Suppliers

Committed supplier network

Wärtsilä strives for world class performance in quality, delivery, cost, lead-time, solutions and innovativeness. We believe that this can only be achieved by sharing common goals, and by building a strong business relationship with our suppliers. The success of Wärtsilä also leads to the success of our suppliers; consequently – a mutual benefit and opportunity.

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.

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.

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Supply Management in Wärtsilä

Mission

We create value for Wärtsilä's customers through our supplier base by ensuring supply with the right quality, delivered on time with the lowest total cost and fulfilling customer’s lead time requirement.

We build excellent long-term relations with our key suppliers, create strong commitment to become the preferred customer. We select the right suppliers by benchmarking and sourcing globally. We optimize and innovate the supply chain and invite our suppliers early in our development processes. We develop our people and our organization to reach world class performance.

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
Supply Management organisation

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 and is managing the strategic sourcing activities for indirect materials and services in all businesses and support functions.

Centralised forum for supply management with representatives from all Businesses is accountable for supervising the way of working and have the needed cross-divisions governance.