Wärtsilä has published a new global Supplier Handbook that explains the standards required of all existing and potential suppliers. This is the first time that all of Wärtsilä’s requirements and standards have been gathered into a single, easy-to-read overview. The handbook is also testimony to the many years of dedicated work performed at Wärtsilä to achieve a sustainable, world class supply chain.
Download Wärtsilä Supplier handbook
We strive for world-class performance in quality and on-time delivery. For this purpose, we have put much effort into managing our supply chain so as to offer the best possible service to our customers while being a responsible contractor,” says Jaap Huisman, Director, Supplier Development & Quality at Wärtsilä.
The role of Wärtsilä Supply Management (WSM) is to ensure that all products and services are produced and delivered on time, with the right quality, and at optimal cost. The scope of supply management covers all businesses and support functions in all regions, globally. Currently WSM employs more than 200 experts in 15 countries in Asia, Europe, and North and South America.
All in a single overview
Centralising the organisation has been only one of the ways that Wärtsilä has focused on supply management over the years. Global ways of working have also been standardised, while related documentation and requirements have been harmonised.
The newly published Supplier Handbook represents the latest evidence of this commitment to continuous improvement. For the first time it gathers all of Wärtsilä’s requirements into a single overview, which can now be easily communicated to suppliers. The handbook lists a number of minimum requirements for suppliers. It also clarifies what actions suppliers should take to ensure the continuous development of their systems, processes and structure.
“We had hundreds of people involved in the creation of the handbook and spent some 12 months working on it. It’s been a huge, but also a very meaningful, task. We believe our suppliers will also appreciate it,” Huisman notes.
Strong emphasis on entry criteria, follow up and training
One of the most critical evaluation points is when Wärtsilä is contracting a new supplier, or ordering new parts from an existing one. Strict processes are in place on how to assess potential new suppliers. Huisman gives a few examples.
“With regards to new suppliers we evaluate, for example, the company’s structure, its relevant technical capability, and its quality management system. We also have several criteria on sustainability, all of which are relevant. These include compliance with rules and regulations, managing the health and safety of employees, respecting human rights, preventing discrimination, preventing the use of forced or child labour, and the application of an environmental management system, to name but a few,” Huisman explains.
Once a new supplier has been approved, the auditing system ensures that any issues raised with suppliers will always be escalated – if necessary, to the very top management at Wärtsilä. In the worst case, any violation of the stated principles can result in an automatic discontinuation of cooperation with the supplier in question.
“In all cases, we will try to work together with our supplier in a constructive way in order to find a way to improve the situation. On the other hand, our core values as stated in our Code of Conduct can never be compromised.”
To ensure that there is a single way of working globally; training is a constant focus point. All supply management employees, including strategic purchasers and supplier development engineers, are trained on a monthly basis to keep them up to date with their respective product area, as well as with the latest developments in supply management.
Moreover in 2012, some 400 employees throughout the company that deal directly with suppliers were trained to ensure that there is just one way of working with suppliers. Furthermore, nearly 13 000 of the company’s employees have already attended the Wärtsilä Code of Conduct training programme.