Supplier Guide Book

Collaborate, perform, grow together

 Message from our
Chief Procurement Officer
Dear Supplier,

We are pleased to publish the Schneider Electric

Supplier Guide Book. This document has been
designed in order to provide you, in a simple way,
an overall view of what it means to be a Supplier
of Schneider Electric: what you need to know from
us, how we intend to drive and animate our relationship
with you in a mutually demanding and collaborative
DK Singh mindset, and our expectations and commitments
CPO in order to deliver mutual benefits and continued
Schneider Electric progress.

This Guide Book is a reference for our joint efforts

towards excellence, best-in-class competitiveness,
and should also enhance our collaboration.

Therefore, I count on your own commitment, as well as

our alignment within Schneider Electric, to follow these
principles for a continued cooperation, always inspired
by Customer Satisfaction as our nr.1 priority.

Schneider Electric Supplier Guide Book | 2

 Contents
Schneider Electric in a nutshell 4

01  chneider Electric and Supplier

01 SCode of Conduct 5-6

02 Procurement & Supply Chain Vision 7-9

Procurement & Supply chain vision 8

Procurement organization 9

03 Collaborating with Schneider Electric 10-14

Collaboration opportunities with Suppliers

all along our Offer Life Cycle 11
• Anticipation 12
• Offer creation 13
• Operations 14

04 Procurement Excellence model 15-19

Supplier selection, performance & development 16

Supplier collaboration steps 17
Our strategy brings growth potential to best suppliers 18
Our priorities and expectations 19

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Schneider Electric in a nutshell
Schneider Electric is the global specialist in energy management and automation.

~ 25 billion euros ~ 5% of revenues ~ 144 000 people

Yearly Sales devoted to R&D in more than 100 countries

On 5 diversified end markets We are a ‘Tech’ Company With balanced geographies:

Accouting for 75% of the world‘s The future is electric:

energy consumption:

28%
Utilities & Infrastructure Residentials Buildings
25% Western Europe
Confort & Security
Accurate control North America
Industry & Machines
28%
Data centers & Networks Electric Vehicle Asia Pacific
Carbon reduction
Healthy environment 19%
Non-residential Buildings Rest of world

Residential Buildings Industry

Automation
Competitiveness

Data Centers
We make energy safer, more reliable,
Reliability
more efficient, more productive.
Efficiency

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01
Supplier
Code of Conduct
Schneider Electric and Supplier
Code of Conduct
Environment
Schneider Electric has a track record • Compliance (REACh, RoHS)
and is recognized as a leader on Sustainable • Natural resources
Development. • Carbon footprint reduction
• ISO14000 & ISO26000
Our Suppliers have a key role to play and our most
fundamental expectations are listed within a ‘Code
of Conduct’ reference document.
We expect this Code of Conduct to be Fair & Ethical Business
implemented by all our suppliers delivering goods Human Rights Practices
or services to Schneider Electric, supported by • No Child Labour • Integrity & Transparency
an effective management system, applied and • Student rights • No corruption, extortion,
maintained to ensure compliance with this Code • Non-Discrimination bribery, embezzelment
of Conduct, mitigate any risk of deviation and • Diversity promotion policy • Formal Business commitments
guarantee continuous improvement (gender, origin, education, • Conflicts of Interest prevention
handicap,...) • Gift & Amenities limitation
Some of the topics covered by this Code of policy, Conflict of Interest
Conduct are shown here. The complete reference • Intellectual Property
document shall be found on our website. • Protection of Identity and Non-
Retaliation
Beyond and above these expectations,
we encourage all our Suppliers to follow
the guidelines of ISO26000. This is Labour Practices Sustainable Procurement
even a prerequisite for certain of our • Fair and ethical workplace • Suppliers Management with
Suppliers. • Freely chosen employment inclusive guidelines and equal
• Compliance to Labour opportunities
Regulations • Conflict Minerals - free
• Working Conditions regulation
• Health & Safety • Code of conduct
• Freedom of Association communication to Suppliers
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and monitoring
02
Procurement
& Supply Chain
vision
Procurement & Supply Chain vision

