ISO 45001:2018 Clause 8.1.4 Procurement

ISO 45001:2018 11 Minutes

8.1.4.1 General

The organization shall establish, implement and maintain a process(es) to control the procurement of products and services in order to ensure their conformity to its OH&S management system.

As per Annex A (Guidance on the use of ISO 45001:2018 standard) of ISO 45001:2018 standard it further explains

The procurement process(es) should be used to determine, assess and eliminate hazards, and to reduce OH&S risks associated with, for example, products, hazardous materials or substances, raw materials, equipment, or services before their introduction into the workplace. The organization’s procurement process(es) should address requirements including, for example, supplies, equipment, raw materials, and other goods and related services purchased by the organization to conform to the organization’s OH&S management system. The process should also address any needs for consultation (see 5.4) and communication (see 7.4). The organization should verify that equipment, installations and materials are safe for use by workers by ensuring:
a) equipment is delivered according to specification and is tested to ensure it works as intended;
b) installations are commissioned to ensure they function as designed;
c) materials are delivered according to their specifications;
d) any usage requirements, precautions or other protective measures are communicated and made available.

Controlling the procurement of products and services to ensure their conformity to an Occupational Health and Safety (OH&S) management system is crucial for the safety and well-being of employees and the organization as a whole. Here are steps and strategies to achieve this:

  1. Clearly define your organization’s OH&S requirements for products and services. This includes identifying specific safety and health standards, regulations, and criteria that suppliers must meet.
  2. Implement a robust supplier evaluation process. Assess potential suppliers not only for cost and quality but also for their commitment to OH&S compliance.
  3. Establish criteria for supplier selection that prioritize safety and health considerations.
  4. Conduct regular supplier audits and assessments to ensure that suppliers are meeting your OH&S requirements.
  5. Develop checklists or questionnaires to evaluate suppliers’ OH&S performance.
  6. Provide training and guidance to suppliers about your organization’s OH&S management system, policies, and expectations.
  7. Foster awareness among suppliers regarding their role in maintaining a safe and healthy workplace.
  8. Clearly define OH&S requirements in procurement contracts and agreements. This should include compliance with relevant laws, regulations, and standards.
  9. Specify consequences for non-compliance and outline a plan for corrective actions.
  10. Establish Key Performance Indicators (KPIs) to monitor supplier performance in relation to OH&S.
  11. Regularly review supplier performance against these metrics.
  12. Conduct risk assessments related to procured products and services. Identify potential OH&S risks associated with suppliers and their offerings.
  13. Develop risk mitigation plans and contingency measures.
  14. Foster open communication channels with suppliers. Encourage them to report any OH&S incidents, concerns, or improvement opportunities.
  15. Collaborate with suppliers on OH&S improvement initiatives.
  16. Maintain thorough documentation of all procurement activities related to OH&S. This includes contracts, audits, assessments, and performance records.
  17. Continuously evaluate and improve your procurement processes and practices related to OH&S.
  18. Use lessons learned from incidents or non-conformities to refine your approach.
  19. Ensure that all procurement activities comply with relevant OH&S laws, regulations, and industry standards.
  20. Stay updated on changes in OH&S regulations that may impact your procurement processes.
  21. Consider working with suppliers who have third-party certifications or accreditations related to OH&S, as these can provide additional assurance of compliance.
  22. Conduct regular internal audits of your procurement processes to identify areas of improvement and ensure that your organization is adhering to its OH&S management system.

By implementing these steps and strategies, your organization can exercise control over the procurement of products and services to ensure their conformity to its OH&S management system, thereby promoting a safer and healthier work environment. Regular monitoring, evaluation, and communication with suppliers are key to maintaining compliance and driving continuous improvement in OH&S practices within the supply chain.

Here are some key points on how the procurement process can contribute to occupational health and safety:

  1. Hazard Identification: During the procurement process, organizations should identify potential hazards associated with the products, materials, equipment, or services they plan to acquire. This involves assessing the inherent risks and understanding how these items may impact the health and safety of employees and others in the workplace.
  2. Risk Assessment: After identifying hazards, a risk assessment should be conducted to evaluate the severity of potential harm and the likelihood of exposure. This assessment helps prioritize risks and decide on appropriate control measures.
  3. Supplier Evaluation: Organizations should evaluate potential suppliers not only based on cost and quality but also on their commitment to safety. Suppliers with strong safety records and practices should be preferred, as they can help reduce OH&S risks.
  4. Specification and Selection: Clearly defining safety specifications and requirements in procurement documents is essential. This ensures that the products, materials, or services selected meet safety standards and comply with relevant regulations.
  5. Control Measures: Procurement can be used to specify control measures that suppliers must implement to mitigate risks. For example, suppliers of hazardous materials may need to provide safety data sheets and proper labeling.
  6. Continuous Monitoring: The procurement process doesn’t end with supplier selection. Ongoing monitoring and audits of suppliers’ safety performance should be part of the process to ensure compliance with safety requirements.
  7. Training and Information: Employees should be informed about the potential hazards associated with newly acquired items or services. Training programs can help them understand how to use these resources safely.
  8. Documentation: Proper documentation of the procurement process, including hazard assessments, risk assessments, and supplier safety agreements, is essential for compliance and accountability.

