Key Points :
- External Purchase Trend for the coming years ...
- The Thales Purchasing Strategy is driven by the trends in its markets (aerospace, civil and defence).
- Thales policy has two main strands , which are the Supplier Selection and the Supplier Performance Management.
- Thales has the ambition to become a Preferred and Reliable Partner for its Strategic Suppliers
The Purchase Trend Mapping
Business Impact on purchasing
Thales is developing its Business in a changing marketplace:
- Aerospace and Civil Markets are becoming increasingly competitive with new players emerging from the continuing globalisation of the Supply Chain. Furthermore, sales are being traded in US dollars, which makes Thales highly sensitive to the "dollar effect"
- Defence Customers are requesting highly integrated Systems and Turn-Key Solutions with full availability and support over the 20 to 30 year life cycle.
- The continuing trend by national governments to reduce spending on defence projects is further increasing the need for Thales to become more competitive in this global marketplace.
The Purchasing manager, in close cooperation with internal customers and Quality managers, is responsible for applying the Thales' Supplier Quality Policy, which has two main strands:
- For shared purchases by units : consolidation of needs among a limited number of targeted suppliers competing for selection on criteria including expertise, compliance, performance and contractual terms.
- For strategic subsystem purchases : selection of suppliers and specific subcontractors on criteria specific to the programme (cooperation, local content, customer requirements, etc.), industrial and financial capacities, and long-term outlook. Contract negotiations must be based on well-defined customer requirements. Involving suppliers and subcontractors as early as possible and sharing risks and opportunities are important practices within the Thales organisation.
Supplier performance management
Thales seeks continuous improvement in supplier and subcontractor management by tracking and measuring performance with respect to scheduling, production and resource management, responsiveness, and the quality of products and services.
Suppliers are contractually committed to the terms negotiated. They are all evaluated against the same criteria of on-time delivery and compliance. Thales applies penalties in the case of poor performance. Evaluation results are communicated to suppliers and action plans are defined to identify root causes of problems, manage risks and make improvements.
Thales is committed to the development of its strategic suppliers, providing diagnostic expertise and making recommendations for improvement across the entire supply chain.
Preferred suppliers must meet the condition of continuous improvement. Suppliers who are unable to improve poor performances become nonrecommended suppliers and risk losing all business with Thales.
Thales has the ambition to become a Preferred and reliable Partner for its Suppliers.
Together, Thales Purchasing and Operational teams and our Suppliers strive to implement the following specific strategies