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Purchasing Strategy

Valeo’s purchasing strategy is simple: to seek out the most competitive, innovative and best-performing suppliers. We then rigorously vet each new supplier using a total quality and innovation approach through our internal processes which include, but is not restricted to, sound financial records, strict adherence to the Valeo Business Partner Code of Conduct and strong contribution in assessment audits.  

We develop close partnerships with those that come out on top according to our policies and award our partners fairly and equally through weekly committee meetings.

Just like us, our customers are always raising the bar in terms of quality and service. To maintain the highest standards in the world, we place strict demands on all our suppliers and involve them in a continuous improvement process, including:

  • Maximum responsiveness
  • Rapid resolution of warranty issues
  • A positive attitude

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We select the best suppliers and ensure they commit to continuous improvement by implementing:

  1. Rigorous selection processes thanks to our EVAL tools questionnaire and business allocation committees
  2. Qualification systems that incorporate process audits and product approval systems
  3. Ongoing monitoring that categorizes suppliers using a performance assessment grid and preferred supplier questionnaire

Find our country-specific General Terms of Purchase here.


A Virtuous Cycle

Every step of the way, we ensure a virtuous purchasing strategy by implementing the following key processes.

Quality & Service

Our purchasing strategy focuses on maintaining the highest-quality product outputs, processes and services. This means zero incidents and zero PPB (defective parts per billion) on all products. New suppliers are expected to send initial samples on time and right the first time. Finally, we require a 100% service level and zero logistics incidents from all of our suppliers.


To stay competitive, Valeo continually seeks to reduce costs in both materials and components. We consider our suppliers close allies in helping us find new ways to reduce costs. That’s why our suppliers are expected to manage and drive a consistent Productivity Plan addressing all potential levers of concern.

Advanced Technology

Our suppliers help us maintain a competitive edge by providing state-of-the-art technologies to use in our projects. We integrate design suppliers right from the start of project development and ensure we meet project milestones and QCDI (Quality, Cost, Delivery and Innovation) objectives. These objectives are shared in our Supplier Design Reviews in the quotation phase.


Ethics and Compliance in purchasing

Valeo maintains the highest standards of ethics, integrity, business conduct and sustainable development standards. Our business partners must adhere to all laws, regulations and compliance policies in effect. To ensure suppliers fully understand our expectations, they are required to:


Responsible Sourcing

We have ensured compliance since 2012 with the US Securities and Exchange Commission requirements regarding the trade and exploitation of conflict minerals* that seek to end violent conflicts in the Democratic Republic of the Congo and surrounding countries which are partially financed by this trade.

Hence, we request that all our suppliers:

  1. Comply with the Dodd-Frank Wall Street Reform and Protection Act of 2010
  2. Fill in the CMRT template and return it to Valeo

* “Conflict minerals” refer to gold, tin, tantalum, tungsten, cassiterite derivatives, columbite-tantalite and wolframite, which may be required to develop certain products.