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.