Supply Management Mission

Role

1. Validate, develop and manage the supplier base, relationships and negotiations
2. Ensure supplier agreements, including price lists
3. Ensure that objectives and targets on Quality, Delivery Reliability Lead Time and Cost are met
4. Supplier capacity management
5. Driving, sustaining and coordinating the Operational Excellence activities in the supplier base
6. Secure supplier qualification and part validation (e.g. Wärtsilä Parts Approval Process, etc.)
7. Supplier development and production improvement (e.g. Supplier audit, Wärtsilä Production Improvement Process, Value Analysis/Value Engineering, etc.)
8. Supplier compliance & risk management
9. Digitalization of the supply chain

 

To secure coordinated interfaces and synergies for the cross-divisional supplier base, Wärtsilä has a category management structure in place.

The main direct material products and components are divided into 19 different categories, based on cross-functional category teams. The direct material categories are divided under Wärtsilä Businesses based on the major volume distribution of the materials and components of each category. The categories are managed by a category team, headed by a Category Manager with his / her Strategic Purchasers and Supplier Development Engineers. The teams are cross-functionally linked to stakeholders from research & development, technology, product engineering as well as relevant representatives of the different businesses.

The Indirect Purchasing activities are divided into 10 categories. Indirect Purchasing belongs to the Finance & Control organization and is managing the strategic sourcing activities for indirect materials and services in all businesses and support functions.

A Central Supply Management team is responsible for supply management processes, tools, reporting and expertise within supplier development for the whole Wärtsilä.

A Supply Management Steering Committee with representative from Energy Business, Marine Business and Indirect Purchasing is accountable for supervising the way of working and have the needed cross-divisions governance.

One of the key elements in the competitive advantages of Wärtsilä in the market is a highly committed supplier network created around our products and services. The success of Wärtsilä also leads to the success of our suppliers; consequently – a mutual benefit and opportunity. To make this relation a common success we need to share the same vision and have common targets. Our key focus areas are high Quality standards, on time Delivery and competitive Cost levels; in that order. Not forgetting the importance of short Lead Times.

The expectation we have on ourselves and our supplier network is that we together continuously work on improving our performance and processes towards operational excellence. This requires that we constantly measure our performance and the effectiveness of our processes, and that we benchmark ourselves with best practice.

We strongly believe that our suppliers should be closely and early involved in our product development. We believe that the prerequisite for that is a long-term relation built on strong trust.

Many suppliers have already taken the opportunity to accept the challenge to join our supplier network. Even so we are always interested in new suppliers willing to accept the challenge to strive for excellence.

In addition, Wärtsilä is continuously working with the supply chain where we since several years back have started significant production in Asia and other parts of the world. This means that we are especially looking for committed suppliers in Asia, but also from other parts where Wärtsilä is setting up production. That can be either new suppliers in the region or current suppliers willing to join us in our global model by also setting up production in the same region.

If you belong to our supplier network already today, we are looking forward to continuing the work with you towards excellence. We expect that you proactively challenge also us in this work. If you are not a part of our supplier network and would like to take on the challenge to join our stimulating network; do not hesitate to contact us.