Our supplier requirements

Our supplier requirements

To achieve the Volvo Group's vision to be the world's most desired and successful transport solution provider, we place high demands on our suppliers. We expect products and services to be of top quality, and we expect good management from all our suppliers, including the lower tier ones.

They should deliver state-of-the-art quality with perfect precision right through the supply chain, from project planning and in production facilities right through to delivery to our plants and customers. We also expect our aftermarket suppliers to compete with offerings for a complete product life cycle that minimize vehicle off-road time, and to offer a service level that supports our zero incident promise to customers.

Furthermore, we expect them to offer committed, pro-active collaboration that helps achieve cost savings, meet environmental and fuel efficiency targets and develop new innovative technologies.

Business Principles

To achieve that vision, we need to build on a broad, solid foundation of responsible business principles and sustainable behaviour as outlined in our Code of Conduct. We believe that behaving responsibly is the only foundation on which we can build a truly sustainable business with our suppliers.

The Volvo Group Code of Conduct is clear about our commitment to compliance, including anti-corruption, competition law, sanctions and other issues that influence how we do business with suppliers. Our compliance with these requirements helps increase our business opportunities and serves as a tool for exceeding the expectations of current and future suppliers.

Our values

Volvo Group Purchasing aims to develop our suppliers as partners. We do this by selecting high performing suppliers that deliver the best possible products and superior services that add real business value to the Volvo Group, on both a global and regional basis. Our collaboration drives growth, profitability and continuous improvements with a focus on customer success. Our strong relationships and requirements are based on the Volvo Group values where customer success is key.

Quality

Quality has gradually come to mean more than quality assurance itself. Our suppliers must be able to take complete responsibility for environment impact as well as a holistic view regarding material handling and information exchange. The ability to achieve effective continuous improvement requires good knowledge of modern tools and methods that are offered by quality technology.

Environment

We expect our suppliers to actively contribute to reducing the environmental impact of present and future products and services, and to commit to reducing the environmental impact of our manufacturing operations.

Together with our suppliers, the Volvo group has a clear responsibility to reduce environmental impacts from transport and other services. Our suppliers believe in environmental care and actively work with environmental resource management and environmental management systems such as ISO 14001 and EPA/SmartWay. As part of our commitment to limiting and influencing environmental impacts from maritime transport, Volvo is an active member of the Clean Shipping Network, and we encourage our sea carriers to report to the Clean Shipping Index. For the same reason, road transport suppliers are encouraged to comply with our engine class requirement.
 Engine class requirement.pdf

Corporate Social Responsibility

Suppliers and Contractors to the Volvo Group shall deploy and respect ethical standards throughout the supply chain. Our commitment and approach to CSR, Sustainability, Environment and Safety, in compliance with the principles of our Code of Conduct, is integrated into our policies and implemented through our everyday business decisions and actions with our suppliers.

As a member of the European Automotive Working Group on Supply Chain Sustainability and in line with general automotive industry practice, the Volvo Group uses a self-assessment approach to evaluate supplier performance and compliance with our ethical requirements. At the time of a sourcing decision regarding a new quote, the CSR evaluation may not be more than 3 years old.

The self-assessment can be found in the Key Elements Procedure 6 – Corporate Social Responsibility.pdf

Formal requirements

After passing the initial screening, you will be enrolled in a Supplier Evaluation where you must comply with our Key Elements Procedures (KEP). These are requirements that span over all supply types. You can find them in the download section below. 

Payment Conditions

Suppliers and Contractors must comply with the Payment Terms for the Volvo Group. Details about Volvo Group Payment/Financial Information and General Purchasing Conditions will be provided by your purchasing contact, and can be accessed via the Supplier Portal once you are registered as a supplier.

For details on invoicing, please visit Purchase to Pay

Delivery requirements

When shipping products to any country outside your own, as a supplier you are responsible for calculating the Regional Value Content of your products. You will be required to submit a Certificate of Origin for goods annually, as well as with each shipment in regions where this is required. Information on our various trade agreements can be found via the links below.

Download

Key Elements Procedures (KEP)

After passing the initial screening, you will be enrolled in a Supplier Evaluation where you must comply with our Key Elements Procedures (KEP). They are requirements that spans over all supply types.

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Other requirements

Material and Substances Composition Reporting in IMDS

The Volvo Group actively strives to eliminate harmful substances from the products. In order to track and follow up on substances of concern, material declarations are requested for new and modified parts. The reporting of material data sheet (MDS) declaring the material and substance content of a part is done in IMDS (International Material Data System).

Volvo Group and REACH

The new chemical regulation in the European Union (EU), REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) (Regulation (EC) No 1907/2006) went into force on 01 June 2007 and will have a major impact on chemical and associated industries worldwide which manufacture and/or import chemicals, preparations and articles to the EU.

Specific Requirements for Indirect Products and Services suppliers delivering to the Volvo Factories in NRV, Macungie and Hagerstown (North-America)

Suppliers and Contractors to the Volvo Group must comply with:
ISO 50001 demand for delivered products and services. Note that a portion of our procurement evaluation is based on the Energy Performance of the items we purchase.