By integrating occupational health and safety considerations into the procurement process, organizations can proactively reduce risks, protect the well-being of employees, and ensure compliance with relevant regulations and standards. This holistic approach to procurement contributes to a safer and healthier workplace.

Evaluation of supplier related to OH & S

Evaluating suppliers related to Occupational Health and Safety (OH&S) involves assessing their performance and commitment to workplace safety to ensure that they align with your organization’s OH&S goals and requirements. Here’s a step-by-step guide on how to evaluate suppliers in this context:

  • Before you can evaluate suppliers, you need to define the OH&S criteria and requirements that are important for your organization. These criteria may include compliance with safety regulations, safety performance records, commitment to continuous improvement in OH&S, and other specific factors relevant to your industry or organization.
  • Create a list of suppliers who provide goods, services, or materials that have a direct or indirect impact on occupational health and safety within your organization.
  • Conduct a preliminary assessment of potential suppliers by reviewing publicly available information, such as their websites, safety certifications, and past safety records.
  • Develop a questionnaire that asks suppliers about their OH&S practices, policies, and performance. Request information on their safety programs, incident history, safety training, and safety equipment.
  • Request relevant documentation from suppliers, such as safety policies, incident reports, safety training records, safety data sheets (SDS) for hazardous materials, and any certifications related to OH&S.
  • If necessary, schedule on-site audits or inspections of the supplier’s facilities. This step may be especially important for suppliers of critical safety equipment or hazardous materials.
  • Conduct a risk assessment to identify potential OH&S risks associated with each supplier’s products or services. Assess the severity and likelihood of these risks.
  • Evaluate the supplier responses to the questionnaire, the documentation provided, and the findings from on-site audits or inspections.
  • Ensure that suppliers comply with relevant OH&S laws and regulations. This includes compliance with safety standards, reporting requirements, and any industry-specific regulations.
  • Review the supplier’s history of OH&S incidents and accidents related to their products or services. Assess their response and corrective actions in each case.
  • Evaluate the supplier’s training programs and the competency of their employees in matters of OH&S.
  • Assess the quality and availability of safety equipment and personal protective equipment (PPE) provided by the supplier.
  • Verify that the supplier provides accurate hazard communication for their products, materials, or services. Ensure that safety data sheets (SDS) are provided for hazardous materials.
  • Use key performance indicators (KPIs) to measure the supplier’s OH&S performance over time, such as the number of incidents, accident rates, and compliance with corrective actions.
  • Based on the evaluation criteria and findings, provide an overall assessment of the supplier’s OH&S performance. Assess whether their performance is satisfactory, needs improvement, or is unsatisfactory.
  • Provide recommendations for improvement and specify any corrective actions that the supplier needs to take to address deficiencies.
  • Schedule follow-up assessments or audits to ensure that the supplier is implementing corrective actions and improving their OH&S performance.
  • Work with the supplier to develop a performance improvement plan if needed.
  • Maintain records of all supplier evaluations, assessments, audits, and corrective actions.
  • Periodically review and update your supplier evaluation process to ensure its effectiveness in enhancing OH&S performance.

Documented Information required

Documents:

  1. Procurement Policy: A documented policy that outlines the organization’s commitment to considering OH&S risks and opportunities in the procurement process.
  2. Procurement Procedures: Documented procedures that describe how the organization plans, conducts, and evaluates procurement activities while considering OH&S criteria.
  3. OH&S Criteria for Procurement: Documentation specifying the OH&S criteria, standards, and requirements that must be met by suppliers and contractors. This may include safety standards, compliance with regulations, and specific OH&S performance expectations.
  4. Supplier Evaluation Criteria: Criteria used to evaluate and select suppliers based on their OH&S performance and commitment to safety.
  5. Supplier Audits: Documentation related to audits conducted on suppliers to assess their compliance with OH&S requirements and standards.
  6. Contractual Agreements: Copies of contracts, purchase orders, or agreements with suppliers that specify OH&S requirements, responsibilities, and expectations.
  7. Safety Data Sheets (SDS): SDS for hazardous materials or substances procured by the organization. These sheets should be readily available and accessible for reference.

