Supplier performance target  [ Return towards  Suppliers  ]

Introduction

Supplier performance expected by Air Liquide Welding is not based solely on competitive price offers. It results from an optimal selection of suppliers in order to develop a long term relationship, and then working closely with them in specific areas to improve quality and productivity

This strategy is based on establishing a working relationship through mutual expectations of progress. This is achieved by implementing an assessment process through supplier non-conformity reports, in order to setup corrective actions for continuous improvement of performance.

The success of this program will be shared with suppliers who contribute to meet our commitments.
Our more efficient suppliers will have rewarded of increased sales and profits, due to the transfer of a greater share of business from Air Liquide Welding.

Quality

Air Liquide Welding has set as a goal, zero defective products or non-conforming services provided from each supplier. Air Liquide Welding’s expectations from suppliers is to provide defect-free materials and services.

The quality and reliability expected will be achieved through :
- Superior control of technical design,
- Improvement of the control process and its integration along all production and Management systems.

Air Liquide Welding’s goal is to procure 100% Quality products and services. That requires suppliers to understand and adopt systems of measurement and evaluation of their processes to ensure that Air Liquide standards are achieved at all times. This should be achieved by the utilization of statistical process control techniques where appropriate.
These requirements include the establishment of documented control procedures of quality systems. Suppliers should be able to provide upon request, reliability data of all products and associated controls.

The data and control procedures have to be available and accessible to Air Liquide Welding personnel during a possible quality audit of suppliers.

Air Liquide Welding expects suppliers to react quickly and efficiently to resolve reported quality problems.

Technology

Air liquide Welding expects from suppliers :

- To be leaders in their respective field and markets in order to allow them to compete with advanced technology in design and manufacturing.

- To get involved occasionally in joint engineering of new
products launched by Air Liquide Welding and during product life cycle.
These working relationships will enable Air liquide Welding and suppliers to nurture a long term relationship and introduce continuous quality and cost reduction improvement.

Delivery

Air Liquide Welding expects suppliers to deliver 100% of our purchased products and services on time, as requested on our purchase orders. Delays on deliveries are not allowed, and all deliveries have to conform to general delivery specifications.
In the case of possible modifications in delivery time, suppliers have to inform Air Liquide Welding Supply Chain for agreement.
Lead times from our orders have to be continuously adhered to.
Furthermore, suppliers are expected to meet any request of delivery to all European Air Liquide Welding logistics platform.

As Air Liquide Welding can supply forecasts to our suppliers, it is expected that suppliers will use this information to manage their lead-times and to be able to provide products and services in the shortest times possible.

Costs

Air Liquide Welding’s goal is to be a leader in the welding and cutting market, through continuous cost reduction and obtaining the best total cost of purchases.

To remain competitive worldwide, Air Liquide Welding should have the lowest price along with superior quality products.
Air Liquide Welding is willing to work with suppliers to integrate price and value process analysis in collaboration with Air Liquide Welding, in order to establish a common strategy of cost reduction by introducing new methods of production, management or new technologies.

Air Liquide Welding’s suppliers must be able to actively implement cost reduction programs to obtain the lowest global cost possible. Price increases are not acceptable without Air Liquide Supply Chain being informed and justifications being provided. Any unjustified increases are not acceptable.

Air Liquide Welding expects suppliers to enter into cost benefit analysis of the different steps of design, for optimizing cost factors which compose the product or service. Suppliers have to submit recommendations for simplifying design and decreasing costs.

Flexibility and reliability

Air Liquide Welding expects from suppliers:- To be reactive in order to fulfill our needs with short cycle time by adopting an appropriate level of inventory management, and by keeping a high level of flexibility.

-To resolve all incurred problems and to be responsive to all Air Liquide Welding supply chain requests

- To be able to respond quickly and positively to changes required by Air Liquide Welding

- To inform Air Liquide Welding about any potential problem discovered in order to develop a work plan to minimize the impact on both companies .

Financial stability

Air Liquide Welding expects to develop long term relationships with suppliers and needs to check their financial position in order to know their ability to grow financially, and technically to face our future needs.
Suppliers should be able to provide the appropriate data and documents such as end-of-year balance sheet.
Those documents will be kept by Air Liquide Welding as confidential information and only be used for supplier’s financial evaluation.

Environment

To be compliant with Air Liquide Welding policy for the respect of the environment, suppliers should conduct their business in an environmentally responsible manner, which we see as an integral part of our overall respect for the environment.

Air Liquide Welding suppliers are required to have a environmental policy in terms of improvement, and protection of the environment.
Furthermore, Air Liquide Welding suppliers are required to comply with local environment laws and regulations.