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 is clear that the most relevant and significant purchase category concerns raw materials with a weight equal to 54% of the total, down from the previous year due to lower commodity prices, particularly natural rubber.


PERCENTAGE VALUE OF PIRELLI TYRE PURCHASES BY TYPE

  2014 2013 2012
Raw materials 54% 61% 58%
Supplies 5% 5% 4%
Services 32% 25% 27%
Capital goods 9% 9% 11%


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 OF PURCHASE


  2014 2013 2012
Raw materials 3% 3% 3%
Supplies 33% 35% 39%
Services 53% 54% 46%
Capital goods 11% 11% 12%

 

Last Revised: 28 Jul 2015