Kerneos’ Purchasing function is tasked with integrating suppliers within the company’s value chain.
Purchasing is not merely negotiation – no matter how good – nor an administrative procedure, but contributes to optimisation by having people responsible for all stages in the purchasing process and the related procurement system. This means finding a match between the company’s needs and what suppliers are offering, in order to optimise the Total Cost of Ownership (i.e. the cost of acquiring and keeping the goods and services purchased), and to ensure the availability and durability of Kerneos’ procurement.
The Purchasing function is based on a Purchasing Policy, a Purchasing Organisation and a Purchasing Process.
We hope that these few pages will provide you with the information you need to encourage you to start or continue dealing with Kerneos.

PURCHASING POLICY

Kerneos’ Purchasing Policy is based on four key factors:

Analysing markets and building a worldwide panel of suppliers through:
 Consolidation of requirements at the appropriate level (Worldwide, Region, Country, Plant)
 Professional Purchasing marketing aimed at finding the best sources of supply and optimising the panel of preferred suppliers
 Strict final selection of listed suppliers meeting the prerequisites.

Building long-term relationships with strategic suppliers based on:
 Mutually meeting commitments
 A transparent relationship driven by a desire for continuous progress
 Paying attention to all cost components throughout the life cycle of the products purchased.

Following policy guidelines in placing contracts by means of:
 A fair, equitable, objective, mutually respectful selection process with all its suppliers, subcontractors and partners
 Guaranteed confidentiality of discussions and data transmitted, as if it were their own
 Continuous improvement as a driver for effective, lasting collaboration
 A "pioneer" spirit allowing suppliers to generate innovative proposals.

Rolling out Kerneos’ commitments on sustainable development and responsible purchasing to suppliers:
 A willingness to work with suppliers who will be present when Kerneos celebrates 200 years in the Aluminates business
 Acceptance sought from our suppliers of our vision of respect for people and the environment through the promotion of safety and responsibility
 Purchasing function efficiency enhanced by regular monitoring of its performance, guaranteeing the durability of those involved in the business relationship.

PURCHASING ORGANISATION

The organisation of Kerneos’ Purchasing function is based on purchase segmentation built following the logic of supplier markets. When a purchasing requirement is shared by more than one in-house influencer, the purchase is managed centrally at the required level of geographic consolidation (worldwide, regional or country) by a buyer in charge of the relevant segment. When a purchasing requirement involves only one corporate entity, this purchase is then managed by that unit’s local buyer. There are four purchasing segments identified within Kerneos:
 Raw Materials and Energy
 Transport (land, sea)
 Overheads, IT and Telecom
 Industrial Products and Services (investment, industrial maintenance).

PURCHASING PROCESS

The purchasing process is structured to comply with Kerneos’ purchasing policy of in terms of fair, equitable and objective selection of suppliers. It is based on four selection stages and one monitoring stage:
 The marketing of purchases to meet stated requirements
 Formalisation of the requirement to present a specification and enable suppliers to offer its products and services
 Consultation of the supplier market through a tender process
 Negotiation and contract signature
 Long-term management of the supplier relationship.

THE PREREQUISITES

Working together means not only sharing values but also meeting certain obligations. Consequently, we expect our suppliers to show:

Legal and social compliance:
 Compliance with legal and social obligations
 Adherence to health and safety standards, with special attention paid to the improvement of the accident frequency rate over time
 Support for sustainable development.

Consistent adherence to commitments:
 Compliance with specifications and commitments (contracts, orders).

Economic competitiveness:
 Solvency of suppliers, to be in a position to meet their contractual commitments and implement their development strategy
 Price competitiveness while maintaining quality of products and services.

Transparency and a mindset of partnership and innovation:
 Accessibility to your plants for quality control and/or audits
 Acceptance that our requirements may change, and creativity sought in the solutions on offer
 Joint involvement to ensure shared success within a well-run and responsible relationship.

Technical expertise and a desire for improvement:
 The implementation of a progress plan following recognised quality assurance procedures, to control security of procurement and improve performance.
 Active market intelligence and championing new initiatives.

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