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Christian Galichon, Vallourec - Supplier & client relationships

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Vallourec is renowned more for its stock market performances than for its products; tubes without industrial welding. The company operates in a highly-cyclical universe. After having experienced three years of high growth; for the last 6 months, it has been subjected to a significant decline, which has led to high volatility – of around 30% – of procurement figures. These changes, obviously, impact our suppliers considerably. After 3 years of high growth, where supplier risk management was concentrated on the transactional aspect and on assuring provisioning, we were suddenly ‘catapulted’ into a relationship where we had to manage considerable amounts of stock. The crisis provides Management with several opportunities. It enables “challenging” internal clients, encouraging them to understand the nature of their requirements better, and, more globally, to reassess the majority of these requirements. It creates a new internal client relationship that we had 6 months ago, It’s a speech radical change, it’s the first point. Regarding suppliers, the relationships, which were previously transactional, are now becoming more collaborative. Suppliers have some difficulties. How can we manage these difficulties internally? We are moving on from supplier risk management to a more highly-participative approach. The aim is to optimize the supplier panel, to select the various suppliers. Which will be selected and which will be left behind? How can we work more optimally with those we select? This selection is carried out in partnership with our internal clients.

Video Details

Duration: 2 minutes and 52 seconds
Country: France
Language: French (France)
Genre: None
Views: 253
Posted by: cscideas on Dec 16, 2009

Christian Galichon - Procurement departement director of Vallourec - is making a point about the change in client and supplier relationships

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