Supply Chain Performance
American Water is committed to environmental performance and responsible business practices in all its endeavors and applies this practice in every part of the water and wastewater utility supply chain. We have several practices to manage the ethical, social, and environmental impacts of our suppliers.
Strategic Sourcing and Supplier Guidelines
American Water has implemented a strategic sourcing process in working with any potential supplier. As part of this process, we assess what stakeholders will be affected, if minority suppliers exist for the product/service, and if the supplier meets other American Water requirements.
Human Rights Screening
We are committed to supporting human rights and we strive to create an environment of respect, integrity, and fairness for our employees and customers in all our business locations. We expect that all our business partners will operate in the same manner. We inquire within our RFP process whether our suppliers have a corporate responsibility policy or program and ask in particular whether they have received notice of any violations related to the environment, labor, health and safety, or other matters from any government or governmental agency in the past seven years. If the suppliers’ response includes any violations we further inquire as to the extent of the violation and make a decision as to whether we will proceed with that specific supplier. In 2010, no suppliers reported any violations related to human rights violations.
Purchasing Policies
American Water’s Procurement Policy provides a process for the procurement of products and services through the use of professional purchasing and contracting practices. The process aims for administrative efficiencies and effective management of the consolidated purchasing power of the company to provide products and services at the best value.
Supplier Diversity
American Water strives to identify and include diverse suppliers (women, minority, disabled veterans, and small business enterprises) from the communities we serve when soliciting bids for products and services. Our Supplier Diversity Policy guides each functional area of American Water to ensure that qualified diverse suppliers are given an equal opportunity.
Our Supply Chain employees belong to organizations and committees devoted to enhancing diverse supplier opportunities within the water industry. In addition, our Supply Chain team attends networking events designed to connect our needs with the products and services offered by diverse suppliers. Every bid solicitation involves a comprehensive search for qualified diverse suppliers to include, and if competitive, to award business. Expanding the diversity of our supplier pool to reflect the communities we serve allows American Water to better understand customers’ needs in these markets.
