APC 2015 Annual Report Download - page 38

2015 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC36
OVERVIEW OF THE GROUP’S STRATEGY, MARKETS AND BUSINESSES
1ORGANIZATIONAL SIMPLICITY ANDEFFICIENCY
6.3 Purchasing: selection andinternationalization
Purchasing corresponds to around 50% of revenue and plays a
crucial role in the Group’s technical and business performance.
As part of the new company program to optimize Purchasing, the
Group is continuing to pursue its plan, launched several years ago,
to seek to source its purchases from the top-performing suppliers
(«recommended» suppliers) and aims to increase local sourcing
in the new economies to more than 50%. The Group is rolling out
the « Purchasing Excellence System » with a view to involving
suppliers, as a component in the ‘Complete Logistics Chain’, in the
achievement of our performance objectives focused on customer
satisfaction.
Schneider Electric primarily purchases prefabricated components,
raw materials (silver, copper, aluminum, steel and plastics), electronic
and electrical products and services. The diverse supplier list
includes multinationals as well as small, medium and intermediate
sized companies.
Suppliers are selected for the quality of their products and services,
their adherence to delivery deadlines, their competitiveness, their
innovative capacity and their commitment to corporate social
responsibility (CSR). As a participant of the UN Global Compact,
Schneider Electric encourages its main suppliers to contribute to
its sustainable development initiative according to the guidelines
of standard ISO 26000, through ongoing improvement in the level
required (to achieve 100% «recommended» suppliers by 2017).
•i mprovement of the overall performance of the equipment
logistics chain;
•i nvolvement of preferred suppliers in all aspects of this
transformation approach;
•c ontinued optimization of the entire industrial system to offer
customized customer service;
•f ocus on excellence of the logistics chain for growth activities;
•m anagement of the release of new product offerings.