Volvo Cars was integrated with Ford for more than ten years, which involved a joint organisation and shared work processes in many areas. Following its demerger from Ford, Volvo Cars now operates as an independent company and is reviewing its work processes – both internally and in relation to suppliers.

New supplier portal
During spring 2011, a new supplier portal was launched, a website that enhances communications between Volvo Cars and its suppliers. The portal provides suppliers with information on Volvo Cars’ working methods, purchasing terms and conditions and overall operational requirements.

This also communicates Volvo Cars' requirements, guidelines and expectations in such areas as the environment and social responsibility.

Long-term cooperation
Long-term cooperation with suppliers worldwide is of major importance for Volvo Cars’ success. Currently, some 450 suppliers supply car components and approximately an additional 3,000 suppliers provide Volvo Cars with other products and services. Overall, some 70 percent of the car’s value derives from suppliers.

Responsibility all the way
Volvo Cars imposes high demands in terms of quality, product development, cost effectiveness, delivery capacity and environmental consideration. Fundamental requirements in relation to production suppliers include environmental certification according to ISO 14001 and quality certification pursuant to ISO TS 16949. Other areas include quality assurance of suppliers’ manufacturing processes and the assessment of a supplier’s delivery quality and delivery capacity.

Volvo Cars’ values as regards human rights and good working conditions are communicated in the form of very clear demands to suppliers. Since 2003, Volvo Cars has had a code of conduct regarding basic working conditions that is communicated to suppliers through the company’s purchasing Terms and Conditions and the Social Responsibility Webguide. The code of conduct is based on the internationally recognised principles governing human rights in working life.

Training makes rings on the water
Volvo Cars supports suppliers in exercising conscious and responsible leadership through supplier training programmes. The company also participates in an international network, whose purpose is to develop a joint approach to working conditions in the supplier chain.