In order to give Valeo’s strategy a truly competitive edge, the role of its Purchasing Department is to reduce costs by sourcing from only the most competitive suppliers, to implement extremely rigorous selection processes for new suppliers, to apply the total quality and innovation approach to suppliers and subcontractors, and to establish close partnerships with the most innovative and best performing suppliers.
The virtuous circle of purchasing
Every day, we implement key processes that make up Valeo’s virtuous circle of purchasing:
Quality & Service
- Zero incidents
- 0 PPB (defective parts per billion)
- All initial samples must be good, right first time and on time
- 100% service level
- Zero logistics incidents
- Continuous reduction in the cost of materials and components
- At least one technical productivity suggestion per month and per supplier
- All design suppliers integrated right from the initial phase of our projects
- Development time kept strictly in line with project milestones
Our requirements concerning ethics, compliance and sustainable development
As reflected in Valeo Code of Ethics and Compliance program, Valeo’s standards in terms of ethics, integrity, business conduct and sustainable development are very high.
As to Valeo business partners, they are expected to adhere to Valeo values and to act in compliance with laws and regulations and with Valeo compliance policies at all times.
This is why, Valeo suppliers are contractually required
- to sign the Valeo Business Partner Code of Conduct and to distribute it with their companies to all employees potentially assigned to a project or mission for Valeo.
- to develop the awareness of their teams and specifically the awareness of employees effectively supporting Valeo, about anti competitive practices and risks of bribery.
To that effect, business partners have as a minimum :
- These tools have been specifically designed and made available by Valeo to help its third parties understand its expectations
Our Quality standards
From the initial assessment to continuous improvement, we select the best suppliers and make it our aim to progress together. Our automaker customers are constantly raising their quality criteria. Our aftermarket customers demand a faultless service. Valeo and its suppliers must therefore anticipate and respond to these requirements in order to meet the best standards in the world. The demands we place on our suppliers are at the heart of our virtuous circle of purchasing: maximum responsiveness, a positive attitude and mindset, and the rapid resolution of warranty issues. In order to choose the best suppliers and ensure they continue to improve, Valeo implements three measurement processes:
- The selection process, involving EVAL tools (supplier assessment questionnaire) and business allocation committees.
- The qualification system, using process audits and product approval systems.
- Monitoring of continuous improvement, using tools such as the performance assessment grid and the VPSP (Valeo Preferred Supplier Policy) questionnaire, which is used to categorize suppliers in our supplier base.
Responsible sourcing of minerals originating from conflict-affected areas
On August 22, 2012 the U.S. Securities and Exchange Commission ("SEC") adopted final rules to implement reporting and disclosure requirements related to "conflict minerals" as directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The rules require disclosure regarding whether certain products contain "conflict minerals" that are necessary to the "functionality or production" of those products.
The term “conflict minerals” refers to gold, as well as tin, tantalum, and tungsten ("3T&Gs), the derivatives of cassiterite, columbite-tantalite, and wolframite, regardless of where they are sourced, processed or sold. The intent of these requirements is to further the humanitarian goal of ending violent conflict in the Democratic Republic of the Congo (DRC) and surrounding countries, which has been partially financed by the exploitation and trade of “conflict minerals.”
To ensure compliance with these requirements, each manufacturer in the supply chain must request information regarding the use of “conflict minerals” from their direct suppliers, who, in turn, must solicit that information from the next tier of suppliers.
As a result, VALEO requests its supplier to undertake the following actions:
- to comply with the requirements of the Dodd-Frank Wall Street Reform and Protection Act of 2010 (additional information may be found on www.AIAG.org)
- fill In the CMRT template available on http://www.conflictfreesourcing.org/conflict-minerals-reporting-template or requested via simple e-mail to firstname.lastname@example.org and return it to Valeo-Conflict-Minerals dedicated mailbox email@example.com.