Supply Chain Management

Supply Chain Management

At HD Supply, our sourcing model combines centralized purchasing and selection of preferred suppliers with buying activity administered at the local level of our individual businesses. We strive to conduct business in a responsible manner, and we expect the same from our suppliers. To that end, HD Supply will only do business with suppliers, contractors, and consultants that comply with applicable and controlling laws, rules, and regulations.

Supplier Screening and Audits

We seek to associate with suppliers who share our values and commitment to upholding ethical principles. We contract with global testing and inspection companies to conduct social and environmental screenings of potential suppliers. Depending on the level of risk associated with a particular country or geographic region, our suppliers may be required to meet screening requirements for fraud, employment and pay practices, emergency planning, and environment, health and safety.

HD Supply also conducts periodic corporate social responsibility audits at our supplier locations to ensure compliance with applicable laws and HD Supply standards. Upon request, suppliers must also be willing to facilitate audits of sub-suppliers. Companies that provide HD Supply exclusive brands, or whose scope of work with us represents at least 50 percent of the supplier’s revenue, are subject to unannounced site assessments. Any supplier found not in compliance must take appropriate corrective actions and adopt appropriate measures to prevent recurrences. Failure to do so may result in termination.

We purchased from over
6,000
suppliers in 2017.

Ethics Guide for Suppliers, Contractors and Consultants

HD Supply expects all suppliers to comply with applicable laws and the standards of business conduct set forth in our Ethics Guide for Suppliers, Contractors, and Consultants. Furthermore, suppliers must ensure that their associates and sub-suppliers, and any other parties involved in the execution of HD Supply work, also comply with applicable laws and our Ethics Guide. The Ethics Guide provides requirements on a range of key management issues including environmental stewardship, health and safety, emergency planning, and anti-bribery.

Protecting Human Rights

HD Supply is committed to supporting a workplace environment that respects international human rights standards. We require suppliers to treat their associates with respect and dignity. Our Ethics Guide for Suppliers, Contractors, and Consultants includes strict guidelines on topics including forced labor, wage and work hours, age requirements and freedom of association. Violation of any applicable laws or regulations is explicitly prohibited and may result in immediate termination. For additional information, please see our Ethics Guide for Suppliers, Contractors, and Consultants.

Conflict Minerals

HD Supply supports ending violence and human rights violations associated with the mining of gold, as well as tin, tantalum, and tungsten (called 3TG) “conflict minerals” from the Democratic Republic of the Congo and surrounding countries.

We comply with the reporting obligations of section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 that aims to prevent the use of conflict minerals from benefiting armed groups in high-risk areas. HD Supply expects all vendors that are manufacturing our products to cooperate with HD Supply’s conflict minerals due diligence process. Upon request, suppliers must promptly provide certifications regarding the country of origin of all products supplied to HD Supply, as well as detailed conflict minerals information. Failure by suppliers to comply with the law and HD Supply’s requests for information may result in corrective action requests or termination.

Supply Chain Security

HD Supply takes supply chain security very seriously. Accordingly, as part of our Ethics Guide for Suppliers, Contractors and Consultants, all suppliers doing business with HD Supply must have a written security procedure plan in place – customized to their size, structure and security risks – that addresses factors such as personnel security, cybersecurity, and associated education and awareness. Additionally, HD Supply suppliers must have processes in place to keep unauthorized items from being introduced into shipments destined for HD Supply or its customers.