Suppliers: essential partners

What does procurement represent for a company like Thales?

Last year, the Group’s purchasing spend exceeded €9 billion, which is the equivalent of nearly half of our annual sales, and we currently have about 17,500 suppliers in 35 countries. The figures speak to the vital role that our supply chain plays in ensuring the success of our business.

I often say that Thales's performance can only be excellent if our suppliers are performing at their best!

What are your biggest challenges today?

Our two key challenges are to guarantee the resilience of our supply chain and address sovereignty issues. Geopolitical tensions, energy prices, the pressure on electronic components and increasing cyberthreats make it more critical than ever for us to protect our supply chain. We've taken a number of steps in this direction, with a particular focus on improving resilience to cyber threats.

In terms of sovereignty, we’re at a turning point. We've moved from an era where companies focused on producing more efficiently – and above all more cheaply – with globalised supply chains, just-in-time manufacturing, zero inventory and relocation of production operations, in particular from Europe to Asia. 

Since the COVID-19 pandemic, and with the current geopolitical situation and the war in Ukraine, governments have realised how essential it is to regain control over critical industries like defence, security, energy and healthcare. Given our lines of business, Thales has a pivotal role to play, but we can only play that role effectively with the help and support of our suppliers.

What do you expect from your suppliers?

First and foremost, we expect them to be as competitive as possible. But they also need to do as much as they can to anticipate any problems that might appear down the road. They are the experts in their fields, so they need to challenge us and propose innovative solutions.

And of course, to place operational excellence at the heart of their processes to maximize performance by increasing proactivity, speed, and agility, as well as managing risks and therefore effectively handling their OTD (On-Time Delivery).

We also expect support from our suppliers in meeting our commitments to ethical practices and ESG (Environmental, Social and Governance) performance. We expect them to sign our Integrity and Corporate Responsibility Charter, and ESG criteria such as emissions reduction targets and eco-design are an increasingly important part of our supplier selection process.

These are the foundations of a responsible procurement policy based on good faith, mutual trust and cooperation. It's a policy that can only succeed if both Thales and our suppliers work together in complete transparency and deliver on their commitments.

Focus on the traditional awards ceremony for suppliers

A highlight of the conference was the annual awards ceremony, with prizes attributed to the following suppliers:

• Operational excellence: Advanced Waveguide Technologies (USA)and Lumibird Photonics (Sweden)
• Innovation: LGM (France) and Humard Automation (Switzerland)
• Competitiveness: Micron Instruments (USA) and Asteelflash (France)
• ESG: Covestro (Germany) and BRM Recycling (Austria)
• Jury’s Special Award: Bharat Electronics (India).