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Supply Chain

Connected from customer to supplier

connected supply chain

In a globalized world, digital technologies change markets, and sustainability is becoming a key factor. For Bosch, this means reacting with greater flexibility, speed and transparency to increasingly individualized customer wishes — while meeting highest quality requirements at the same time. This is a demanding task for the 37,000 employees of Bosch Supply Chain Management. Their work in the subfields of purchasing and logistics relies on automated processes and digitalization.

Supply chain infographic

Supply Chain Excellence for long-term success

Supply Chain Smart Automation

Why is Bosch relying on digitalization as a decisive competitive factor? And what does the daily work in Bosch Supply Chain Management look like in practice? The core task is to ensure robust and agile supply chains along the entire value stream. Innovative technologies and connected flows of goods — e.g. based on real-time data — help Bosch to maintain the highest standards continuously.

 Supply Chain Workshop

Quality as a success factor: this conviction is apparent in the development of strong partnerships and efficient supplier relationships.

All suppliers have a quality management system that aims to ensure defect-free delivery right from the beginning of series production. As part of preventive quality assurance, Bosch coordinates the required measures at the outset of a project. Moreover, the purchasing teams work together with the suppliers on ensuring the continuous adherence to the demands in quality, for example by providing trainings.

Bosch Global Supplier Award

„Our suppliers and service providers are our partners, and central to Bosch’s competitiveness and transformation.“

Bosch Global Supplier Award

Prof. Stefan Asenkerschbaumer, Deputy Chairman of the Board of Management of Robert Bosch GmbH

Since 1987, the Robert Bosch GmbH awards the Bosch Global Supplier Award on a regular basis. This award not only honors an outstanding performance in the production and delivery of products and services, but also strengthens the shared partnership. Common goals, visions and an active exchange between Bosch and the awarded suppliers are the focus of the versatile event.

 Meeting Supply Chain

Bosch pursues the claim of innovation, quality, and excellence throughout the entire supply chain with the strategic goal: supply chain excellence. At the same time, the teams in purchasing and logistics enable globally competitive prices — a fundamental prerequisite for the long-term success of the company. In the spirit of technology pioneer, visionary, and company founder Robert Bosch, the associates in the supply chain aim to drive the digital transformation of Bosch forward. A claim that rests on reliable values. Values to which Bosch is committed, and which are also the foundation of all collaboration with partners and suppliers. This goes beyond the demands for high quality. It is also important for Bosch Supply Chain Management to meet suppliers on equal ground.

Dr. Arne Flemming

Senior vice president, supply chain management, Robert Bosch GmbH

Dr. Arne Flemming, senior vice president, supply chain management, Robert Bosch GmbH

„Supply chain management at Bosch combines purchasing and logistics. Close collaboration between these two functions and our partners from manufacturing allows us to shape the supply chain to the benefit of Bosch. Doing so reveals tremendous potential to leverage synergies and save costs. Cross-functional, open, and trusting cooperation – especially between associates and executives with responsibility for the supply chain – is something I see as a critical factor in successfully seizing this potential.“

Responsibility and sustainability

For Bosch, the values responsibility and sustainability have always been intertwined. Ethically correct and resource conserving business conduct is the basis for a responsible business relationship.

Bosch Code of Business Conduct

Responsibility

Binding guidelines for Bosch and its partners

Binding guidelines for Bosch and its partners

Bosch purchasing and logistics associates work on the foundations of the Code of Business Conduct. This code guides conduct in all aspects of business transactions. Given that legal conduct is also important across company boundaries, Bosch has additionally introduced a binding Code of Conduct for Business Partners.

Code of Business Conduct
sustainability

Sustainability

Environmental and social aspects

Environmental and social aspects

How does Bosch implement its strong commitment to the environment in the Supply Chain Management operating unit? The associates assess the level of environmental protection, human rights, and occupational health and safety on site at suppliers within the scope of their corporate social responsibility (CSR). In addition, environmental and social risks in the supply chain are continuously analyzed and measures are derived from them.

sustainability
Carbon neutralization

Climate protection

Focus on climate

Focus on climate

Bosch promotes its own climate action targets. The company, with its over 400 locations around the world, have been climate neutral since spring 2020, and independently certified as such. This is a great leap forward, but only the first milestone as the company is now tackling Scope 3 emissions, the CO₂ emissions along the entire value chain, from suppliers to customers. It has agreed to a binding and absolute reduction target with the Science Based Targets initiative in this regard: the reduction of emissions by 15 percent by 2030 (compared to levels in 2018), which equates to 67 million tons fewer carbon dioxide emissions.

Bosch has set this target for suppliers and logistics as well as for its own products, which means that the carbon footprint will also become a factor when awarding new procurement contracts in the future, for example. And above all, this means that Bosch is also changing its product portfolio, be it in terms of energy efficiency or even shift in technology.

At the same time, Bosch is encouraging its partners to initiate measures to reduce CO₂ emissions and provides support through its expertise when required.

Carbon neutralization

Visions as the basis for strategic planning

 Autonomous Guided Vehicle

Shaping a sustainable and innovative future, with a focus on digital transformation, for example in the area of Industry 4.0 — this is the declared goal of Bosch Supply Chain Management and its partners. The company is already a developer and pioneer in purchasing and logistics in many areas. This way, both divisions strengthen Bosch's long-term competitiveness with their strategic orientation and innovative strength.

One focus is the factory of the future — an important part of Bosch's IoT strategy. Driverless transport systems, for example, can be used to automate many internal transport processes. The real-time localization of vehicles, carriers, or materials is continuously becoming the focus of technological perspectives. After all, the strategic goal is and remains: supply chain excellence. Today — and even more so in the future.