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B U S I N E S S A N D S U S T A I N A B L E D E V E L O P M E N T R E P O R T 2010 DEPLOYING UNIQUE INDUSTRIAL EXPERTISE Groupe SEB has built an international industrial base which is geared to efciently serve targeted markets in optimal competitive conditions. Pont-Evêque, the world’s biggest factory for steam-ironing systems. These factors, combined with ongoing strategic rationalization of our factories, ensure that we can be competitive. Finally, direct control of production means the Group can guarantee the quality of its products. PRODUCTION IN LOW-COST COUNTRIES, AN ADDITIONAL ADVANTAGE However, for certain basic products with low added value, the Group has equipped itself with industrial facilities in low-cost countries. As our products are relatively small, there is no obstacle to manufacturing them far from their intended markets. PRODUCTION IN MATURE MARKETS, THE POWER Of INNOVATION Historically based in Europe, in particular in France, Groupe SEB has always maintained a substantial industrial base in these markets – unlike many of its rivals who have gradually relocated their production to low-cost countries. This economic choice is possible because of the Group’s deliberate policy of specializing its factories by making them centres of expertise, which are then used as a benchmark for the whole Group. Within this framework, we encourage close working links between research, development, marketing and production to facilitate the process of innovation. This teamwork also involves sharing skills and know-how in such areas as metal stamping, surface coating, plastics, or knowledge of materials. The decision to manufacture in Europe is justified when it is focused on innovation, high added-value products and the economies of scale made possible by automated facilities. Proximity to markets is also a major advantage used by the Group to further its expansion. Making products locally helps to reduce indirect costs (logistics, import charges) and allows for more efficient and rapid penetration of high-growth emerging markets. Moreover, through its local industrial presence, the Group builds up new technological and industrial expertise, which it can then duplicate for the benefit of all its operations and markets. Thus, in South America, Brazilian teams are the Group’s experts in blenders and fans, while Supor in China is a source of specialist knowledge in rice cooking and induction hobs. Finally, the Group pools the experience and synergies of its factories in order to offer increasingly relevant solutions to consumers. For example, 2011 will see the arrival of a new range of pressure cookers with an insert lid (typical in Brazil), and a nonstick coating (from our Rumilly plant in France). STRENGTHENED TEAMS TO HANDLE SUPOR SUB-CONTRACTING fOR THE GROUP: +80 STAff IN CHINA
E X P E R T I S E 54-55 OUTSOURCING, A TACTICAL LEVER Today’s industrial model involves a trade-off between own-production and outsourcing. The Group adapts its response strategically, and uses outsourcing at different levels in the production chain. In the first place, outsourcing gives access to complex sub-assemblies which are very labour-intensive, and which would erode its competitive edge if the Group made them in its own factories. In the second place, sourcing can give access, if necessary, to finished products*, especially where this concerns renewal of existing products with no new innovation, or an urgent need to replenish stocks – or again, if this option is better suited to the commercial outlook of the product. The decision to outsource involves close collaboration with suppliers to ensure compliance with the Group’s high standards. O P E R AT I N G S T R U C T U R E S BRAZIL’S RECIfE PLANT UPGRADED TO A fULL-SCALE fACTORY: 1.7 MILLION ARTICLES PRODUCED IN 2010 * Share of sourcing in 2010: 30% Rumilly: 45 million articles made in 2010. Panex factory in Brazil. Vacuum cleaner centre of expertise, Vernon, France. SD SPOTLIGHT r SUPOR EMPHASIZES WORK SAfETY AND THE ENVIRONMENT Wah Hock Chia, Director of Production, Supor (China) “Supor’s work safety performance improved in 2010. This reflects the reinforcement of our work safety policy, which is the subject of a monthly report to Groupe SEB. Last year we carried out an extensive programme of training and safety awareness in all our plants. We also invested in machine safety and converted certain equipment to semi-automatic mode to reduce the risk of accidents. The environment is another important focus of our industrial policy. We are stepping up our efforts particularly in the areas of water and energy saving. For example, in 2010, we modernized several water treatment facilities and implemented solutions for recycling hot air from compressors for re-use in certain processes. We are working to obtain ISO 14001* and OHSAS 18001* certification for all our plants by the end of 2012, in line with the Group’s standards.”
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BEYOND LIMITS B U S I N E S S A N D
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B U S I N E S S A N D S U S T A I N
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1 Chairman’s message A BUSINESS M
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