APC 2013 Annual Report Download - page 40

1OVERVIEW OF THE GROUP'S STRATEGY, MARKETS AND BUSINESSES
ORGANIZATIONAL SIMPLICITY AND EFFICIENCY
The digitization of the supply chain
Kinaxis will enable the “digitization” of industrial planning and
extend the scope. This technology facilitates interaction loops
In 2013, Schneider Electric put emphasis on digitization as a way between the different functions and improves our responsiveness
to accelerate and intensify its transformation. to customers as well as significantly reduces the value of fixed
assets in inventory. Finally, the development of new features
For the supply chain, this approach aims to synchronize suppliers
tailored to each customer segment on our targeted computer
and plants through distribution centers and carriers to improve
systems (of the supply chain) will be supported by a strengthened
service to customers. Many programs have been launched in order
IT convergence plan.
to offer new features and improve the responsiveness in relation to
market demand supported by new technologies. This digitization of the supply chain fully meets the priorities of the
Group's industrial strategy targeting first customer satisfaction
Supply chain optimization will benefit from the flow model,
while reducing costs for increasing responsiveness and reducing
combined with the integration of the IT systems of our logistics
capital employed.
partners with “Cloud” technology. Similarly, a partnership with
Purchasing: selection and internationalization 6.4
Purchasing corresponds to around 50% of revenue and plays a includes multinationals as well as small, medium and
crucial role in the Group’s technical and business performance. As intermediatesized companies.
part of its program to optimize Purchasing, the Group has sought
Suppliers are selected for the quality of their products and
to source a significant portion of its purchases from the
services, their adherence to delivery deadlines, their
top-performing suppliers (“recommended” suppliers) and aims to
competitiveness, their expertise, their innovative capacity and
increase local sourcing in the new economies to more than50%.
their commitment to corporate social responsibility (CSR). As a
signatory to the United Nations’ Global Compact and in view of
Schneider Electric primarily purchases prefabricated components,
its recommendation of ISO26000 to its principal suppliers,
raw materials (silver, copper, aluminum, steel and plastics),
Schneider Electric encourages its suppliers to join this
electronic and electrical products and services. The supplier list
sustainable development process and its continuous
improvement.
38 2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC