Following
speculation over the weekend, Renault and Nissan this morning confirmed that they
intend to set up a joint purchasing organisation “to achieve the synergy objectives
of the Alliance”.
The companies say the joint purchasing organisation, to be established on April
1, will provide additional savings of up to five percent on common projects,
starting with the C-platform on which the next generation Renault Megane and
new Nissan models will be built from 2002.
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This first Alliance joint organisation will initially handle about 30 percent
of Renault and Nissan’s annual global purchasing turnover and further expansion
to 70 percent is expected.
From April 1, the Renault Nissan Purchasing Organisation will take charge of
“17 families of commodities” including powertrain components, vehicle parts,
raw materials and services. These currently account for about 30 percent of
the two companies’ global annual purchasing turnover of $US14.5 billion. Combined
purchases are currently worth around $US50 billion worldwide.
The new joint organisation will operate in Europe, Japan and the United States
with staff from both companies.
Jean-Baptiste Duzan, head of Renault’s purchasing department, will be appointed
chairman and managing director of the new joint organisation and Itaru Koeda,
head of Nissan purchasing, will become vice chairman. Hiroto Saikawa, general
manager of Nissan’s purchasing strategy department, will be executive general
manager of the joint venture.
Activities will be divided into three areas, under the responsibility of a
general manager: powertrains components, vehicle parts and service & material.
The three general managers will be supported by an organisation consisting
of 17 global supplier account managers (GSAM) and 17 deputy GSAMs.
Each group will have a GSAM in either Tokyo or Paris whose deputy will be in
the other city. Each GSAM and his deputy will be in charge of a specific commodity
and will be responsible for developing the sourcing strategy, choosing suppliers
and meeting the quality, cost and delivery objectives of the two companies.
The new Renault Nissan purchasing organisation expects to obtain greater discounts
from global suppliers through bigger volume and faster decision-making.
“Thanks to this single organisation, Renault and Nissan will be able to speak
with ‘one voice’ to suppliers everywhere in the world, providing more consistent
and effective results,” Nissan and Renault said in a statement.
“Moreover, it will allow us to share and implement the best purchasing practices
for cost management, quality and delivery, while enhancing standardisation to
provide further scale effect.”
The Renault Nissan purchasing organisation will report to the heads of purchasing
in both companies and the effectiveness of the new operation will be regularly
reported to the Global Alliance Committee (GAC).
At launch, the new joint venture company will have a total staff of less than
100 people who will all come from current Renault and Nissan purchasing operations.
Staff numbers will not change as a result of the joint venture.
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