Purchasing strategy:
The highest standards
at every level

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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

Product:

  • Zero incidents
  • 0 PPB (defective parts per billion)

Project:

  • All initial samples must be good, right first time and on time

Service:

  • 100% service level
  • Zero logistics incidents

Competitiveness

  • Continuous reduction in the cost of materials and components
  • At least one technical productivity suggestion per month and per supplier

Advanced technology

  • All design suppliers integrated right from the initial phase of our projects
  • Development time kept strictly in line with project milestones
Our requirements apply to ethics, integrity, sustainable development, business conduct and behavior. This is why all Valeo’s suppliers must comply fully with and sign up to Valeo’s Code of Ethics.

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.

Supplier commitment to Sustainable development

The supplier must complete and return the following document, signed by the Company's management, to the Valeo buyer who so requests.

Supplier commitment to Sustainable development

Following the U.S. Securities and Exchange Commission ("SEC") initiative on responsible sourcing of minerals originating from conflict-affected and high-risks areas, Valeo suppliers are invited to take note of the below communication.

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