conflicts of interest, trade compliance, fair employmentopportunities, and environment, health and safety. Baxter expects suppliers to comply withboth sets of standards as well as all laws governing purchasing, and may terminate thecontracts of suppliers that do not. Baxter also asks key suppliers to provide emergencyresponse plans describing how they will continue to provide vital supplies in the event ofa catastrophe or business interruption.27 sustainability.baxter.com/supply_chain