Strategic objectives

Procurement vision • To enhance Supplier total value

proposition through collaboration,
• Support business and Company as part of world-class Supply Chain:
Supply chain vision needs –  quality, service level, to meet
• Deliver on Schneider’s or exceed Customers
• Customer satisfaction #1 priority and Tailored Supply Chain’s expectations,
• Market-driven and tailored expectations of Customer – competitive landed costs,
to customer behavior satisfaction, cost and cash. driving high level of productivity,
• Competitive advantage in the • Deliver the most competitive and –  optimized cash,
market flexible supply base in the industry – agile and secured Supply Chain,
• World class competencies throughout the product life cycle. – sustainability through
and talents • Develop world class procurement permanent improvement.
• Dynamic improvement process with our best talent and drive
• Sustainability values of accountability, • To be a recognized Business
collaboration, and simplification. partner:
• Contribute as a role model – supporting Schneider Electric’s
to a responsible & sustainable top-line growth and margin
environment. – with a simplified and digitized
Procure-to-Pay system and
process.

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Procurement organization
addressing a geographically balanced spend representing 50% of Schneider Electric sales revenue.

Regions Support functions

•  Perform operational procurement operations • 

Lead procurement transformation
and indirect procurement for all sites in the region through global and transversal projects
• Manage Regional suppliers • 
Drive procurement excellence
through process capabilities building

Businesses Markets

• Support Offer Creation Process needs • Design and implement strategies for
• Lead Finished Goods procurement direct and indirect categories, supporting
businesses and regions needs
• Manage Global suppliers

Procurement missions
Procurement organization chart

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03
Collaborating with
Schneider Electric
Collaboration opportunities with Suppliers
all along our Offer Life Cycle
From Customer... ...to Customer

Offer Life Imagine Develop a new product or solution Go-to-market Deliver

Cycle

Anticipation Offer creation Operations

Advanced Offer Project Management Process Offer Fulfillment Process (OFP)
& Technology Management (PMP) New Offer, Solutions, (Manufacturing, Delivery
product design & industrialization to Customers)
Driven
by...

Technology roadmap Business / product plan Offer & Business evolution

Businesses Procurement Teams Procurement Operations

Markets Procurement Teams

Colllaborate
with...
Indirect Procurement Global Solutions Procurement
Indirect Procurement organization involved from anticipation A dedicated organization working in project mode delivering
to operations supporting regional needs custom solutions for our Customers
Unmarked set
by SESA13025

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 Anticipation Offer creation Operations

Co-Innovation with Suppliers

Innovation is a Schneider Electric Supplier innovations are

top priority to create a sustainable encouraged, then systematically
competitive advantage on the market: evaluated and selected at new
capture un-met & emerging needs, projects early stage to improve
delight our Customers, make their life value creation and create offer
easier, solve their painpoints, leverage breakthroughs.
the best of technology.

A limited number of strategic partners

Innovation arena is very large: are selected based on their innovation
business models, customer capabilities and technology
experience, technology, services, leaderships, global reach, competitive
processes, supply chain performance, performance to boost collaboration
tools for efficiency. intensity and joint value creation.

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 Zoom on ‘new offer’
Project Management Anticipation Offer creation Operations
Process (PMP)

The Project Management Process (PMP) is the Schneider Electric unified collaborative model
needed to support the offer projects execution.

