Interaction betwen Pirelli Tyre and its supliers

  • Approval of new suppliers: the sustainability limits have been integrated in this phase since 2007.
  • Monitoring of vendor (Vendor Rating) is assessed in an independent audit
  • Purchasing Portal: this portal provides both an assurance of process uniformity and represents an on-going training process along with a knowledge sharing tool

Relations with suppliers are defined and enforced by specific Company processes. There are two fundamental underlying phases to supplier management:

  • approval of new suppliers, where the interdepartmental process based on specific quality standards led to the addition of the approved material/vendor to the Vendor List. This is the company’s list of approved suppliers for each individual product. The sustainability limits have been integrated in this phase since 2007.
  • monitoring of vendor (Vendor Rating), assessed on the basis of the quality of the product supplied or service provided, the quality of the commercial relationship, technical/scientific cooperation, performance in terms of occupational safety, environmental and social responsibility through on-site audits and periodic monitoring of the progress of the actions scheduled in any improvement plans that have been signed. The vendor’s sustainability is assessed in an independent audit.


The Vendor Rating covers all merchandise and geographical areas of purchase and is used as an integral component of commercial negotiations.
These procedures are supported by a special website available online through the Purchasing Portal. This website supports the Regulations (including the Purchasing Manual, General Conditions to be applied to suppliers), the Vendor List, surveys, Vendor Rating with feedback and the definition of support actions. This portal provides both an assurance of process uniformity and a guarantee of transparency, in addition to being a communication, on-going training and knowledge sharing tool.

The processes of dialogue and interaction with suppliers are the object of process improvement, in terms of both quality and tools. Specifically, the Vendor Rating results are regularly revised and commented on by the Purchasing Department. This process involves meetings organised with the suppliers, aimed at identifying any corrective actions or measures to improve performance.
Each purchase contract includes the name of the buyer contact, to provide the supplier with a company channel that is always available for any feedback.

Several new projects to improve the purchasing process and support relationships with suppliers were developed and implemented in 2010. In particular:

  • continuous improvement and extension of IT systems for systematic analysis and monitoring of the provision of indirect materials and services;
  • vendor training on sustainable management: pilot programmes launched in Brazil and Turkey;
  • launch of activities for the new Group “Purchasing Portal,” which is an advanced tool that from 2011 will permit managing purchases even more efficiently and with greater coordination amongst the various countries than is the case now. The new IT tool will also make it possible to conduct communication, awareness and training campaigns for vendors, in which sustainability will play a key role.