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  • Suppliers
Novelis Procurement

Our goal is to make measurable and meaningful contributions toward the organization’s performance. We achieve this through partnership and collaboration with our suppliers, driving value and profitably growing together.

We recognize that our suppliers have a profound impact on the organization, across all areas of operations, including production, engineering, maintenance and services. Strong supplier relationships enable Novelis to consistently meet and exceed our customer expectations.

Rules of Engagement

World-class Procurement has moved beyond the traditional view that it exists simply to obtain quality goods and services on time and in full.  The processes/policies listed below detail how Novelis and our external suppliers can work together to achieve the best results.

Quality

The goal of the Novelis Supplier Quality Relationship Management (SQRM) program is to establish two-way, mutually beneficial relationships with Suppliers that identify and mitigate risks, promote excellent quality, improve performance and add value through Supplier Enabled Innovation (SEI). The Novelis SQRM framework is comprised of eight modules that represent the Supplier lifecycle. (see figure below) Each module outlines:

Novelis Supplier Quality Relationship Management (SQRM) Program


Click on each segment for more information.

SQRM Framework – Section Definitions

The Novelis SQRM framework is comprised of eight modules that represent the Supplier lifecycle.

SQRM Framework – Section Definitions
Supplier Innovation Supplier Award Supplier Information Management Supplier Selection & Qualification Supplier Performance Monitoring Supplier Stratification Supplier Risk Management Supplier Development SQRM Framework – Section Definitions

Supplier Innovation

Why: Collaborate with suppliers to leverage capabilities that generate increased value through process/product improvements.

 

How: Create a forum and conduct periodic events with suppliers & major stakeholders to foster and prioritize idea generation.

 

What: Process to effectively encourage, evaluate and implement value added innovation and Value Analysis/Value Engineering (VAVE) ideas from Novelis suppliers.

Supplier Award

Why: To promote strengthened supplier relationships through formal acknowledgement and recognition of supplier excellence. Goal is for Novelis to be Customer of Choice.

 

How: Establish a program with global governance & consistency with well-defined categories and criteria.

 

What: A supplier recognition program resulting in rewarding suppliers who excel in various performance criteria established by Novelis.

Supplier Information Management

Why: To facilitate a collaborative relationship between suppliers and Novelis. To provide supplier support and accountable to meet or exceed Novelis expectations

 

How: By ensuring the information needed to be a Novelis supplier is available and maintained on Novelis.com.

 

What: Clearly inform suppliers about the expectations including standards and requirements of being a Novelis supplier.

Supplier Selection & Qualification

Why: To provide a consistent & standardized process used throughout the organization for the selection of suppliers to ensure that quality standards as well as statutory and regulatory requirements along the supply chain are met.

 

How: Define standardized criteria and processes to assess & evaluate the capabilities of suppliers.

 

What: Process of selecting suppliers and ensuring they can provide products and/or services that consistently meet Novelis requirements.

Supplier Performance Monitoring

Why: To set expectations, drive supplier improvements & reward exceptional supplier performance

 

How: Establish a standardized measurement process, consisting of defined KPIs and reporting capabilities to track supplier performance

 

What: Systematically measuring supplier performance based on defined KPIs including safety, quality, delivery, cost and more.

Supplier Stratification

Why: Helps to prioritize & focus on how Novelis will manage supplier relationships (i.e. identifying right opportunities, reviewing relationships, measuring performance, setting action plans, optimize supply base, etc.)

 

How: Suppliers can be classified on the basis of spend, industry, dependency, innovation, criticality, etc.

 

What: Grouping of suppliers based on one or more dimensions (i.e. spend, criticality, etc.) that will ultimately help define the sourcing strategy.

Supplier Risk Management

Why: To identify Novelis’ potential exposure to risks associated with supplier vulnerabilities in operations and finances which may cause costly supply chain interruptions.

 

How: Use high Risk Priority Number (RPN) calculation to rank the suppliers and determine who potentially presents a higher risk and drive collaborative risk mitigation plans.

 

What: Assess potential risks in the supply base and develop mitigation plans and incorporate into the sourcing strategy.

Supplier Development

Why: To develop and strengthen supplier relationships and performance to support the Focused 5.

 

How: Identify suppliers that qualify for further development and invest resources (manpower, expertise, tools, budget) for the execution of development projects.

 

What: Program or initiatives with select suppliers to improve their capabilities.

SQRM Framework – Section Definitions

Why: To identify Novelis’ potential exposure to risks associated with supplier vulnerabilities in operations and finances which may cause costly supply chain interruptions.

 

How: Use high Risk Priority Number (RPN) calculation to rank the suppliers and determine who potentially presents a higher risk and drive collaborative risk mitigation plans.

 

What: Assess potential risks in the supply base and develop mitigation plans and incorporate into the sourcing strategy.

Safety

Novelis is committed to providing safe working conditions for all of our employees, contractors and visitors. As part of this commitment, Novelis has established seven critical procedures, or Safety Absolutes, to help protect against serious injury. Additionally, the Novelis Contractor Safety Process, in collaboration with Avetta, the leading provider of supply chain risk management software, ensures that contractors stay safe while working on our premises.

Sustainability

Novelis is driven by its purpose to shape a sustainable world together and our Procurement team, along with our suppliers around the world, are critical to making that happen through establishing business relationships built on ethics and mutual respect.  With that mutual respect in place, we intend to build on the sustainability performance of not only Novelis, but also the entire aluminum industry.

Our ambition is to be the world’s leading provider of low-carbon, sustainable aluminum solutions that advance our business, industry and society toward the benefits of a circular economy. We work alongside our customers to create innovative, sustainable solutions and processes.

Therefore, our focus is not only to find new ways to reduce our impact but also to discover and scale the benefits of a low-carbon and circular approach for our business and the partners along our value chain.

To achieve this, we will need an inclusive and diverse workforce and supply chain to develop innovative solutions for the benefit of society.  Diversity of backgrounds, expertise, and perspectives will help ensure we reach the ambitious goals we have set and underpin the growth of our business and the strength of our culture. Continuing to build this diversity across a variety of dimensions – including gender, ethnic, and socioeconomic diversity – will drive innovation, expand the voices and skills that propel our business, and attract the highest-caliber talent.

Visit Novelis Sustainability

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