We classify our suppliers in four categories depending of their long term performance and strategic interest for the Vaillant Group, based on the fit to our product segmentation, our brand differentiation strategy, our technology developments, and an assessment of performed services.
All actions referring to the new Vaillant Group Purchasing Strategy will be first implemented with preferred suppliers, and then with strategic suppliers. The involvement in strategic development projects will take place accordingly.
Only suppliers which are classified in the categories P, A, and B will be included in the approved supplier list, which is mandatory group wide to get orders. Forbidden suppliers of the XX category will have to make significant improvement before being authorized to go into a phase-in procedure.
Vaillant Group has a quarterly systematic and recurring system of supplier assessment and evaluation. The supplier performance is not only measured in terms of cost, but also in terms of quality, development and logistics along with management and financials strength.
Furthermore, in every assembly site, operational buyers are working daily with suppliers to resolve all problems that could occur, and are proposing supplier improvement programs as well as supplier assistance by external experts.
Suppliers which will not perform as expected will put themselves out of the approved supplier list.
Benefits will profit both sides, provided there is a commitment to discuss openly all process-related subjects.