Purchasing
RBC Financial Group has a positive economic impact on the
communities and countries in which we do business, through
the jobs we create and provide, the taxes we pay, and our
purchase of goods and services.
In 2007, RBC spent $4.4 billion on goods and services from
international, national, regional, and local suppliers of
all sizes.
RBC promotes fair purchasing practices and strives to support,
wherever possible, the communities in which we operate. We
are a founding member of the Canadian Aboriginal and Minority
Supplier Council. RBC has been a member of the Council's U.S.
affiliate, the National Minority Supplier Development Council,
since 2002.
Policies
Our Procurement Group is responsible for sourcing significant
products and services. Our procurement policies are inclusive
and aim to promote sustainable business practices and economicdevelopment
where possible and appropriate. Social and environmental policies
and practices are among the criteria ranked and considered
when awarding contracts through our Requests for Proposal
(RFP) process. To maintain the highest standards, we review
our purchasing guidelines annually.
As appropriate to a specific RFP, RBC's Procurement Group
may ask prospective vendors to detail extensive corporate
and financial information, including the declaration of conflicts,
lawsuits or administrative complaints and charges, industry
experience, and references. After the business has been awarded,
our standard legally-prepared "Supplier Agreement"
includes comprehensive, explicit clauses covering warranties,
indemnities, confidentiality and disclaimers.
When a potential vendor approaches RBC they are required
to supply us with information about their social and environmental
policies and practices. The results of all inquiries are ranked
and weighted, and then considered when Strategic Sourcing
selects the vendor and/or products. The Request for Proposal
covers a potential supplier's:
- Labor standards/employment practices
- Occupational health & safety record
- Internal environmental policies and practices
- Human rights performance and record (ILO conventions)
- External audits/assurance (e.g. AA1000)
- Ability to provide information security/physical security
- Ability to provide accessibility for people with disabilities
(for information technology suppliers re: applications,
software etc.)
- manufacturing process, disposal, packaging, product use
and maintenance of the product.
We apply the principles of our Code of Conduct to suppliers.
RBC promotes fair purchasing practices and strives to support
the communities in which we operate. RBC does not link our
client relationships to our vendor relationships, recognizing
that open competition based on value must be the basis for
all successful relationships.
Efficiency and Fairness
We've introduced electronic invoicing to make business transactions
more efficient and ensure small- and medium-sized business
owners can compete alongside national or larger suppliers.
We provide companies with the opportunity to introduce themselves
via our website, to increase their visibility and chance of
being invited to compete for a purchasing relationship. See
Become a Vendor.
We also use an e-procurement program to manage the purchase
of certain goods and services in Canada and plans are under
way to implement this technology across most of the North
American companies of RBC Financial Group. Buying goods and
services electronically lowers the cost of processing transactions,
and allows for better contract compliance and speedier cash
flow to our suppliers.
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