Supply Chain of Renault

Topics: Renault, Automobile, Social responsibility Pages: 8 (2175 words) Published: November 2, 2011
Supply chain of Renault

When we look at the supply chain of Renault it does not differ much from other car manufacturers. The making of a car starts with the design of the chassis, which is done by the designing department of Renault. When the design is approved, a concept car must be produced to check the feasibility of the car. When the concept car has proven feasible the real process in the supply chain begins. Renaults owns plants where the certain car is produced. In order to manufacture the car Renault needs suppliers. This is the first part of the supply chain of Renault. When we take a closer look at the suppliers in the supply chain we can divide this in raw materials, standardisers, component specialists and integrators.

Raw material supplier supplies for example Steel banks, Aluminum ingots and Polymer pellets. This supplier can operate on a local, regional and global level. Standardisers are suppliers that deliver for example tires or electronic systems for the car. Their market presence is on a global level. Component specialists supply stampings, injection moldings or other engineering components for the car. Their market presence is also on a global scale as far as the first line of producers, after that the 2nd and 3rd line are present on a regional and local level. Integrators are suppliers who deliver interiors, doors and chasis. They operate on a global level (Kumar & Veloso, 2002).

These are the most important suppliers on left hand of the supply chain. All these supplies are ordered and shipped to the plants of Renault. This is the second part in the supply chain of Renault. The plants of Renault are located in different countries in Europe including the plant of Dacia, which is also owned and produced by Renault. The different locations of plants are spread over France, Romenia, Slovenia, Spain and Turkey (Eurofound, 2007).

When we move further down the chain, after the cars are manufactured they have to be distributed to the importer. This is the central location where all cars of Renault will go before they are delivered to the next distributor/ customer, which are the local car dealers of Renault. The dealer sells the car and makes sure the car is delivery ready to the final part of the chain, which are the consumers throughout the country.


In 2009 Renault has set up the “DRSE”, which is the department of Renault which is responsible for all the corporate social responsibility aspects of the company. The department is responsible for acknowledging the responsibilities and commitments towards employees, customers and the planet, but also for the dialogue and engagement of stakeholders (Renault, 2011).

We have identified the following stakeholders for Renault

Insitution & associations
-Local authorities
-Trade Unions


Social groups

-Former employees
-Present employees

-Consumer protection
-Human rights

Capital markets


We think that the most important stakeholders among the Renault Group’s supply chain are as follows. In first place we have suppliers at the beginning of the supply chain. The suppliers of Renault must abide by the standards Renault set in “Declaration of fundamental social rights.” This document addresses important issues such as child labour and health and safety for example. Renault has taken different measures to control for these issues such as external audits and assessment criteria for supplier sites for example. Furthermore Renault requires suppliers to follow the environmental legislation (Renault 2011).

The supplier stake in the company is in-time payment, reasonable purchases. Their power is low because mostly it is a high...
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