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The Altrad Group has a purchasing turnover of 430M€ (end of Sept 2013). This significant amount of expenditure represents real purchasing power in regard to its partner suppliers.
Marked similarities in the business of the various group companies and thus in the type of purchase allow us to obtain synergies. The main purchasing markets of the Altrad Group are: raw materials, production accessories, subcontracting, materials for the building trade, temporary work, non-production purchases.
The purchasing teams are in daily contact with our partner suppliers to ensure that our customers' requirements are matched by those applied by the suppliers:
To manage these important issues, the Group has an extended, decentralized purchasing team able to operate in a perfectly coordinated network. This organization has the double advantage of playing on its purchasing power and continually comparing best practices and markets, while maintaining proximity to the sites (factories or agencies).
Coordination exists on several levels depending on the market: group, national or site. This coordination is subject to precise criteria allowing different types of projects to be conducted: grouped negotiations, value analysis of processes or products, product rationalization, inventory optimization upstream, etc. For example, steel, the main raw material required to manufacture Altrad products, is dealt with in a perfectly coordinated way between pre-defined market areas. Local purchasers are directly involved as market heads on behalf of the other Group entities.
The fundamentals and values of the Group also apply to our daily relations with supplier partners. To maintain these relationships an essential vector is communication, which the Group's purchasing teams seek to develop both internally and with our partner suppliers.
The Altrad Group is constantly expanding. Its proactive growth policy brings us into contact with new markets and new partners, developing sourcing with them in Europe and around the world. To support this development, the Altrad Group set up a sourcing office in Asia in 2006, to take advantage of the most competitive market conditions. This activity is developing and constantly adapting to a rapidly changing market.
In conclusion, Altrad Group Strategy in terms of purchasing is: