Procurement

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We at Valmet target to build long-term and close relations with our customers and selected key suppliers. We appreciate suppliers’ commitment to ensuring success in quality, on-time performance and sustainability as well as readiness for continuous innovativeness and improvements for cost. We all will succeed if we develop our work together and keep our promises.

Focus on innovation, re-design and quality

Valmet Procurement operates as the network of Procurement teams from our five business lines and five areas. This global network works with our supply base to move our customers’ performance forward.

Valmet has 30,000 active direct suppliers in more than 50 countries, and we spend 2.5 billion euros in direct and indirect purchases annually, where materials, machines and components comprise around two thirds, and purchased services one third of Valmet’s total spend. More than half of our purchases come from Finland and Sweden, but the share of sourcing from local suppliers in other countries is increasing. Valmet expects its suppliers to be proactive in improving cost-competitiveness, proposing ideas and being reliable what comes to costs, time and quality.

 

Valmet Supplier Relationship Management

Valmet Supplier Relationship Management (SRM) is a systematic way of managing and developing supplier relationships to optimize Valmet value through interacting, performance monitoring and risk minimizing. The target of Valmet's SRM is to develop two-way, mutually beneficial relationships with selected suppliers to deliver greater levels of innovation and competitive advantage.  

As a part of SRM, Valmet identifies critical suppliers by classifying them according to their strategic importance as part of Valmet's SRM program. Supplier classification is driven by the selected value drivers, e.g., innovativeness, sustainability, risk exposure, cost competitiveness, product/service importance, volume and spend size and non-substitutability.

Valmet has around 600 strategically important key and main suppliers, which represent around 40% of the total procurement spend annually.

Doing business with Valmet

Ensuring a sustainable supply chain is one of the material topics in Valmet’s  Sustainability360° Agenda. Sustainability is fully integrated into Valmet’s way to operate in its supply chain. As part of Must Win targets, Valmet expects its all suppliers to comply with requirements in the Sustainable Supply Chain Policy and pushes ahead with developing more sustainable supply chain practices globally besides ensuring procurement savings. Valmet expects its suppliers to continuously reduce CO2 emissions.

 

Valmet supplier innovations instruction video

Valmet supplier innovations instruction video

In this video, you will find a step-by-step demonstration video about how Valmet suppliers can submit innovation ideas to Valmet through the website.

Watch the video

Valmet has a systematic approach to integrate sustainability into its pro­curement practices globally. Valmet’s procurement process includes gates and actions to ensure that Valmet cooperates only with suppliers who share its ethical principles and ideol­ogy of responsible business practices. The supplier evaluation process is mandatory in eval­uating new suppliers before cooperation begins. Sustainability gates are an integrated and automated part of the process. The automated process en­sures that all suppliers are assessed in relation to their poten­tial sustainability risk, sign the Sustainable Supply Chain Pol­icy, and complete a sustainability self-assessment, if required based on the risk assessment.

 The online self-assessment is available in nine languages and covers business ethics, compliance, human rights and labor rights, health, safety and environment man­agement, as well as product safety topics.

We seek suppliers that are both financially sound and responsive to satisfy our customers with top-quality, technically excellent and sustainable components, materials and services, delivered on time. It is also absolutely essential that all suppliers comply with our policies and sustainability requirements.

Attached you can find Valmet’s general purchase conditions Valmet GPC 2021. They apply to all Valmet’s procurement. Local/regional amendments may apply (such as due to local currency, tax, and regulatory reasons).