Car manufacturers Renault, Nissan and Avtovaz are to expand their joint purchasing activity in Russia.
The new joint venture, the Avtovaz-Renault-Nissan Purchasing Organization (ARNPO), will replace the Common Purchasing Organization (CPO) that was established in 2013 to handle buying for industrial equipment, powertrains and vehicles.
ARNPO will handle the work of the CPO and individual purchasing departments of the three companies in Russia and will start operating in January 2015. The organisation will handle the purchase of parts, equipment and tooling as well as indirect procurement, supplier quality and development. It also intends to apply processes established by the Renault-Nissan Purchasing Organization (RNPO) to boost the capability of the local supplier base in Russia.
ARNPO will be led by Venkatram Mamillapalle, currently purchasing vice president at Avtovaz, which manufactures the Lada brand.
Yasuhiro Yamauchi has also been named as Alliance executive vice president, purchasing and chairman and managing director of the RNPO. He suceeds Christian Vandenhende, who has been appointed executive vice president, quality and total customer satisfaction at Renault. Yamauchi’s previous role as Alliance global senior vice president, purchasing and deputy managing director of RNPO has been filled by Véronique Sarlat-Depotte.
Joint purchasing saved the Renault-Nissan Alliance €1 billion (£792 million) in 2013.