Our sourcing and contracting process
As Nordea operates in an international environment our corporate language is English. This is the language we use in our communication with suppliers in the sourcing process. All formal documents must be in English. We use a multi‐dimensional selection process to choose the suppliers which most effectively fulfil our requirements.
e-Sourcing and e-Auction
E-sourcing and e-auction is a process of obtaining bids from different suppliers via a single online portal. Nordea will invite potential suppliers separately and provide them more details and training on how to participate,
Nordea uses an e‐Sourcing platform to collect information and proposals from potential suppliers. It allows our sourcing managers easy access to:
- the newest templates and information and in turn ensures process compliance,
- consistent and professional treatment of all potential suppliers
- a transparent and recognizable interface.
Additionally, Nordea might use e‐Auction as supporting tool in the sourcing process.
Nordea has a mandatory Consultant Procurement Process for the procurement of consulting services. The request, search, negotiation and contracting of consultants are handled through this process by the Consulting Services team.
This process ensures that the need for consulting services is fulfilled at competitive prices, terms and conditions, through:
- A clear preferred supplier strategy (suppliers appointed every second year through an RFP process headed by Consulting Services
- Framework agreements with standardized terms and conditions
- Reporting and follow‐up of the consulting services volumes and prices
The preferred suppliers are free to discuss potential assignments with relevant stakeholders, but Consulting Services must be involved in commercial discussions to ensure that Nordea’s Sourcing Policy is followed. The Consulting Services team manages the contact between the supplier account manager and Nordea and ensures that follow‐up and governance is performed in a formalized way.
As part of the supplier selection process we conduct due diligence activities, such as supplier screening and Third Party Risk Management (TPRM) to identify and assess the potential risks to our business operations. As part of our due diligence we review the supplier’s financial health, reputation, compliance with applicable laws and regulations as well as scope and effectiveness of the supplier’s operations and related controls.
Additionally, we require all our suppliers to operate in accordance with our sustainability principle as specified in our Supplier Code of Conduct.
All Nordea Suppliers must sign an NDA before entering the supplier selection process. The NDA secures the rights of Nordea and suppliers in terms of disclosure of classified information about both parties. It is considered mandatory and non‐negotiable by Nordea.
Nordea applies a standard contract template when engaging with suppliers. Suppliers’ willingness to comply with the terms and conditions included in the Nordea’s standard agreement is one of the criteria for choosing our suppliers.