Logistics and procurement
Harmonisation of IT systems in ceramics logistics
At the end of 2018, Group logistics comprised the central logistics centre for sanitary and piping systems in Pfullendorf (DE) as well as a decentralised network of 13 European distribution sites for the ceramics business.
The integration of the ceramics business into Group logistics was largely completed in 2018. For this purpose, the Geberit Logistics Operation System (GLOS) was established at all ceramics plants. GLOS is the standard system for logistics and is used to continuously improve business processes. It aims to bring about a sustained increase in competitiveness.
In connection with the OneERP project, the storage management system SAP EWM has already been successfully launched at the Pfullendorf site and in Poland. The preparatory work then followed in the reporting year for implementation at the production plants in Bromölla and Mörrum (both SE) and Ekenäs (FI). Commissioning took place as planned on 1 January 2019.
Central order processing from Pfullendorf
The logistics centre in Pfullendorf (DE) is the global hub for products from Geberit’s Sanitary Systems and Piping Systems areas. The expanded logistics centre was commissioned in the first quarter of 2017. The associated relocation of distribution of the Mapress piping range from the production plant in Langenfeld (DE) to Pfullendorf was successfully completed in 2018. Since the expanded logistics centre was commissioned, the logistics processes have stabilised at a high level. Fine-tuning of the technical facilities and processes has brought about a further increase in both productivity and quality. The targets set out in the project planning for operation of the expanded logistics centre have been met in all areas.
Using transport management synergies
Great importance is attached to central transport management as the interface between suppliers, production plants, wholesalers and transport service providers in order to enable cost- and resource-optimised transport solutions. Customers generally receive orders of sanitary technology products in a single truck delivery. This not only reduces the number of empty kilometres, it also increases truck capacity utilisation and reduces CO2 emissions (see also Strategy Green Logistics). Geberit’s key transport service providers are required to report regularly on reductions in energy consumption and emissions. In the reporting year, the implementation of Geberit processes and standards also continued in relation to transport service providers for ceramic products and bathroom furniture.
Code of Conduct for Suppliers
Structured like a network, the Corporate Purchasing department is responsible worldwide (except in the USA) for procuring raw materials, semi-finished and finished products, commercial products, and services. Besides minimising risks of downtime as well as costs, the primary purpose of comprehensive supplier management is to safeguard supplies.
All business partners and suppliers are obligated to comply with comprehensive standards. This applies to quality, socially responsible and healthy working conditions, environmental protection and the commitment to fair business practices. The basis for cooperation is the Code of Conduct for Suppliers. This Code is aligned with the principles of the United Nations Global Compact and is available in 15 languages. By the end of the reporting year, 1,470 suppliers had signed the Code. This represents over 90% of the Geberit Group’s purchasing volume.
Corporate Purchasing and Sustainability jointly ensure that these standards are upheld by conducting regular audits. The number of audits made and their content are selected with the help of a risk matrix. The goal of these audits is to check compliance with the respective national legislation and regulations in the areas of environmental protection and occupational health and safety. The audits are carried out by an independent third-party company. Appropriate measures are initiated where required. During the reporting year, five supplier audits on EHS (Environment, Health and Safety) were carried out in the area of procurement.
Supplier Integrity Line
Launched in 2017, the “Supplier Integrity Line” has now become established. The service allows suppliers to anonymously report any violations of the guidelines set out in the Code of Conduct for Suppliers by Geberit employees and by competitors. The free hotline is operated by an independent service company and is available in a total of eleven languages. Violations can also be reported online at any time via an external URL. No violations of the guidelines set out in the Code of Conduct for Suppliers were reported in 2018.