As a purpose-led company, we have the responsibility to bring safe, sustainable, reliable, and connected energy to our customers, so the supply chain plays an essential role now more than ever. With our digitization efforts, our supply chain continues to grow smarter and enables us to understand how we must tailor our offerings to meet customers’ needs and achieve our purpose.
We have built a strong foundation of tailored supply chain capability for our customers. This approach differentiates Schneider Electric in the marketplace, and we are poised to support the more demanding business environments and critical needs of our customers.
Tailored Supply Chain 2.0
Schneider Electric will continue to evolve its supply chain strategy to new heights with a plan that is designed to do more for customers. Five supply chain value propositions guide our success in serving the needs of our customers’ dominant buying behaviors.
Collaborative: A supply chain for customers who value reliability and trustworthiness
Lean: A supply chain for customers who are price sensitive and want efficiency and reliability
Agile: A supply chain for customers who are demanding, unpredictable, and expect speed
Project-driven: A supply chain for customers who are time-to-market sensitive to project schedules
Fully Flexible: A supply chain that will be deployed in crisis environments where speed and innovation are paramount
We continue to improve the speed and responsiveness of the supply chain through a focus on specific initiatives, including:
Reducing end-to-end customer lead times
Improving the time-to-market for new products
Ensuring special care units continue to meet the needs for small enterprises
Progress was made on planning maturity, network optimization, footprint transformation, and accelerating the next wave of customer process capabilities to improve the delivery experience for customers.
We are committed to a customer-centric supply chain that is green, connected, and sustainabile.
Citing strides made with our supply chain transformation, Gartner®, the world’s leading information technology research and advisory company, announced that Schneider Electric jumped 16 places to the No. 18 position in the firm’s 2016 Supply Chain Top 25 ranking. Gartner® annually recognizes companies that best exemplify supply chain excellence. It elevated our global ranking based on increasing opinion poll vote sentiment and scoring 10 of 10 for CSR. Further, the firm recognized us for moving from decentralized supply chains supporting an extremely diverse customer base to one that is tailored to align with customer buying behaviors and requirements.
Schneider Electric works for sectors that account for the majority of global energy consumption and its corresponding CO2. We are especially committed to making sure our own products and solutions help reduce both energy use and CO2 emissions — from design to manufacturing to shipping and deployment to products’ end of life.
When we share our sustainable development vision with suppliers, we place customers at the center of this message. This approach enables us to improve the customer experience, increase profitability, and optimize cash consumption. Schneider Electric’s tailored supply chain is mindful of the diverse practices, standards, and values of the 100+ countries in which we’re present.
We have set the ambitious target to have 100% of our “recommended” suppliers in line with the guidelines of ISO 26000 by 2017.
We drive sustainability at all levels. Schneider Electric is one of the
first companies to start measuring our suppliers on sustainable development requiring visibility to their sustainability commitments. Today, we have stringent sustainable development criteria embedded in our suppliers’ evaluation and selection process. We will not award our business to suppliers that do not meet our minimum criteria levels.
Supplier Guide Book
Our Supplier Guide Book helps selected suppliers know where we stand at all times, even in an ever-changing marketplace. This charter includes sustainable development expectations related to health and safety, human rights, ethics, and the environment. This approach is strengthened by the General Purchasing Terms and Conditions to which all Schneider Electric suppliers must conform.
In 2016, we have made some evolution. It now helps to explain to our partners how to work with Schneider Electric.
Schneider Electric Supplier Quality Management
We’ve integrated a sustainable purchases methodology in the retention of our suppliers as well as selection of new ones. Within Schneider Electric Supplier Quality Management, qualification is based on an evaluation questionnaire combined with on-site audits by Schneider Electric quality specialists. The questionnaire includes a specific section on the environment and sustainable development.
Responsible and sustainable supplier relations
Supplier relationships drive our supply chain success. The French Ministry for the Economy, Industrial Renewal and Digital Affairs has taken note of our efforts. With the Ministry’s “Responsible Supplier Relations” label, Schneider Electric’s suppliers can be assured of the company’s commitment to responsible purchasing. This helps to drive long-term relationships, trust, and a win-win proposition for our suppliers and Schneider Electric.
Suppliers as strategic partners
At the fifth annual Global Supplier Day, held in September 2016 in Hong Kong, Schneider Electric shared its ambition to innovate at every level. We welcomed 120 preferred suppliers from 25 countries. The themes were quality, innovation, and competitive partnership. Attendees participated in numerous demonstrations, presentations, panel discussions, workshops, and an innovation exhibition.
Global Supplier Day provides us with an opportunity to describe Schneider Electric’s ambition to drive innovation at every level through connected energy management and automation technologies. We also discussed our expectations in terms of innovation, performance, and quality of service to enable our suppliers to become truly strategic partners in serving our customers and Schneider Electric’s growth. We are proud to acknowledge the exceptional level of service provided by our top partners.