The search for greater synergies and closer integration among Fiat Group’s companies have been the main objectives of the "Qualitas Awards", the annual awards handed out to Fiat’s best suppliers.

The search for greater synergies and closer integration among Fiat Group’s companies have been the main objectives of the "Qualitas Awards", the annual awards handed out to Fiat’s best suppliers. In its 19th edition, the prize, starting from this year, distinguishes 60 companies from not only Fiat’s purchasing network, but also of Case New Holland (CNH), Iveco and Fiat Powertrain Technologies.

Since December 2007, the global purchases activities for the four companies have been gathered into a single organization, Fiat Group Purchasing, under the direction of Mr. Gianni Coda; with the annual volume of the businesses projected for this year being 35.5 billion euros. The same global strategy has also been applied in Fiat Group businesses in Latin America, and this area represents the second largest contribution to the consolidated revenue of the Group after the Italian operations. This position is also verified in the volume of purchases.

Combined together, Fiat Automóveis, CNH, Iveco, Fiat Powertrain Technologies and Fiat Argentina have a total budget of R$ 15 billion reais (about 5.5 billion euros, which amounts to 15.5 pct of the global volume). Since January, the coordination of these act ivies on the continent is under the direction of Mr. Osias Galantine, the new director of Purchases of Fiat Group in Latin America.

The new strategy was announced during the "Qualitas Awards" which took place last week (15th April) in the “Expocenter Norte” in São Paulo, chaired by the global CEO of Fiat Group Purchasing, Gianni Coda. The executive, who has already managed Fiat Automóveis in Latin America between 1999 and 2002, drew a panorama of the Fiat Group's main businesses across the world, highlighting the strong recovery in all of its activities, and emphasising the four main lines of the new global organisation for purchasing. These are the search for improved synergies through better management and organisational integration, the development of products in “Best Cost Countries”, increased invigoration of strategic partnerships with suppliers through long term contracts, and the "design to cost", which looks for the rationalisation and reduction of costs through the standardisation of components and platforms.

When greeting the suppliers distinguished with the prestigious "Qualitas Awards", the Fiat Group CEO for Latin America, Mr. Cledorvino Belini, mentioned that the recent application of the new global structure for purchasing in the continent has made a great contribution to the process of searching for excellence.

"The competitiveness is also the result of successful alliances. This meeting reinforces the sense of union of our supply chain, increasing opportunities and offering high quality products, with high innovative content, which guarantee our customers' satisfaction," affirmed Mr. Belini. Reinforcing the Fiat Group's commitment to business sustainability, in harmony with social development and environmental balance, Mr. Belini affirmed that this administration model presupposes "an open, transparent and cooperative relationship, as we all are members of a same ecosystem."

The new Latin American director of Purchasing Mr. Osias Galantine, also remarked on the cultural changes going on at all levels of Fiat’s administration. In his speech, he affirmed that the main objective is to become a truly global company. In relation to the new structure of purchasing, he said that the same structure adopted by the global direction of the Group was being applied in Latin America.

“Commodities groups: metals, chemicals, electric and raw materials, define the strategies and guidelines of purchases, aiming at the reduction of costs. The specific needs of each company of the Group will be assisted by its own support, especially in the product development and quality areas." Galantine went on to emphasise the importance of this change, "for the first time in Fiat’s history its strategy in relation to suppliers is unified, with an integrated team that operates businesses in all continents, which will increase the quality and services requirements; for the suppliers, this represents a great opportunity also."

In addition, the directors of purchasing for CNH, Mr. Ricardo Ribeiro, and Iveco, Mr. Lúcio Bicalho, commented on the opportunities for the production chain starting from the centralised administration of purchases. "CNH was born out of the synergy of brand leaders in the agricultural and construction segments. Our suppliers have already adapted to our productivity patterns of quality. With Fiat Purchasing, we will have a larger improvement in the relationships with our suppliers," said Mr. Ribeiro. Only in Latin America, CNH has a budget of US$ 1.2 billion. Mr. Lúcio Bicalho comented that Iveco lives during a moment of strong expansion in the market, which represents new business opportunities. He also affirmed that the new structure for purchases of the Group favours the search for greater competitiveness, for both the brand and its suppliers.

This year, the first that included suppliers across the four areas of activities, Fiat Group granted honours to four supplying companies. The big winner with "Qualitas 5 Stars" was NGK Brasil, the other companies were Visteon, Teksid and PST. Another 56 suppliers also received the "Prêmio Qualitas” award.

by Claudio Perlini in Rio de Janeiro