3 An efficient and responsible Group Achieve excellence in operations SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 97 Purchasing and logistics optimization 3.2 Purchases 3.2.1 Purchasing is a key factor in the Group’s competitiveness and its organization is adapted to the specific features of its activities and the countries where it is located to ensure its efficiency and manage supply chain risks. Purchasing meets the needs of the Group’s manufacturing and distribution activities. Although the Purchasing functions are based on shared policies and a common base, specifically the implementation of the Responsible Purchasing policy (see this chapter, section 1.4), they do not operate at the same level of the Saint-Gobain value chain: non-trade purchases: these relate to purchases ■ upstream of the production stage (raw materials, energy, chemicals, components, etc.), purchases of equipment used for production (machinery, civil engineering, etc.), all logistics expenses, as well as purchases of support functions (IT, marketing, human resources, EHS, communication, finance, audit, etc.); trade purchases: purchasing downstream of the ■ production to ensure the offerings of the Group’s distribution brands. Saint-Gobain’s purchasing policy favors the establishment of medium- and long-term contracts and partnerships with its suppliers. In the context of the coronavirus crisis, the Group’s buyers acted responsibly: the payment terms of suppliers such as VSEs and SMEs were not modified. The Group has endeavored to develop the professionalism of its buyers through training activities. A training path is open to all Group's buyers within the scope of the Purchasing School. More specific training courses intended for trade buyers complete this program. These training courses, which are particularly important for newcomers in the Purchasing Department, provide them with tools that enable them, and their teams, to achieve behavioral excellence in their daily activities. Beyond the specific features connected with its activities, Saint-Gobain recognizes the major role the Purchasing Department plays in competitiveness, innovation and sustainable performance. Buyers are especially committed to the 2030 CO2 roadmap, both for the control and the reduction of scope 3 emissions and for the development of renewable or carbon-free energy purchases. geograpical area. This implies the management of a large number of suppliers. More than 210,000 companies supply the sites, of which more than 15,000 account for 80% of the Group purchases. Trading purchases are more concentrated around more than 12,000 suppliers. The supply chain of industrial sites is mostly local. Less than 5% of a region's puchases are made outside its Logistics optimization 3.2.2 Representing for more than a third of its scope 3 CO2 emissions, optimizing logistics both upstream and downstream of the value chain, is a key factor in reducing Saint-Gobain’s carbon impact and achieving the target of a 16% reduction in scope 3 emissions by 2030. The Group has develop "Industry 4.0" and "Supply Chain 4.0" digital programs to optimize transportations. Whether for purchases or for customer deliveries, the majority of transport is by road. The use of digital technology through data collection is at the heart of Saint-Gobain’s “Industry 4.0” and “Supply Chain 4.0” programs. The information technologies used enable optimum vehicle loading and more efficient journey planning by coordinating incoming and outgoing transport to avoid empty kilometers. Thus, the Group uses supply chain modeling, optimization and simulation software to find the best balance between delivery times, costs, inventories and carbon footprint. A dedicated skills center has been set up to develop practices and facilitate collaboration between sites and activities. In partnership with logistics service providers, Saint-Gobain favors the use of vehicles that comply with EURO V and VI emission standards, or promotes the transition to less emitting fuels for the fleet. The Optimera Distribution entity in Norway has pioneered the use of biodiesel fuel for its trucks. Saint-Gobain is committed to using transport modes in an agile way, switching to less polluting multimodal transport modes such as rail and river or sea transport whenever possible. Numerous actions have been taken, such as the initiatives of Point.P in France to develop river transport in the region of Paris. For example, the Quai de Javel branch in Paris receives deliveries by barge, thus avoiding the use of trucks.
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