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Why This is Important to SGS

GRI Content: G4-DMA, G4-12

As a significant buyer of goods and services (with an approximate spend of CHF2.1 bn), SGS plays an important role in economies all over the world. As the world’s leading inspection, verification, testing and certification company, with more than 85,000 employees and operating in a network of more than 1,800 offices and laboratories around the world, we acknowledge that our various suppliers (more than 90,000 globally) play an integral role to helping us provide superior services to our clients. SGS’s supply chain includes global, regional and national sourcing and logistics. We look for suppliers who epitomize not only quality and best value for money, but also sustainability and innovation.

Our business lines have distinct and often specialized supply chains to meet customer needs, such as temperature-controlled transport and storage for the life sciences industry, or specialized movement of heavy freight for the oil & gas and automotive industries. We also make many small shipments of test samples, further adding to the complexity of our supply chain. In addition, with over 85,000 employees, our procurement of IT equipment, such as laptops and mobile phones, is considerable.

SGS3624 16 SUS Procurement Chart HR

Procurement structure:

Our procurement functions are structured at global, regional and local levels:

  • Global procurement includes all categories where suppliers are operating at a global level. SGS's category team provides services such as development of our long-term sourcing strategies and the optimization of our various sourcing processes. The team also provides the tools that underpin an efficient and best-in-class supply chain, as well as robust industry benchmarking and workshops that encourage knowledge sharing and collaboration. The categories are comprised of the following:
    • Field & Testing Equipment
    • IT & Telecoms
    • Laboratory Equipment & Supplies
    • Real Estate
    • Subcontracting
    • Supply Chain & Logistics
    • Travel and Fleet Management
    • Regional procurement platforms ensure that our regional sourcing activities are as efficient as possible, through work with regional supply bases and the deployment of regional contracts. Our regional procurement platforms cover:
      • US (for North America, including Canada and Mexico)
      • Brazil (for South and Central America)
      • South Africa (for Africa)
      • Germany (for North Central and South Europe)
      • Australia (for South East Asia and Pacific)
      • China (for China and Hong Kong, and as a global low cost sourcing platform for products)
      • Taiwan (for East Asia)
      • Western Europe, Eastern Europe and Middle East (with respective hubs, although these are yet to be determined)
    • The local procurement level operates through global or regional contracts, and is involved in sourcing from local partners

    We believe we have a responsibility to drive sustainability in our industry.

    Our responsible sourcing program is fundamental to this aim and forms a key part of our supply chain strategy. The scale of SGS’s supply chain means we can make a significant contribution to raising social and environmental standards in our supply chain.

    As a first step in our responsible sourcing program, we established the SGS Supplier Code of Conduct. This sets out how we work with our suppliers and defines the minimum requirements for responsible sourcing. We invite our suppliers to work with us to identify and develop continuous improvements.

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