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Purchases

Purchases made by STROC are various : raw materials, consumables, supplies, accessories, subcontracting, service provisions, intellectual service provisions, equipments, information systems, etc.

The bulk of STROC supply comes from national distributors and providers up to 80 %. Some purchases (20%) are made directly abroad when conditions become more interesting or when raw materials and supplies are not available locally.

Basic fundamentals of Stroc Purchases

Procedure

A handbook of basic rules and procedures governs the guiding lines to follow for purchases and supplies within the STROC group aiming at :

  • Precise organisation
  • Transparent sales practices
  • Compliance with responsible purchase commitment
  • Social responsibility in Purchase practices
  • Environmental protection
  • Compliance with Labour law
  • Favour the best partners in terms of safety, quality, timeliness, cost efficiency, innovation and services.

SAP information system

STROC chose to implement an SAP information system enabling the use of the whole flow of information concerning Purchases.

The strengths of this information system are :

  • Transparency and traceability of operations
  • Suppliers’ performance measure
  • Suppliers’ payments’ position

Purchase mode

Purchases of the Stroc group are divided into 3 large categories :

  • Recurring purchases : these are regular purchases of raw materials or service provisions or those requiring regular interventions. These purchases are often made under the form of framework agreements or price lists.
  • Purchases dedicated to projects : may be recurring or occasional. In this last case, the purchase is processed in a specific way under general conditions of purchase or specific agreements.
  • Investment purchases : these purchases are occasional and often represent high financial stakes.

Access points : Purchase Department

Goals of the Purchase department

  • See to it that purchases and supplies are secured by choosing the best service providers who meet the determined criteria in terms of capacity, quality and logistical performance.
  • Meet the needs at optimal cost : these needs are expressed in terms of functional performance, life duration, operating and maintainability condition, by integrating the overall purchase cost and operating costs.
  • Supervise relationships with suppliers by calling on suppliers having a technical and financial foundation adequate to the technical and sales objectives of STROC.
  • Guarantee the compliance with regulation and ethics.

Accreditation, assessment and follow-up of suppliers

The accreditation of suppliers is applied to all suppliers delivering strategic items.

The accreditation procedure may be launched following a written request by the supplier or the company itself.

Prospecting is made by STROC to search for new products or suppliers or following a new need, particularly for items requested for the first time, in order to locate the manufacturer and potential resellers.

File presentation

The file is made of a detailed questionnaire, to be filled in by the supplier then submitted to the Purchase department of the STROC group along with the necessary documents according to the requested purchase centre.

Introduction in the supplier panel

After study of the file and potential visit of the supplier’s premises, this latter, if referenced, is introduced in the computer file of our supplier panel through :

  • The delivery of a referencing code
  • The entry of the referencing code, corporate name, details as well as category codes for which the supplier has been chosen (corresponding to the families of goods sold by the supplier)

Suppliers’ follow-up

Suppliers are classified according to different categories and are submitted to an annual re-assessment according to very accurate criteria.

Suppliers’ assessment criteria are based on :

  • Delivery time
  • Product compliance
  • Service quality
  • Response time to invitations to tender
  • Administrative quality
  • Price level
  • Service provision quality