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Suppliers

Wärtsilä has defined its processes for choosing suppliers, determining their requirements and developing the supply relationship. Wärtsilä offers its suppliers a partnership that strengthens the competitiveness of both parties. A precondition of this partnership is open and continuous dialogue. Partnership thinking is also applied in Wärtsilä's research and development activities, where the company often collaborates with universities and key suppliers.

Wärtsilä assesses and manages its suppliers through its Supplier Management System. Wärtsilä regularly conducts supplier evaluations. These are divided into three categories: pre-assessment, auditing, and performance review. A pre-assessment is made of potential new suppliers before the supplier relationship begins. Audits are conducted on new suppliers and on suppliers whose performance does not meet Wärtsilä's requirements. Performance reviews are performed to solve a single deviation from requirements. In the assessment of a supplier, Wärtsilä focuses on several critical indicators, where Wärtsilä expect the supplier to have high standards and performance: compliance with relevant legislation; environmental,
occupational health and safety and quality management; process mapping and quality plans and social performance.

In 2010, Wärtsilä rated more than 200 of its key suppliers and conducted dozens of supplier evaluations. Wärtsilä Supplier Development activities are continuously implemented globally. Through the utilisation of the Supplier Development Toolbox, we will improve our suppliers´ quality and delivery reliability level to all our business units. The most important tool in the Supplier Development Toolbox is the utilisation of the Part Quality Assurance Plan. The purpose of the part quality assurance is to make sure that the supplier is able to produce the intended parts in a rational and efficient way. All strategic purchasing functions within the Wärtsilä businesses, Industrial Operations and Corporate Supply Management will be merged and streamlined to further achieve economies of scale in purchasing activities within Wärtsilä. Wärtsilä Supply Management (WSM) will have one governance model, one team, one target and one voice to our suppliers. This eliminates overlapping work and provides better control over all spending and suppliers. The Supplier Development and Quality team supports Wärtsilä's targets, enabling customer satisfaction by securing the right quality, on time deliveries and optimised cost performance from our suppliers.