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 emerges that the largest and most significant purchasing category concerns raw materials, with an incidence on total purchases in 2012 of 58.40%, substantially in line with the figure for 2011 and higher than in 2010 due to the increase in prices that characterized evolution in 2011 compared to 2010.


PERCENTAGE VALUE OF PIRELLI TYRE PURCHASES BY TYPE

  2012 2011 2010
Raw materials 58.4% 58.5% 55.4%
Supplies 4.4% 4.6% 4.6%
Services 26.5% 23.8% 28.7%
Capital goods 10.8% 13.1% 11.4%


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


  2012 2011 2010
Raw materials 3% 2.8% 3%
Supplies 38.9% 40.5% 38.9%
Services 46.1% 46.2% 47.3%
Capital goods 12% 10.5% 10.8%

 

Last Revised: 12 Jul 2013