Records:

  1. Supplier Assessment Records: Records of supplier assessments, including the evaluation of their OH&S performance, compliance with safety standards, and other relevant criteria.
  2. Supplier Audit Reports: Reports from supplier audits, including findings, corrective actions taken, and follow-up actions to ensure compliance with OH&S requirements.
  3. Contract Records: Records of contracts, purchase orders, or agreements with suppliers that include OH&S clauses and obligations.
  4. Communication Records: Records of communication with suppliers regarding OH&S requirements and expectations.
  5. Records of Non-Conformities: Records of any non-conformities identified during the procurement process and actions taken to address them.
  6. Training Records: If training is provided to suppliers or procurement personnel regarding OH&S requirements, records of the training sessions and attendees should be maintained.
  7. Documentation of OH&S Criteria Compliance: Documentation demonstrating that procured products, materials, or services meet the specified OH&S criteria and standards.
  8. Records of Hazard and Risk Assessments: Documentation of hazard and risk assessments related to procured items or services.

Example of procedure for procurement related to OH&S management system

Objective: To ensure that all procurement activities related to Occupational Health and Safety (OH&S) align with organizational OH&S goals and legal obligations.

Scope: This procedure applies to all procurement activities within the organization where OH&S considerations are relevant.

Procedure:

  1. Identification of OH&S Needs:
    • The department or individual requiring goods, services, or materials related to OH&S identifies the specific OH&S needs and requirements.
    • The OH&S requirements may include, but are not limited to, personal protective equipment (PPE), safety training, safety equipment, hazardous materials, and safety signage.
  2. OH&S Criteria Development:
    • The requester, in consultation with the OH&S team or responsible personnel, defines the OH&S criteria and requirements that must be met by potential suppliers.
    • OH&S criteria may include compliance with relevant safety standards, regulatory requirements, and adherence to organizational OH&S policies.
  3. Supplier Selection:
    • The procurement department, in collaboration with the OH&S team, develops a list of potential suppliers based on the OH&S criteria and requirements.
    • Suppliers’ OH&S performance, safety records, and commitment to workplace safety are considered during supplier selection.
  4. Bid Evaluation:
    • Suppliers are invited to submit bids or proposals that include details on how they will meet the OH&S criteria and requirements.
    • Bids are evaluated not only based on cost but also on OH&S considerations.
  5. Contract Development:
    • Contracts or purchase agreements with selected suppliers are developed to include OH&S clauses, responsibilities, and expectations.
    • OH&S-related deliverables, timelines, and reporting requirements are clearly defined in the contract.
  6. Risk Assessment:
    • A risk assessment is conducted to identify potential OH&S risks associated with the procurement activity.
    • Strategies to mitigate these risks are developed and documented.
  7. Communication with Suppliers:
    • Clear communication channels are established with selected suppliers regarding OH&S requirements and expectations.
    • Suppliers are made aware of their responsibilities in maintaining workplace safety.
  8. Supplier Audits and Inspections:
    • A process for conducting OH&S audits and inspections of suppliers, especially those dealing with hazardous materials or critical safety equipment, is implemented.
    • The frequency and criteria for audits are defined.
  9. Performance Monitoring:
    • Metrics and key performance indicators (KPIs) are established to monitor suppliers’ ongoing OH&S performance.
    • Regular reporting and review of supplier performance are implemented.
  10. Documentation and Records:
    • All relevant documentation and records, including supplier evaluations, audit reports, communication records, and compliance documentation, are maintained and organized.
  11. Non-Conformance Handling:
    • Procedures for addressing and resolving non-conformities related to OH&S during procurement are defined.
    • Corrective actions are taken as necessary.
  12. Training and Awareness:
    • Procurement personnel are trained on OH&S requirements and considerations in the procurement process.
  13. Continuous Improvement:
    • The procedure is periodically reviewed for its effectiveness in ensuring OH&S compliance and alignment with organizational goals.
    • Necessary adjustments are made to improve the OH&S procurement process.
  14. Review and Approval:
    • A process for the review and approval of procurement decisions, particularly those related to OH&S, is established.
  15. Documentation Retention:
    • Guidelines for the retention and archiving of procurement records and OH&S documentation are outlined.

