For the CMA CGM Group, procurement policy means answering business needs by procuring goods and services with optimum costs, delivery time, service and quality for the Group.
Promoting proactivity and initiative, the procurement organizations anticipate market trends on strategic spend categories and leverage this knowledge to develop sourcing strategies with key decision makers within the Group.
In order to deliver the best services and products, CMA CGM conducts, with key suppliers, continuous improvement programs aiming at reducing Total Cost of Ownership.
And as a responsible company, the Group ensures that procurement transactions are performed in compliance with all the applicable laws and regulations as well as the internal policies and procedures adopted by CMA CGM whilst reducing the administrative burden linked in the process.
Productivity ideas form
Considering of the current situation of the shipping industry, we need the support of all our suppliers in order to continue to keep ahead of our competition. Our objectives for cost reduction are ambitious and we rely on you to submit constructive proposals. A dedicated form was created to help with this proactive approach.
Our expectations from CMA CGM suppliers
CMA CGM promotes suppliers relationships focused on the expectations defined below:
Cost performance is a definite discriminator in our industry and our customers have rightfully strong expectations of CMA CGM in this area. Consequently, we expect our suppliers to:
- Focus on generating year-over-year improvements that result in lower costs to CMA CGM. A dedicated “Suggestion form” was created to help our suppliers in this proactive approach.
- Ensure that purchased commodities benefit from worldwide benchmark rates.
- Continuously strive for miniming total cost of ownership.
- Support cost transparency in all communications with CMA CGM.
- Be committed to challenge all elements of costs across the complete supply chain.
In a volatile market such as the shipping industry, one the CMA CGM’s main strengths is its ability to adapt and evolve quickly. We expect the same level of flexibility among our suppliers by asking them to:
- Honor commitments to deliver on time the proper products and services, to the correct CMA CGM designated location, in the proper quantity, and with consistent lead times.
- Recognize responsibility associated to supplying CMA CGM on a 7 day, 24 hour basis.
- Demonstrate flexibility to adjust supply capabilities to our customer requirements.
- Establish and communicate to CMA CGM your supply contingency plans to bridge any potential supply disruptions, including force majeure events.
- Provide proactively relevant economic, financial or commercial information pertaining to your company helping CMA CGM to assess short and long term risk associated to our relationship.
The CMA CGM Group prides itself in its ability to provide its customers with a high level of service quality. Our customers expect the best from us and we expect the best from our suppliers who must:
- Strive to consistently deliver goods and services at a benchmark level of quality.
- Comply with applicable CMA CGM specifications for packaging, labelling, storage, shipping, tracking, and containerization.
- Deploy a documented quality management system capable of meeting the latest ISO 9000 standards. Ensure that variance signals from that system are diligently dealt with.
- Maintain records that support component traceability and have a goal to resolve any customer complaint with a sense of urgency.
- Use Total Quality Management (TQM) approach to continuously improve reliability of products and services
Whether it is by improving the technologies of its vessels or its information systems solutions, CMA CGM is constantly looking out for innovative solutions in order to always be a step ahead. We expect our suppliers to:
- Generate innovative product and services ideas, enabling CMA CGM to differentiate itself in the marketplace.
- Provide technical support throughout the full life cycle of the products and services sold to CMA CGM.
- Partner with CMA CGM for timely delivery of innovations through new technologies.
- Use information technology to drive standardization and simplification of both business processes and product platforms.
As a leading worldwide shipping Group, CMA CGM knows that a responsible attitude cannot be dissociated when facing the issues of our modern societies. We expect our suppliers to:
- Comply with all applicable local, regional and national regulatory requirements as well as with CMA CGM's health, safety and environment standards for suppliers.
- Commit to achieving and demonstrating continual improvement in health, safety and environment performance.
- Communicate freely, completely and accurately the hazards of products/services that you provide and supply any requested information regarding your EH&S performance.
- Ensure all materials supplied are appropriately registered for their intended use and are in compliance with country specific regulations.
- Comply with all applicable local, regional and national laws and regulations.
- Demand that all your employees exhibit the highest standards of business integrity and ethics.
- Actively protect the confidentiality of all CMA CGM information.
- As part of the CMA CGM on-boarding process, suppliers need to enroll in CMA CGM Group Third Party Code of Conduct.