Logistics solutions that cater to customer needs
The integrated logistics of Geberit enables optimum closeness to customers and responds to customer needs – such as delivery type and frequency – on an individual basis. As the interface between plants, markets and transport service providers, Transport Management coordinates the activities in question and facilitates intelligent and resource-efficient transport solutions; for example, by enabling transport runs between plants to be linked with deliveries to customers. This reduces the number of empty kilometers and increases truck capacity utilization.
A cooperation is in place with six main transport service providers for land transport in Europe. These service providers regularly report to Geberit on their quality and environmental management systems – including the reduction of energy consumption and emissions. The Euro 6 emission standard has been implemented for all new truck purchases made by the service providers since 2014. Overall, the share of Euro 5 vehicles was 83% (previous year 87%), with the share of Euro 6 vehicles already at 8% (previous year 3%). In 2014, the transport volume increased by 2.5% to 181.0 million ton-kilometers (previous year 176.6 million ton-kilometers), resulting in an increase in CO2 emissions of 2.9% to 28,282 metric tons (previous year 27,483 metric tons).
The pilot project with an environmentally friendly, natural gas truck running between Pfullendorf and Rapperswil-Jona went well during the reporting year. The pioneering project, which is being conducted in collaboration with a transport service provider and a truck manufacturer, is now being evaluated in detail. This will include an assessment of whether it can be transferred to other routes.
Supplier management minimizes risks
The centrally organized Purchasing department looks after the procurement of raw materials as well as semi-finished and finished products for all production plants worldwide (except the USA). All Geberit’s business partners and suppliers are obligated to maintain comprehensive standards. This applies to quality, socially responsible and healthy working conditions as well as environmental protection and the commitment to fair business practices. The basis for the cooperation is the Code of Conduct for Suppliers. This Code is aligned with the principles of the United Nations Global Compact and is binding for every new supplier. Up to the end of 2014, 728 suppliers had signed the Code (previous year 701 suppliers). This equates to over 95% of the total procurement value.
When evaluating suppliers, Geberit strives to achieve the greatest possible degree of transparency. All new and existing partners are thus assessed by means of standardized processes and according to the same criteria: company as a whole, quality and sustainability, price, procurement chain and delivery reliability, production and technology. As a rule, the selection of suppliers must include a quality audit covering clarification on environmental, health and safety issues. Where an audit reveals inconsistencies in the area of sustainability, an additional, in-depth audit is conducted.
Overall, the risk assessment is based on the division into risk classes – depending on the production location (country) and production processes at the supplier. To ensure neutrality and the expertise required for the audits, Geberit works with external partners. Any shortcomings exposed by audits give rise to sanctions. As a rule, a deadline is imposed for remedy of the situation.
Comprehensive supplier management minimizes risks and costs. Thanks to digitization, billing too was efficient and already over 60% paperless in 2014.