Example of Supplier Assessment Record

Supplier Information:

  • Supplier Name: [Supplier’s Company Name]
  • Supplier Contact: [Name of Supplier Contact Person]
  • Supplier Address: [Supplier’s Address]
  • Supplier Contact Email: [Supplier’s Contact Email]
  • Supplier Contact Phone: [Supplier’s Contact Phone Number]
  • Supplier Registration Number (if applicable): [Supplier’s Registration Number]

Assessment Details:

  • Assessment Date: [Date of Supplier Assessment]
  • Assessment Conducted by: [Name of Assessor]
  • Assessment Type: [Initial Assessment / Periodic Assessment / Re-assessment]

OH&S Performance Evaluation:

  1. Compliance with OH&S Regulations:
    • Supplier demonstrates compliance with applicable OH&S laws and regulations.
    • Supplier provides relevant certifications or documentation of compliance.
  2. Safety Policies and Procedures:
    • Supplier has documented OH&S policies and procedures in place.
    • Policies and procedures are communicated to employees and are accessible.
  3. Incident Reporting and Investigation:
    • Supplier has a process for reporting and investigating OH&S incidents.
    • Records of incidents and investigations are maintained.
  4. Training and Competency:
    • Supplier provides OH&S training to its employees.
    • Evidence of training records and employee competency.
  5. Safety Equipment and PPE:
    • Supplier provides and maintains necessary safety equipment and personal protective equipment (PPE).
    • PPE is in good condition and meets safety standards.
  6. Hazard Communication:
    • Supplier provides accurate hazard communication related to products, materials, or services.
    • Safety data sheets (SDS) are provided for hazardous materials.

Performance Metrics:

  • Key Performance Indicators (KPIs):
    • Number of OH&S incidents or accidents involving supplier’s products/services.
    • Timeliness of incident reporting and resolution.
    • Compliance rate with OH&S requirements.

Audit and Inspection Findings (if applicable):

  • Summary of recent OH&S audits or inspections conducted on the supplier.
  • Identified non-conformities and corrective actions taken.

Performance Improvement Plan (if needed):

  • If there are areas of non-compliance or performance concerns, outline a plan for improvement.

Overall Assessment:

  • Supplier’s OH&S performance is satisfactory.
  • Supplier’s OH&S performance needs improvement.
  • Supplier’s OH&S performance is unsatisfactory.

Recommendations and Actions:

  • List any recommendations for improvement.
  • Specify any corrective actions required from the supplier.

Follow-up Actions:

  • Schedule follow-up assessments or audits as needed.
  • Monitor supplier’s progress in implementing corrective actions.

Assessment Report Prepared by:

  • Name: [Name of Assessor]
  • Title: [Assessor’s Job Title]
  • Date: [Date of Assessment Report Preparation]

Approval:

  • Signature of Approving Authority: [Signature]
  • Date of Approval: [Date]

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Pretesh Biswas has wealth of qualifications and experience in providing results-oriented solutions for your system development, training or auditing needs. He has helped dozens of organizations in implementing effective management systems to a number of standards. He provide a unique blend of specialized knowledge, experience, tools and interactive skills to help you develop systems that not only get certified, but also contribute to the bottom line. He has taught literally hundreds of students over the past 5 years. He has experience in training at hundreds of organizations in several industry sectors. His training is unique in that which can be customized as to your management system and activities and deliver them at your facility. This greatly accelerates the learning curve and application of the knowledge acquired. He is now ex-Certification body lead auditor now working as consultancy auditor. He has performed hundreds of audits in several industry sectors. As consultancy auditor, he not just report findings, but provide value-added service in recommending appropriate solutions. Experience Consultancy: He has helped over 100 clients in a wide variety of industries achieve ISO 9001,14001,27001,20000, OHSAS 18001 and TS 16949 certification. Industries include automotive, metal stamping and screw machine, fabrication, machining, assembly, Forging electrostatic and chrome plating, heat-treating, coatings, glass, plastic and rubber products, electrical and electronic equipment, assemblies & components, batteries, computer hardware and software, printing, placement and Security help, warehousing and distribution, repair facilities, consumer credit counseling agencies, banks, call centers, etc. Training: He has delivered public and on-site quality management training to over 1000 students. Courses include ISO/TS -RAB approved Lead Auditor, Internal Auditing, Implementation, Documentation, as well as customized ISO/TS courses, PPAP, FMEA, APQP and Control Plans. Auditing: He has conducted over 100 third party registration and surveillance audits and dozens of gap, internal and pre-assessment audits to ISO/QS/TS Standards, in the manufacturing and service sectors. Other services: He has provided business planning, restructuring, asset management, systems and process streamlining services to a variety of manufacturing and service clients such as printing, plastics, automotive, transportation and custom brokerage, warehousing and distribution, electrical and electronics, trading, equipment leasing, etc. Education & professional certification: Pretesh Biswas has held IRCA certified Lead Auditor for ISO 9001,14001 and 27001. He holds a Bachelor of Engineering degree in Mechanical Engineering and is a MBA in Systems and Marketing. Prior to becoming a business consultant 6 years ago, he has worked in several portfolios such as Marketing, operations, production, Quality and customer care. He is also certified in Six Sigma Black belt .

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