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Annual Report Sustainable Development Report ... - Groupe SEB

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Protecting inventions,<br />

to stay ahead of rivals<br />

The Group pursues an active and interactive policy<br />

of intellectual property protection, for which clear procedures<br />

have been laid down jointly with the research, development<br />

and marketing teams. This policy calls for strict discipline<br />

in recording and centralizing all advances in research.<br />

– Preliminary patent applications: this initial stage<br />

in patent protection involves filing a set of technical<br />

specifications with the French national patents office<br />

(INPI*). This also enables detailed management<br />

of knowledge and skills within the Group. In 2005,<br />

<strong>Groupe</strong> <strong>SEB</strong> filed 340 preliminary patent applications.<br />

– Full patent registration: with an annual average of<br />

85 full patent registrations in the last three years,<br />

the Group has documented its inventions and protected<br />

its intellectual property.<br />

The Group also takes active steps to prevent the<br />

counterfeiting of its brands, models and registered patents<br />

in order to guarantee the reliability and authenticity of its<br />

products. In the last few years, the Group increased its efforts<br />

in this area in China, where more than 50,000 articles were<br />

seized in 2005.<br />

* Institut National de la Propriété Industrielle<br />

|24<br />

Controlling costs,<br />

to be more competitive<br />

Rationalization of production processes also involves<br />

strict management of costs. The Purchasing department<br />

monitors suppliers and their conformity with the Group's<br />

standards and demands. It has drawn up a panel of<br />

381 suppliers (including 60 Chinese) which account for 85%<br />

of our purchases. The reliability of panel members is regularly<br />

reviewed. Close liaison with its suppliers, who are involved<br />

at an early stage in projects, means that the Group can reap<br />

substantial benefits in terms of quality, delivery deadlines,<br />

rates and conditions of payment.<br />

Despite the increased price of certain raw materials<br />

in 2005, the Group performed well in this area, limiting to 1%<br />

the year-on-year rise in its purchasing index, while it improved<br />

its purchasing conditions in Europe and in low-cost countries.<br />

Is-sur-Tille – Electric fryer test laboratory.<br />

Increased use of sourcing<br />

In recent years, <strong>Groupe</strong> <strong>SEB</strong> has been increasing its use of sourced components, sub-assemblies or finished products. This practice<br />

of sourcing basic or low added-value products makes it possible for the Group to meet competition from low-priced products, while<br />

it also frees the Group to concentrate on its strong point: high-tech innovation and the creation of value for the consumer.<br />

In 2005, sourced products accounted for 25% of total Group sales, a rise on the previous year. The growing use of sourcing calls for<br />

close liaison between the Group's research and development, industrial patents and purchasing teams. Together, they must<br />

accurately define needs and monitor strict adherence to specifications by suppliers, while at the same time ensuring protection<br />

of the Group's intellectual property.<br />

Product Lifecycle Management<br />

Idea u Research u Prototypes u Preliminary study u Detailed study u Market survey

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