The Volvo Group has one of the largest purchasing departments in the world. During 2015, purchases of goods and services amounted to approximately 200 BSEK. In its first tier, the Volvo Group has around 36,000 subcontractors of which about 6,000 supply parts for the Group’s products. One job in the Volvo Group generates many other job opportunities directly with subcontractors and indirectly in society at large. We believe that behaving responsibly is the only foundation on which a sustainable business can be built. For this reason, the principles in our Code of Conduct are applied in all our purchasing processes.
Responsible purchasing involves encouraging correct behaviour, managing risks and building long-term relations with our suppliers to improve social, environmental and business ethics in the supply chain. The Volvo Group strives to ensure that unethical values are not incorporated into our products and services, and we base our work on a minimum standard in our Code of Conduct. We believe that high standards in our programme for responsible sourcing will result in high productivity and stable long-term relations, which will benefit all parties.
Purchasing in the Volvo Group is organized into several purchasing organizations.
Volvo Group Purchasing is the global group function covering the purchase of automotive products and parts including aftermarket, for all truck brands in Volvo Group Trucks.
Volvo Group Purchasing also covers the Indirect Products & Services (IPS) Purchasing. IPS optimizes the supplier base and drives standardization and sourcing of all goods and services for the Volvo Group in both the industrial system, including Facilities, Consumables, Production equipment, Labor, Fluids, and the Group’s Development Service area, including Engineering, Marketing, Sales & Printing and Travel.
Volvo Construction Equipment (VCE) Purchasing and Supplier Management (P&SM) is a VCE globally based organization dedicated to the sourcing of high quality materials and components for the premium construction equipment that Volvo produces: Wheeled & Crawler Excavators, Articulated & Rigid Haulers, Wheel Loaders, Pavers, Compaction Machines and their respective aftermarket-related services. More than 400 purchasing professionals distributed worldwide contribute their collective expertise in the search for excellence through a supplier base of more than 2,400 partners.
Volvo Bus Purchasing is the global bus function covering the purchase of automotive products and parts for all bus brands in Volvo Bus Corporation.
Volvo Penta Purchasing is the global Penta function covering the purchase of automotive products and parts for complete power systems and services for leisure boats, workboats and industrial applications- Marine Leisure, Marine Commercial and Industrial.
Without the type of products and services the Volvo Group provides, the societies in which many of us live would not function. Like a circulatory system, our trucks, buses, engines, construction equipment and financial services are involved in many of the functions that most of us rely on every day.