Renault: Deadbeat, According to its Suppliers

Posted on Nov 23 2013 - 9:25am by Admin

According to a study revealed yesterday on 60 major French companies Renault only 58th for the quality of its relationships with its subcontractors. PSA is better off in 48th. Renault is not well judged by its suppliers to its business relationships. PSA is doing better.

Renault-Deadbeat-According-to-its-Suppliers

Auto-Addict (with AFP)

According to a survey commissioned by the Mediation Inter-company (established by the Ministry of Productive Recovery and Growth Plus), Renault is ranked only 58th out of 60 large companies, ranked according to the quality of their relationship with their suppliers. Especially for the delay with which they pay their bills. These companies are considered more (or less …) reliable in terms of quality of the relationship and the payment terms.

For the automotive industry, it is in the top ten ranked groups – including Legrand, Schneider Electric and Dassault Aviation , which occupy the first three places – Michelin which raises above average rating (19 points more for the business relationship, 15 points higher for the time of payment). If Renault touches the bottom of the standings, PSA is best 48th in the standings, despite its cash flow problems.

A disputed classification

This classification was immediately challenged by employers’ organizations. In a statement, the MEDEF has recognized the existence of “some deplorable practices”, but recommended not to “generalize”, because he has provided “many large groups are exemplary.” According to the employers’ organization, the tensions that may exist between suppliers and outsourcers are more the result of the economic crisis and “the inability of our country to restore air companies, especially smaller ones, in tax and social security. ” Not taken into account in the ranking, he felt that the State and local governments also had “an important responsibility in this situation.”

However, this investigation has resulted in 4,000 evaluations of large companies, through individual ratings assigned by managers and financial managers of SMEs and show that, overall, 57% of large companies have extended their payment in 2013 compared to 2012, when only 5% have shortened. They are also 14% believe that the quality of the relationship with the payer has improved 23% when they are deteriorated.

Mutual Confidence Crumbles

The study is based on a definition of the quality of the customer-supplier relationship fairly comprehensive, taking into account the concept of “mutual trust”, through compliance with the terms of the contract (orders, deliveries, price fixing, invoicing …), balanced performance conditions, compliance with payment deadlines and the quality of dialogue, explain Mediation Inter-company under the Ministry of Productive Recovery, and the association of contractors Growth Plus.

Interviewed on BFM Business on this classification, the inter-company ombudsman Pierre Pelouzet said Thursday that it was “the expression of SMEs”, aware of the sensitivity of a nominal ranking of major companies. “The message is a little more nuanced than ranking. Classification is to sound the alarm behind must all bosses, CFOs, all purchasing managers mobilize and spend the right message, “he he said.

Study Against Study

For its part, SME Pact, an association of large companies who are committed to promote French SMEs cited another study, by his care providers from 1433 and published in May. This study showed that 68% of them were satisfied with their relationships with key accounts 56 members. “In particular, 78% of SMEs were satisfied with their payment,” she says, in total contradiction with the study published Thursday.

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