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From sourcing to supply

Maximising value with suppliers

Our mission is to maximise value with suppliers to create profitable business and deliver the best ingredients, enabling us to differentiate our products. We bring this mission to life through our global procurement strategy, which has mutual value creation at its heart.

Our professional procurement team collaborates in ways that enable us to contribute to the objectives of our Company and our suppliers. The team aims to be trusted advisors, involved in Givaudan’s markets and capable of adapting to rapidly changing environments.

Raw materials

We are expanding our global category management team to increase our sourcing coverage to the entire raw material portfolio and transfer ‘purchase to pay’ activities to the Givaudan Business Solutions centres. To enhance stakeholder collaboration, the global team will be enriched with several additional internal business partner roles. This new organisational structure optimises the utilisation of our talent, determines the right priorities with our business partners and provides the opportunity to increase our focus on risk, responsibility and innovation through strong supplier partnerships.

Indirect Materials and Services (IM&S)

The IM&S team is continuously enhancing the proximity to our business partners and engages with its internal customers at all sites to understand their needs. This close collaboration is fundamental in determining the right focus on strategic initiatives, negotiations and supplier management.

With the introduction of regional category management in the Europe, Africa, Middle East, Latin America and Asia Pacific regions, we are further optimising our resource allocation between global, regional and local teams, strengthening internal business connections and best geographical distribution of buying power.

Sourcing for shared value

To embed a sustainability purpose in our sourcing activities, our approach – sourcing for shared value – is built to ensure our materials are responsibly sourced, secure a stable supply of our sourced materials, and ensure local producers and their communities benefit from working with us.

  • Our Responsible Sourcing programme drives compliance in the way products are produced and encourages suppliers to achieve high standards in health and safety, and in social, environmental and business integrity. 
  • Sourcing at origin initiatives secure the supply and quality of key natural ingredients in countries of origin by working directly with producers and suppliers while fostering local value creation.  
  • Communities at source projects support producers and their communities through a range of projects in 11 countries around the world. 

We ensure our materials are responsibly sourced, a stable supply of our sourced materials is secured, and local producers and their communities benefit from working with us.

Innovation

Accelerating the creation of mutual value through Supplier Enabled Innovation is a key goal, and a dedicated Procurement Innovation team was appointed in 2017. This team is working with the Procurement organisation and our two divisions to offer solutions that meet Givaudan’s business challenges, and is defining a framework for long-term collaboration in raw materials and indirect material supply.

Supply chain

In 2017, we continued the implementation of our 2020 supply chain strategy. This is aimed at bringing more agility, reflecting fast-changing customer needs while continuing to reduce our supply chain costs. The divisional supply chain functions worked closely together in the design of the Givaudan Business Solutions model.


For the full version please visit page 42 of the Annual Report.