Preamble

The Purchasing and Logistics Guidelines form the framework for all purchasing and logistics activities.

The guidelines are applied with the aim of balancing the fulfillment of quality, cost and supply targets (QKL).

In the context of an increasing globalization of markets and of our company we consciously embrace our social responsibility. Our approach to purchasing and logistics is based on the UN basic principles of the Global Compact with regard to respect for human rights, working conditions, environment and strong action against corruption.

1. Customer satisfaction

Our objectives in Purchasing and Logistics are geared towards satisfying customer requirements and ensuring customer satisfaction. In implementing these objectives, we work with all parties concerned, across business divisions and in partnerships, in order to ensure the best combination of function, delivery and costs. The achievement of quality targets is a prerequisite.

2. Responsibility for quality

We are responsible for the quality of purchased production materials, consumable and capital items, as well as services, and pursue a zero defect implementation (strategy) of our targets. The quality of our logistic services meet international standards and is geared towards meeting our customer’s requirements. We use transparent and standardized measurements of performance.

10. Development of human resources

To achieve our aims in purchasing and logistics we consciously develop our employees in the fields of entrepreneurial thinking, leadership, social and methodological competence, as well as intercultural skills.

9. Process orientation and continuous improvement

Core processes and structures within the Supply Chain are orientated towards the principles of the BOSCH Business Systems. We are committed to continuous improvement. To this end we ensure short throughput times and strive for economy. The capabilities of our purchasing and logistics processes are rendered transparent by a standardized controlling system.

8. Market and product orientation

We place an equal value on developing the purchasing market and cooperating in product and/or customer projects. We therefore take an active role in developing and cost-optimizing products and services. It is essential that innovative and technically competent suppliers of development services and series products are involved early and systematically in our product development.

7. Information network

Our activities are supported by a worldwide information network.

6. Internationalization

We ensure our competitiveness through an internationally orientated systematic development of purchasing markets, and a global supplier strategy.

Our international development and production network is supported by an international purchasing and logistics network. This enables us to fulfill our customers’ and suppliers’ globalization requirements.

5. Environmental awareness

Environmental issues are important to us. They are taken into account when selecting materials with respect to recycling, disposal, packaging, transport and supplier selection. We value environmentally sustainable solutions.

4. Fairness and transparency

We make purchasing decisions only on the basis of objective and comprehensible criteria. Our objective is the total benefit to Bosch contributed by all parties involved (Total cost). In our choice of suppliers and service providers, and when implementing targets and evaluating supplier performance, we take into account pricing, logistic and qualitative perspectives. We employ a unified approach for this process.

3. Supplier development

For the procurement of goods and services we need strong innovative suppliers with whom we can interact in an open, fair and long term working relationship. We actively support our suppliers in continuously improving their expertise and respect them as independent businesses.