case studies - Dresser-Rand

SUPPLIERS
ENGAGING OUR SUPPLIERS
• Supplier globalization
• Operational excellence
• Safety and compliance
• Technology-based risk
management
SOCIETY
Our business model requires strong, enduring supplier relations with
globally competitive companies. In 2011, we spent approximately $1.1 billion
with suppliers for engineering, manufacturing and services. We view our
supply chain as an extension of our manufacturing network. Training and
knowledge transfer helps new and established suppliers provide consistent,
efficient and safe delivery of our products and services. Contractual
requirements with our suppliers include the normal commitments to
quality and on-time delivery; however, we also include requirements for
implementation of a sustained continuous improvement program and
adherence to our Supplier Code of Conduct. The latter is particularly
important as our supply chain is globally expanded.
Both in 2011 and continuing in 2012, global supply chain expansion is
imperative and includes added focus in Brazil, Saudi Arabia, India, and
China. The expansion is particularly important in sustaining our expanded
client support in those regions.
Our requirements are the same for any supplier, independent of region,
with an overall focus on Operational Excellence—quality, cycle time and
total value.
As an advocate of minority and small business development, we are fully
committed to the economic growth and development of minorities, women,
veteran-owned, and small business enterprises, spending approximately
$200 million with them in 2011. We embrace our social responsibility to
support businesses locally, regionally and nationally where we conduct
business. We recognize the importance of maximizing our procurement
opportunities to welcome diverse business enterprises with compatible
value propositions.
By identifying and strategically aligning strong suppliers capable of
adding value to our business needs, we are able to provide a competitive
advantage in the marketplace while fulfilling the expectations of our clients
to support minority business development. Our efforts to proactively seek
qualified suppliers and share with them potential business opportunities
are never-ending. In 2011, we continued our participation in a variety of
affiliate outreach trade fairs, procurement forums and company/supplier
matchmaking events nationwide.
Expansion of our supply chain also requires skill, competency and talent
growth within the functional discipline. It requires higher skill sets and
understanding of global complexities. We have committed to training and
recruitment to meet these ends.
It is always the talent in our organization that drives the success of this critical
element of our business.
Ken Marcia
Vice President, Worldwide Supply Chain & Process Innovation
CORPORATE SUSTAINABILITY REPORT 29
CORPORATE SUSTAINABILITY REPORT 29