Supply Chain

Supplier Diversity is a key strategic initiative at HARMAN and our partners - developing and maintaining a qualified diverse supply base that is reflective of our customer base is critical. The HARMAN procurement teams continue to work with cross-functional teams like Corporate Social Responsibility, Diversity & Inclusion and Learning & Development to develop a supplier diversity policy, track spend with minority businesses and implement best-in-class processes for long-term growth.

In partnership with our OEMS, we set specific diversity sourcing goals and commitments to the communities in which we do business. HARMAN is committed to provide minority enterprises with opportunities and the information they need to do business with us. We actively look for opportunities through the National Minority Suppliers Development Council(NMSDC), we attend numerous industry and OEM matchmaker events, and include the criteria in the supplier selection criteria. HARMAN has a Supplier Diversity champion that tracks opportunities vs. awards, and maintains accurate spend reporting.

We give preference to diverse suppliers that share our core values, defined as privately held companies that are 51 percent owned and operated by a woman, minority, veteran or person with a disability.

When selecting materials and suppliers for our products, HARMAN is committed to increasing transparency to identify the sources of conflict minerals as accurately as possible and working toward avoiding the use of conflict minerals that directly or indirectly finance conflict in the Democratic Republic of the Congo (DRC). As HARMAN does not source directly from smelters or mines, we are surveying our global supply chain to identify measures being taken by our suppliers to track the source of minerals used in products manufactured at their facilities. It is our expectation that our suppliers will adopt policies and procedures with respect to conflict minerals that will enable us to reasonably assure products supplied to HARMAN are conflict-free (i.e., do not directly or indirectly finance conflict in the DRC). HARMAN will continue to evaluate our policies and collaborate with other companies and trade organizations to share information and approaches that aid with rule compliance, while applying the Organization of Economic Cooperation and Development (OECD) due diligence process as part of our compliance effort.

For more information, visit our Conflict Minerals Policy Statement.

HARMAN strives to build strong working relationships with companies that not only deliver the highest quality goods and services, but also share our steadfast belief in doing what’s right without compromise. HARMAN operations rely on strategic global partners for materials that will meet the needs of our product specifications while remaining sensitive to the larger impact of their manufacturing and business processes on the world around us.

To ensure that the entire HARMAN Supply Chain operates in a manner consistent with the company’s objectives, all suppliers are required to act in accordance with HARMAN’s Supplier Code of Conduct for better supply chain management.

This Code applies to all suppliers and their sub-suppliers of goods or services to HARMAN and its affiliates. It is considered an integral part of our business relationships, and it is our mandate that all suppliers meet the standards of conduct expressed in this Code without exception. HARMAN suppliers operate under Master Service Agreements and/or Purchase Orders; by agreeing to the terms set forth therein, the Supplier agrees to comply with the Supplier Code of Conduct. HARMAN conducts spontaneous audits of our suppliers to ensure continuous compliance with these standards. Any supplier who fails to comply with the Code risks corrective action, which can include termination of the contractor agreements.

Executive oversight for the strategic implementation of the Supplier Code is provided by Procurement. Our corporate discipline translates into clearly defined policies regarding audits, certification, internal accountability, training, transparency and the responsible sourcing of minerals that go into our products. Full details of these polices can be found on our Supply Chain Policies page.

Additional information regarding purchasing and supplier relationships are available on our Supplier Terms and Conditions page.

HARMAN expects the highest standards of health and safety, labor rights and management of environmental impacts from our suppliers:

• Each supplier must comply with the applicable legal requirements and standards under the laws of each country in which the supplier operates.
• We expect suppliers to apply these minimum standards to their subcontractors and sub-suppliers.

At HARMAN we fully realize that for our organization to achieve its customer quality commitment, we must be able to rely on our supply base to deliver defect-free products. We firmly believe that our success in the automotive space is heavily contingent on our suppliers’ ability to meet and, in most cases, exceed quality expectations. HARMAN expects a zero-error philosophy from suppliers, along with excellent performance regarding delivery, cost competitiveness, technological support, best-in-class problem solving process and cooperation/communication.

Quality policy

Achieve excellence through commitment and innovation by surpassing expectations of our clients.

• Create value for all stakeholders through innovation and operational excellence.
• Consistently meet or exceed expectations of clients in timely delivery, product and service quality through industrialized process.
• Create a motivated team of competent people by providing continuous learning and a creative atmosphere.
• Continually improve our processes and systems that are aligned to stakeholders’ expectations and applicable regulatory requirements.

Our Supplier Quality Manual (SQM) describes expectations placed by HARMAN on suppliers regarding quality and delivery performance, as well as the formalities and processes which must be followed in partnership with HARMAN. Quality and environment-relevant processes from concept phase to series production or series delivery of supplied parts are detailed within. Notably, a supplier shall establish, document, implement and maintain a management system in accordance with HARMAN requirements and applicable international quality, environmental and safety standards.

HARMAN’s supplier evaluations are used to identify and report good and bad supplier performances and to make opportunities for improvements visible and transparent. The results of these evaluations are reported internally at HARMAN and to the supplier. We consider our audit results in the sourcing process and awarding of new business. At the supplier level, it is expected that measures will be defined that lead to continuous improvements of these evaluation results.

HARMAN employs several audit tools to ensure suppliers meet appropriate quality levels. These tools are used at various stages throughout the supplier development process, as well as in case of any problems during mass production. Audits may be conducted by external auditors or by HARMAN employees. Audit types include supplier assessments (for new suppliers, existing suppliers with plans for site transfer or new technology, or re-qualifications), mass production approvals, and process walks of specific manufacturing lines.