Saint Gobain - Registration document 2016

4 AN EFFICIENT AND RESPONSIBLE GROUP 2. Operational excellence policies

More than 5,300 managers are trained today in the WCM program and 50% of employees of the industrial sites are involved in the application of this program. 3 months depending on the sites and allows a team to be formed and brought together around the program; priorities to be identified based on the identification of losses and an initial pilot project to be defined. The site preparation stage is essential. It may take 1 to The implementation of the pilot project constitutes the second stage of the program. This period of 6 to 9 months is a stage of application of training and of training programs deployment and the application of the methods on site from management to the operators. The WCM is then applied pillar by pillar. Regular audits make it possible to assess the maturity of the program by site according to four levels: first audit: the site has finalized the pilot stage and started ‹ application; the Bronze level confirms the end of the learning process; ‹ the Silver level is reached when 80% of the site is ‹ incorporated into the WCM program; progress. on achieving the Gold level, the site has incorporated the ‹ WCM methods and is independent to continue its Purchasing meets the needs of the Group’s industrial and distribution activities. supply chain. With a global annual amount of some €29 billion for more than 200,000 active suppliers, activities to ensure its efficiency and risks relating to the Purchasing is a key factor in the Group’s competitiveness and its organization is adapted to the specific features of its efficiency The Purchasing Department is divided into non trade purchases (€16.5 billion of purchases) and trade purchases (more than €13 billion of purchases) in order to best adapt to the specific nature of the Group’s activities. Although the Purchasing functions are based on common policies and a common base, they do not participate at the same level in the Group’s value chain: non-trade purchases are upstream to the production stage ‹ and all logistic aspects; trade purchases are downstream of the production stage. ‹ differentiated. Consequently, the organizations, strategies and objectives are A rigorous organization, a measure of 2.2.1 From continuous improvement to industrial excellence 2.1.3 47 countries, have initiated this program. They represent more Today, more than 740 industrial sites, in more than 2.2

have been audited and already more than 15% have reached the Bronze level. than 80% of the industrial sites of the Group and around 90% of the sales of the industrial Activities. Almost half of them The appropriation of this culture of operational excellence common to the Group allows greater efficiency in the exchange of good practices, and more opportunities for career mobility among the Group’s various Activities, particularly for some technical experts. extension to the WCM for optimization of the value chain of a site or an Activity. It is already producing very promising results with the first pilot projects executed in Performance Initiated in 2014, the World Class Supply Chain program is an Plastics Activities, Saint-Gobain Glass and Saint-Gobain Sekurit, mainly in Europe and in South America. Beyond the economic gains expected by logistic optimization, the World Class Supply Chain is above all a section 4.1.2.) forms part of the performance indicators monitored in the program. differentiation program with a target delivery period adapted to the customer’s wishes. Moreover, the Net Promoter Score, a tool for measuring customer satisfaction (see chapter 2, Thanks to the WCM program and its extension to the supply chain, Saint-Gobain is continuing its effort to achieve industrial preparing for Industry 4.0. to ensure the digital transformation of the factories. By appropriating the WCM program on the sites, Saint-Gobain is excellence, on all its sites throughout the world. This change of culture provides a better customer service, competitiveness and efficiency. It also favors the safety, people commitment and mobility of employees. It is also an essential prerequisite meet its economic objectives. Department with regard to competitiveness and innovation. Concerned about its performance, the Group wishes to optimize the purchases of its activities and strengthen the contribution made by the Purchasing Department in order to Beyond the specific features connected with its Activities, Saint-Gobain recognizes the major role of the Purchasing To that end, the Group has endeavored to develop the professionalism of its purchasers through training activities. A training path is open to all Group purchasers within the scope Purchasing Department, provides them with tools that enable them, and their teams, to achieve behavioral excellence in their daily activities. which is particularly important for newcomers in the of the Purchasing School. More specific training intended for trade purchasers supplements this program. This training,

PURCHASING, A COMPETITIVE CHALLENGE

2.2.2

Responsible Purchasing Policy

Suppliers Charter. It comprises three stages: The same is true for the Group’s Responsible Purchasing Policy, the purpose of which is control and reduce the environmental, social and societal risks to its supply chain. It is built on two pillars, the Purchasers Charter and the

70

SAINT-GOBAIN - REGISTRATION DOCUMENT 2016

WWW.SAINT-GOBAIN.COM