Saint Gobain - Registration document 2016

4 AN EFFICIENT AND RESPONSIBLE GROUP 2. Operational excellence policies

2.2.3

Purchases based on the competitiveness factor

“Niche” suppliers who contribute particular products that are essential for the product mix of a region. This categorization constitutes stage 1 of a process of concentrating trade purchases among a certain number of loyal, innovating partners capable of anchoring their activities over time while respecting the environment, offering quality activities, allowing the latter to measure and understand how he is positioned within the markets in which he is active. Finally, an action plan is drawn up jointly in order to improve the quality of the local partnership. the Building Distribution Sector and the partner have joint teams, CSR and digital strategy. A report is then drawn up, including the data collected from all the countries in which to the annual Partnership Analysis. Every year, all the Business Units of the Building Distribution Sector evaluate the partners with whom they are working based on seven standard criteria: trade, marketing, logistics, purchases, suppliers selected to provide the best products at the best price with the best service to satisfy customers. Optimization of the supplier portfolio is a priority objective which, following listing, is reflected in personalized support for partners thanks products at a competitive price, supporting brands in sales and advice, providing an effective logistic network and being profitable. This measure results in the listing of the best The Building Distribution Category Managers form a community of more than 800 employees. They are responsible for the management of one or more supplier portfolios. This community is guided by three authorities with program has been developed in four languages, making it accessible to the highest possible number of employees. strengthen this community and its skills. It defines the purchasing and category management strategy and promotes good practices. An e-learning version of this provides the opportunity to take stock of the development of the markets, to present the development of the division and to exchange good practices. Finally, a training named the Purchasing Excellence Program, makes it possible to strategy in the brands; and, finally, the European market meetings define common action plans with partners. The 150 representatives of this community meet once a year at the time of the Global Category Committee meeting which establishes the strategy; the Purchasing Committee meets four times a year, passes on and leads the Purchasing well-defined roles: the Sector Management Committee

Non-trade purchases a)

services, etc.). production purchases, investment purchases, transport purchases (on sales and on supplies), energy purchases and general purchases (general expenses, non-production Non-trade purchases are divided into five overall families: The high number of non-trade suppliers reflects the great diversity of Saint-Gobain’s activities. and sites. 800 professional purchasers, trained in purchasing practices based on the various categories of purchases and positioned within the various levels of the Saint-Gobain organization: Group, General Delegations, Activities, countries, companies The non-trade purchases rely on a community of more than recognized as a key factor of the Group’s competitiveness and innovation. A specific leadership program has been developed, World Class Purchasing (WCP), in order to strengthen the industry and improve the contribution made operates at the service of the Group’s operations and is This collaborative and professional community of purchasers by the Purchasing Department to Saint-Gobain’s performance, particularly in the field of responsible purchasing. throughout their path. brands and entities of the Building Distribution Sector with a view to meeting and serving customer requirements Trade purchases are purchases of products made by the The Building Distribution supplier portfolio comprises 26,000 suppliers from more than 50 countries distributed over 15 markets, reflecting the various markets of customers of the suppliers on whom the Sector brands rely nationally; and the Building Distribution Sector brands. An annual segmentation of purchases makes it possible to identify the “Strategic Partner” suppliers with whom a strong international partnership is built year after year; the “National Strategic” Trade purchases b)

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016

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