For Suppliers
Specific Expectations for New Suppliers
Establishing a Relationship with Trane
Trane has a rigorous process for entering into relationships with suppliers. Our process is designed to evaluate your capabilities and match them against our business needs. Elements of this process include:
- Financial Disclosure You may be asked to provide, among other documents, current financial statements, current Dun and Bradstreet reports, etc. Trane reserves the right to qualify and verify any supplier's financial stability.
- Supplier Evaluation Scorecard Supplier must be prepared to mutually agree with Trane on a supplier evaluation scorecard.
- Security Questionnaire for Service Providers - Good business practice and PCI security regulations require that Trane implement a comprehensive information security program to:
- Ensure the security and confidentiality of sensitive information.
- Protect against any anticipated threats or hazards to the security or integrity of such information.
- Protect against unauthorized access to or use of such information that could result in substantial harm or inconvenience to Trane, Trane employees, or Trane customers.
- Six Sigma Approach -- Trane is a Six Sigma company. We expect our vendors to be knowledgeable about the practices and methodologies associated to embrace these concepts.
A Partnership Rooted in Accountability
We expect our business partners to work with us to ensure a productive relationship. You must, therefore, agree to:
- Metrics, Scorecard, Reporting Suppliers are required to monitor and report performance, problem response and resolution, productivity improvements and other metrics as requested on a quarterly basis or as agreed to in writing. Buyer and Supplier will establish targets for improvement for each parameter.
- Productivity - Supplier shall use its best efforts to identify and implement cost reduction opportunities amounting to at least 6% productivity improvement per year by sector without sacrificing quality. Supplier agrees to aggressively seek out, notify and advise Buyer of cost reduction opportunities. In order to establish an effective system to identify and achieve productivity and cost reduction objectives, Supplier must submit a quarterly productivity report to Buyer's designated commodity team members
- Standard Non-Disclosure Agreement Suppliers will be required to sign a non-disclosure agreement prior to any business discussions
- Bailment -- If Trane owned tooling or equipment (Equipment) will be required to manufacture parts at the supplier's facility, the supplier will be required to sign a Bailment Agreement. This document is a legally binding acknowledgement that Trane owns the Equipment and may remove it, and the supplier will properly maintain the Equipment while in its possession.
- Delivery terms will be specified in any agreement we sign with you.
- IRS W-9 Form -- Trane requires that all new suppliers of goods and services submit a completed IRS W-9 form (can provide template if necessary). The most current form available from the IRS must be used. This form includes information necessary to determine withholding status and requires the inclusion of a tax identification number (TIN), or social security number (SSN).
Process for Financial Exchanges
The following are conditions and terms governing financial transactions with our vendors:
- Payment Terms -- Trane's payment terms are 75 days from invoice date. Inquiries regarding payment status can be made by calling (239) 277-7400. We will not provide payment status for any invoice aged less than 75 days.
- Preferred Payment Method -- Electronic Funds Transfer (EFT) is the preferred method of payment for all Trane suppliers (including suppliers for our American Standard HVAC brand). Instead of receiving checks, you will receive an automatic deposit into your checking account. EFT is of great benefit to you the supplier, as mail float is eliminated and funds are transferred immediately to your account on the date payment is due.
- Transactions Less than $1,500 (USD) -- As a general rule, all transactions for goods/services $1,500 or less will be paid using the Citi Diner's Club MasterCard Corporate Purchase card. We require that you have capabilities of transmitting transaction details using Level 2 or Level 3 data. This ensures that proper sales & use tax details are transmitted and can be properly accrued.
- Transactions Greater than $1,500 (USD) -- Invoices over $1,500 will require a purchase order and vendor is required to note purchase order number on packing list and invoices
