Suppliers


“Suppliers and outside workers play a key role in improving the competitiveness of the business. While seeking the keenest competitive edge, the Group bases it relations with suppliers and outside workers on fairness, impartiality, and ensuring equal opportunities for all parties concerned. The Pirelli Group requires that its suppliers and outside workers comply with the principles and rules in this Code.”
(Ethical Code – Suppliers and Outside Workers).





The following table shows a breakdown of the percentage value of Pirelli Tyre purchases by type. It reveals that the largest and most significant purchasing category concerns raw materials, with an incidence on total purchases in 2013 of 60.5%, substantially in line with the figure for 2012 and on which impacted the increase in prices that characterised the year .


PERCENTAGE VALUE OF PIRELLI TYRE PURCHASES BY TYPE

  2013 2012 2011
Raw materials 60.5 58.4% 58.5%
Supplies 5.1% 4.4% 4.6%
Services 25.0% 26.5% 23.8%
Capital goods 9.4% 10.8% 13.1%
Total 100% 100% 100%


With reference to the percentages of Pirelli Tyre suppliers by type and number as at the following table, already from 2010 the consumables and services suppliers categorisation criteria had been defined. The sum of the number of operators in the two categories remains in excess of 80% of the total, even though the incidence on total purchases is significantly lower than, for example, that of raw material purchases. The fragmentation of consumables and services suppliers is clearly visible compared to the substantial concentration of raw materials purchases over a small number of operators.


PERCENTAGE OF PIRELLI TYRE SUPPLIERS BY TYPE AND NUMBER


  2013 2012 2011
Raw materials 2.6% 3.0% 2.8%
Supplies 34.6% 38.9% 40.5%
Services 51.4% 46.1% 46.2%
Capital goods 11.4% 12.0% 10.5%
Totale 100% 100% 100%

 

Last Revised: 30 Jul 2014