Supplier Qualification

The initial screening process allows us to confirm that the supplier can meet the specifications for the component or service to be provided and is properly licensed to manufacture the component being considered for purchase, or for the service.

We use various tools and measures to select and evaluate our suppliers. These include on-site audits and defined qualification processes for new suppliers, which entail self-assessments on quality, environmental and social issues. We also perform risk assessments to check compliance with standards.

All companies wanting to become suppliers for Linde Engineering must be qualified and approved before the placement of a purchase order.

Suppliers of Direct Material and Logistics Service Providers (LSP)
Linde’s approval process is carried out for suppliers and logistics service providers:

• that are not yet approved
• whose previous approval is more than three years old and with whom no orders have been placed since then
• whose approval has been withdrawn and for whom a new evaluation of approval criteria fulfilment is desired
• whose product portfolio or manufacturing location has changed since the approval was granted (only the changes need to be examined)

Suppliers of Indirect Material:
Covers goods and services required by LE entities to perform their work activities but which are not directly related to the production of goods and services for the clients. Indirect materials are IT software and hardware, telecommunications, construction services at company facilities, tools and equipment necessary to perform work activities, research and development costs, employee canteen facilities and all other goods and services which are not part of a product or service delivered to clients.

A supplier can be approved at global, local or project-specific level.

A local supplier approval is to be selected if the products are to be used exclusively in local projects and are procured locally, and therefore not exported.

Further limitations on a project, a region or a business unit are optional.

The supplier qualification is valid for three years. In the cases of satisfactory order execution, installation and commissioning service, customer service or collaboration, the approval is extended for another three years.

There are no costs for the supplier qualification.

For direct project material, an audit is a standard part of the supplier qualification.

If an audit is required, the buyer responsible for your supplier qualification will contact your company to coordinate such appointment as well as the topics to be addressed during the audit.

Should there be findings, non-conformities or opportunities for improvement noted during the audit, Linde Engineering expects that suppliers implement corrective actions for the findings prior to final approval.