Supply Management Vision

DAF aims at partnerships within the whole value chain, and bases its business processes on "total quality". The business strategy gives much attention to downstream activities, thus shifting the focus to the customers. 

This has consequences for make-buy decisions and the manner in which suppliers are involved in in-company processes.

• DAF buys products unless in-house development and/or production give DAF a competitive advantage. 
• DAF aims at suppliers who are able to deliver world-wide to the companies of the PACCAR concern. 
• There is intensive co-operation between DAF and its suppliers, and DAF aims at long-term relationships. 
• DAF is selective in choosing its suppliers. 
• DAF involves its suppliers at an early stage (from the definition phase) in new projects and developments. 

Suppliers are selected based on multiple factors, including quality, innovation, cost, financial viability, and regulatory compliance. DAF’s expectations for tier one suppliers and their sub-suppliers are clearly defined in the updated Supplier Code of Conduct, which addresses critical areas such as ethical business practices, labor and human rights, health and safety, responsible sourcing, environmental sustainability, data management, and protocols for feedback and reporting violations.

DAF’s long term supply management vision is focused on value sourcing and the strategic management of five key areas:

• Quality:
  suppliers’ production processes must conform to PACCAR’s quality requirements, drawn up in accordance with ISO and IATF standards.
• Logistics:
  to deliver new trucks (and aftermarket parts) on time to our customers, reliable shipments from suppliers are essential.
• Know How:
  to stay up to date with developments, we expect suppliers to share their technology and know- how of new products and future systems.
• Competitive Position & Total Cost:
  our suppliers are expected to submit ideas to improve products & processes that help optimize costs, quality, and functionality. 
• Continuous Improvement & Sustainability:
  working with suppliers on continuous improvement helps us produce the best quality trucks in the most efficient, cost- effective way. This leads to optimal use of resources, contributing to sustainability. 

 
Suppliers are, like all our business partners, expected to uphold the highest standards of integrity, avoid conflicts of interest, and ensure fair labor practices. This includes respecting human rights, providing safe working conditions, and prohibiting forced labor and human trafficking. Additionally, the Supplier Code of Conduct expects compliance with environmental regulations and the sustainable management of resources, including responsible sourcing of materials. Suppliers are required to implement continuous improvement programs and maintain transparency throughout the supply chain.

Conclusion

Supply Management represents our purchasing vision, which helps us to be competitive in the truck market. We have set challenging goals for ourselves and our suppliers, and we shall mobilise the necessary capacity and supporting systems to achieve these goals. We expect our suppliers to work together with us to make Supply Management a success, for instance by starting continuous improvement projects and quality projects such as Six Sigma. We will only be successful if we work together to meet the wishes and requirements of our customers. Our suppliers of today are our co-designers, co-producers, co-developers and partners of tomorrow.