OPEN DO SELL CLOSE

Concept Product & Implementation Production Launch

Definition
& feasibility Process Design & validation for stock & Closure

• Sign non disclosure

agreement • Secure ramp up of
• Perform suppliers audits Supply Chain
• Establish co-development • Select suppliers for business award • Ensure project targets
Activities
contract (feasibility • Organize contract reviews based on selected design are met
with
and design) • Perform Industrialization • Identify incremental
suppliers
• Set-up project reviews • Validate Supply / Solution / Process improvements
• Launch request for • Organize feed back
information & request on the project performance
for quotation

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 Linking supplier added
value with tailored Supply Anticipation Offer creation Operations
Chain strategy & Global
Solutions
Our customers have different supply needs supporting different business needs

Customers Supply needs

Schneider
Schneider Electric Define custom Understand Electric
deliveries meeting Supply Chain Customer service (Plants, Projects & Solutions)
Customer service needs services needs

From catalog Products to tailored Solutions and Projects,

we support our Customer business needs with specific supply chain approaches.
We expect suppliers to deploy such capabilities with our plants and Solutions centers.

Understand Define custom Product deliveries

Schneider Electric Supply Chain meeting Schneider Electric
service needs services service needs

Suppliers Supply needs

This does not apply

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04
Procurement
Excellence model
Supplier selection, performance
& development
Our ‘Procurement Excellence System’ (PES) supports Supplier sourcing, Relationship Management
& Procurement model in a unified way across our Company

Ongoing Procurement

Implementation • Purchase Orders

and Relationship • Transaction Management
Management • Delivery, Acceptance
and Payment
• Relationship governance • Performance management
• Product & Service
Business Allocation development
• Collaborative projects
• Supplier qualification • Supplier development
• Negotiation
• Contracts and business awards
Sourcing

• Market/ Needs Analysis

• Supplier classification
• Supplier development
& selection

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Supplier collaboration steps
Aiming at best in class performance on 7 dimensions

Quality

10

8
Cooperative Delivery
attitude 6 & Logistics

Planet Productivity
Supplier performance & Society

module (SPM)

Supply Qualification
To optimize the performance
Module (SQM) of our End-to-End supply chain Offer or process Competitiveness
to maximize our Customers innovation
satisfaction

Supplier Approva- Best in class level Current level Development Area

To ensure rigorous evaluation
lModule (SAM) of Supply and Supplier
c o m m i t m e n t a ga i n s t a l l t h e Gaps in performance must be tackled by suppliers themselves or through
qualification requirements development programs initiated by Schneider Electric (Quality, Logistics, Lean…)

To secure Suppliers capabilities linked to document

to satisfy Schneider Electric’s
needs
For Indirect Procurement; Quality,
Delivery & Logistics are merged into 1 dimension: Service Level

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Our strategy brings growth
potential to best suppliers
Schneider Electric procurement strategy is focused on developing a robust network
of suppliers as the foundation of our extended Supply Chain.

~1,000 strategic Suppliers provide a wide variety of products, services and solutions.
They are selected upon demonstrated Performance & Collaboration.
Our Schneider Supplier Leader will foster bi-directional communication, and facilitate
the relationship.

This strategy brings the following benefits to you :

• 
Global business opportunities and visibility

• Prime access to new offer creation projects

• Procurement spends concentration

* For Solution Procurement : the Supplier Leader role is taken by Solution Purchaser

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Our priorities and expectations
Our first priority is the satisfaction of our Customers

We expect outstanding service across all

We want to turn our Supplier relationship our Supply Chain needs We concentrate our spend and efforts
toward higher business added value on most performing suppliers

We expect you to collaborate & innovate

Grow Sustainable development is part of our DNA

Our Supply Chain model is buy-oriented,

Suppliers are critical to our performance We expect you to engage with us and share
a Business ‘Code of Conduct’

We consider cooperation as a must You are a key component of our price

for successful relationship competitiveness

We are engaged in business transformation Collaborate Perform We expect you to deliver at any time the
with you. Our mutual commitment to be fully best total cost of ownership, with permanent
responsive is essential progress

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Life Is On | Schneider Electric is a trademark and the property of Schneider Electric SE, its subsidiaries and affiliated companies.
All other trademarks are the property of their respective owners.
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