Lifecycle overview
Within Flowserve, the supply chain function covers everything associated to the procurement of third-party goods and services, from strategic initiatives to tactical transactions. These activities all form part of what we call the Flowserve Supply Chain Lifecycle and are managed across five different teams within our supply chain function.
Category Management
The Category Management team is responsible for designing the medium- to long-term strategic direction for all our major category groups.
This primarily includes the design of our supply chain from capacity and capability perspectives as well as any determination of the need to amend to fit Flowserve’s strategic direction accordingly. The Category Management team is also responsible for deciding when and where new suppliers are required.
Supplier Performance
The Supplier Performance group is responsible for the qualification and sustainment of our suppliers from quality and delivery perspectives, primarily associated to direct materials. This includes monitoring and communicating with suppliers regarding their ability to fulfill Flowserve’s needs. Additionally, the group is responsible for managing the lifecycle process, from onboarding to offboarding, with suppliers.
Sourcing
Our Global Sourcing function is responsible for leading all the major sourcing activities across the business – from strategic sourcing events to annual price list negotiations.
It also houses our dedicated indirect sourcing and project sourcing teams.
Our sourcing process is a determination of performance, cost, risk and compliance that ensures the highest total value for Flowserve.
Procurement
Each Flowserve site has their own dedicated, local supply chain team primarily focused on executing the procure-to-pay process. This involves non-contract spot sourcing and the purchase order management process to ensure all materials and services required for production and assembly are available on time. These site teams leverage the global category strategies, qualified supplier base and commercial agreements to execute their procurement activities.
Logistics
The Logistics group is responsible for the strategic and tactical elements of our global transportation network, including carrier performance management. This covers supplier inbound and customer outbound freight as well as any inter-company shipments.
