Logistics and procurement
Harmonisation of it systems in ceramics logistics
At the end of 2019, Group logistics comprised the central logistics centre for installation and flushing systems and piping systems in Pfullendorf (DE) as well as a decentralised network of 13 European distribution sites for bathroom products.
The integration of the ceramics business into Group logistics was completed in 2019. Thanks to the Geberit Logistics Operation System (GLOS) – a system used for the continuous improvement of business processes – all logistics sites for ceramic sanitary appliances and furniture were able to achieve further improvements in process quality.
In connection with the OneERP project – where the IT systems and processes are adjusted to the Group ERP standard – the storage management system SAP EWM was also successfully launched in Poland, Sweden and Finland in 2019, following on from the Pfullendorf site the previous year.
Impacts of the brand switch
The major challenges posed by the brand switch from a logistics point of view were to manage old inventories optimally, to be prepared for the switch itself, and to still be able to meet market demands at all times. Thanks to coordinated processes and smooth cooperation between production, logistics and sales, it was possible to ensure that bottlenecks did not occur in the markets at any time during the switchover process.
Synergies in transport management
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.
Compliance with code of conduct for suppliers checked
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 as well as 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. As of the end of the reporting year, a large majority of suppliers as measured in terms of purchasing volumes had signed the Code.
Corporate Purchasing and Sustainability jointly ensure that the standards found in the Code of Conduct are upheld by conducting regular EHS (Environment, Health and Safety) 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 also 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, four external audits on EHS were carried out at suppliers in the area of procurement.
Supplier integrity line
Introduced in 2017, the Supplier Integrity Line from Geberit 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 hotline is free of charge for users and is operated by an independent service company in a total of eleven languages. Violations can also be reported online via an external URL. No violations of the guidelines set out in the Code of Conduct for Suppliers were reported in 2019.
