20. marraskuuta 2025
Working with responsibility in Damstahl’s Supply Chain
The supply chain at Damstahl is long and complex. Although we wish we could be deeply involved in the daily production processes of all our suppliers, it’s simply not feasible. To uphold our standards, we require our suppliers to sign our Supplier Code of Conduct. However, we recognize that this alone isn’t enough to guarantee a high level of responsibility for the products we deliver to our customers. Therefore, regular supplier visits are essential, allowing us to witness the production processes firsthand.
We prioritize visiting our suppliers every 15-16 months. During the interim, our suppliers visit us, just as we maintain regular digital meetings to stay connected. In this article, we spoke with Jan Knaak, COO of Damstahl Germany, about his recent two-week visit to India in November 2024.
Purpose of supplier visits
As is typical for our supplier visits, this trip had three main purposes: visiting existing strategic suppliers, exploring potential new suppliers, and discussing our Supplier Code of Conduct.
”We were two colleagues on this trip, and during these visits, we always pay close attention to the factory’s processes and the quality of the materials. But before each visit, we also agree specific areas for each of us to focus on. For example, my colleague might closely monitor wastewater management, while I keep a sharp eye on labor conditions. This way, we ensure that we cover as much ground as possible”, Jan Knaak, COO of Damstahl Germany.
The importance of physical visits These physical visits are crucial to Damstahl because, from a distance, a supplier can promise the best labor conditions, perfect safety gear, and a strong focus on sustainability. This makes it essential to see the mills firsthand, understand the processes, and meet the people we collaborate with. Therefore, these visits make a valuable difference, Jan Knaak emphasizes.
During the latest visit, 12 different suppliers were visited. Most of these were existing suppliers, as our visits primarily focus on strategic long-term partners to follow their development and improvements. The remaining visits were to new suppliers with whom Damstahl is considering long-term partnerships.
The Supplier Code of Conduct and collaborative problem-solving
In Damstahl we use our Supplier Code of Conduct as an active tool in communication with suppliers, as it helps concretize discussions about working conditions, safety equipment, and sustainability:
“Before each meeting, I decide on the key indicators for each specific supplier and where we should focus our attention regarding our Supplier Code of Conduct. There have been several instances where our visits have led to the termination of supplier relationships. Typically, if we identify something that doesn’t meet our expectations, we provide the supplier with a specific timeframe to address the issue. If the issue is very severe, we terminate the relationship immediately,” says Jan Knaak.
However, in most cases, terminating the collaboration is not the best solution. For example, if workers are using unsafe equipment, the obvious action might seem to end the cooperation. This does not drive positive changes or solve the problem though. The supplier will likely just sell their products to another customer. According to the Damstahl COO, the primary task is to solve the problem in collaboration with the supplier:
”When we visit suppliers, we bring our European perspective, which may not align with local practices. So, we can’t just show up with a Supplier Code of Conduct in hand and say that in the EU we care a lot about working conditions, CO₂ footprint, and sustainability. It doesn’t necessarily resonate with them. Therefore, it is important to communicate that improving working conditions is not just about European ideals but also about business growth. If suppliers understand that our Supplier Code of Conduct is tied to their business growth and success, they are more likely to make changes,” Jan Knaak explains.
Balancing cultural differences
The same principle applies when you buy imported fruits like avocados or mangoes in the supermarket as a private customer, Jan Knaak emphasizes:
“These exporting countries have different traditions, and we cannot impose our culture entirely. We need to strike a balance, ensuring that the most important conditions are met while working with suppliers who show a willingness to develop and move in a better direction.”
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