General Standard Disclosures: Organizational Profile
Each year, IPG spends over $2 billion on products and services from more than 75,000 suppliers around the world.
The Global Sourcing & Procurement (GS&P) function at IPG leverages the collective buying power of all of our agencies across the world and applies a disciplined approach to sourcing and procurement in the categories where we have significant spend, including pass thru spend.
GS&P follows a standard strategic sourcing process. Included in the process is a due diligence phase during which we assess a number of key criteria, including the financial strength, capabilities, capacity, quality of products and services, commitment to diversity and sustainability, and the total cost of ownership associated with suppliers we do business with. Read more about this in our Supplier Code of Conduct which can be accessed at the following link: http://www.interpublic.com/about/corporate-governancehttp://www.interpublic.com/about/corporate-governance.
Supplier diversity and sustainability are a key component of our strategic sourcing process and our current and potential clients are highly interested in our approach. We are firmly committed to providing an inclusive environment for minority- and women-owned businesses.
On an ongoing basis, we conduct business review meetings with our key suppliers during which we discuss the feedback we have received from our business units regarding the supplier’s performance. In conjunction with supplier reviews, we continually assess the competitive landscape within each of our key supplier verticals. Based upon the feedback received from the business units and the competitive landscape, RFP timelines are established to ensure IPG agencies and clients are receiving best-in-class service and pricing.
IPG understands that suppliers are independent entities, but the business practices and actions of a supplier may significantly impact and/or reflect upon us, our reputation and our brands, which are among most important assets. Because of this, and because we are committed to operating sustainably, IPG expects all suppliers and their employees, agents and subcontractors (their representatives) to adhere to the IPG Code of Conduct http://www.interpublic.com/about/corporate-governance while they are conducting business with and/or on behalf of IPG.