Supplier Relationship Management
Fostering a mutually-beneficial relationship to achieve more shared value
The aim of the purchasing teams is to establish an active and high-quality working relationship with suppliers in order to create a purchasing strategy suited to Michelin’s requirements and challenges.
The main elements of this strategy are discussion and cooperation, transparency, the desire to carve out the future of mobility together and responsibility in the market now and in the future. Our Supplier Relationship Management (SRM) approach operates according to these principles.
Suppliers are divided into 4 categories or “tiers” to manage our relationship with suppliers as efficiently as possible. Our teams develop different levels of relationships along with specific tools according to the category:
- Tier 1: establish a real strategic relationship based on innovation and/or partnership projects
- Tier 2: develop the business relationship for a competitive advantage which benefits both parties
- Tier 3: optimize the current relationship based on continuous progress
- Tier 4: pursue commercial relationships
This collaborative work allows Michelin and its suppliers to share more value and measure long-term effects by drawing up improvement plans.
Revisit the 2018 Edition of the MICHELIN SUPPLIER AWARDS
This initiative was launched in 2011 to recognize the performance and commitment of our suppliers.
As an SRM initiative, it rewards the best suppliers in our three purchasing domains: Raw Materials & Energy, Industrial Purchasing and Services.
Award-Winners are chosen via a selection process carried out by the purchasing department and the Group’s other departments.
The suppliers are judged on their performance in quality, innovation and sustainable development..