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. The Guide Book describes
how we work in Schneider Procurement, and how
we intend to drive and animate our relationship
Dan Bartel with you in a mutually demanding and collaborative
CPO mindset. It also details our expectations and
Schneider Electric commitments in order to deliver mutual benefits
and continued progress.

This Guide Book is a reference for our joint efforts

towards excellence, best-in-class competitiveness,
and it also serves to enhance our collaboration.

Therefore, I count on your commitment, as well as

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

Schneider Electric Supplier Guide Book | 2

Contents

01 Supplier Code of Conduct 5-6

02 Procurement Vision 7-9

Procurement mission 8
Procurement organization 9

03 Collaborating with Schneider Electric 10-15

Offer Life Cycle collaboration with Suppliers 11

• Innovate 12
• Offer creation 13
• Operations 14
Schneider Electric Supplier Portal 15

04 Procurement Excellence model 16-20

Supplier selection, performance & development 17

Supplier collaboration steps – Quality Management 18
Our strategy brings growth potential to best suppliers 19
Our priorities and expectations 20
Schneider Electric in a nutshell
Schneider Electric provides energy and automation digital solutions for efficiency and sustainability.

Key figures for 2021 A well-balanced global presence

2021 Revenues breakdown

5% of revenues
devoted to R&D

26%
€29 billion Western
Europe
Group 2021 revenues

43% of revenues 29% 31%

in new economies
North Asia
America Pacific

128,000 + 14%
employees in over Rest of
100 countries world

Two business

23% 77%
€6.7 billion €22.2 billion

Industrial automation Energy management

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01
Supplier
Code of Conduct
Schneider Electric and Supplier
Code of Conduct
Schneider Electric has a track record and Environment Fair Business Practices
is recognized as a leader on Sustainable
Development. Schneider has joined RBA • Carbon footprint reduction • Ethics
(ex EICC) global alliance. • Resource conservation and • Integrity & Transparency
circularity • No corruption, extortion, bribery,
Our Suppliers have a key role to play in • Material use (Conflict Minerals, embezzelment
Schneider Electric’s journey to sustainability. REACH, ROHS) • Intellectual Property
Our expectations are listed in the ‘Supplier • Protection of Identity and Non-
Code of Conduct’. We expect this Code of Retaliation
Conduct to be implemented by all our suppliers
delivering goods or services. The suppliers need
to implement an effective management system Human Rights & Decent Work Sustainable Procurement
to apply and maintain all regulatory compliances
and the requirements mentioned in this Supplier • No Child Labour • Suppliers engage their sub
Code of Conduct. They need to proactively • Free employment suppliers in responsible manner
mitigate any risk of deviation and guarantee • Working hours & weekly off • Code of conduct communication
continuous improvement. • Wages & benefits to suppliers and monitoring
Some of the topics covered by this Code of Conduct • Non-Discrimination & diversity
are shown here. The complete reference document
shall be found in Schneider Electric website.
Health & Safety
Beyond and above these expectations,
we encourage all our Suppliers to follow • Health & Safety risk assessment
the guidelines of ISO26000. This is even • Personal Protective Equipment
a prerequisite for certain of our Suppliers. (PPEs)

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02
Procurement
Vision
Procurement mission
High quality, innovative, agile, competitive and responsible suppliers are key.

Our global procurement mission

aims to strongly align with our
company strategy of delivering Customer
customer value through transformation first
of energy management.
We will do this by contributing to top
line and bottom line growth, while
establishing a leadership position
in sustainable sourcing. Top line Bottom line Sustainable
growth impact sourcing

Our key priorities of Quality, Innovation,

Cost, Cash and Sustainability are
strongly supported by our people,
Corporate
our Tailored, Connected, Sustainable Product
Quality Innovation Cost Cash Social
compliance
Supply Chain and Digitization. Responsibility
As a key part of our end-to-end supply
chain, we count on our suppliers
to be strong contributors across all
aspects of performance. STRIVE
Sustainable Trusted Resilient Intelligent Velocity & Efficiency

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

Regions Support functions

• Perform operational procurement • Lead procurement transformation

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

Businesses Markets

• Support Offer Creation Process • Design and implement strategies

needs for direct and indirect categories,
• Lead Finished Goods procurement supporting businesses and regions
needs
• Manage Global suppliers

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03
Collaborating with
Schneider Electric
Offer Life Cycle collaboration with Suppliers
From Customer... ...to Customer

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

Innovate Offer creation Operations

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

Business / Technology roadmap Business / product plan Offer & Business evolution

Through a digital Schneider Supplier Portal

platform…

Businesses Procurement Teams Regional Procurement Teams

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

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Innovate Offer creation
Co-Innovation with Suppliers
Why?
Innovation is a Schneider Electric top priority
to create a sustainable competitive advantage
on the market: capture un-met & emerging
needs, delight our Customers, make their life
easier, solve their painpoints, leverage the best
of technology and solution.
What?
Co-Innovation is everywhere from hardware
& software technologies, service, digital offer,
solution to the new business models, customer
experience, processes efficiency, supply chain
performance, into the solution needed for a
sustainable & digital new electric world.
How?
We collaborate/partner with the most
innovative suppliers to solve problems
together from offer creation to operations.
All ideas are evaluated & selected in agile
Operations
Co-Innovation is part of our Sourcing
Strategy to identify & select the key partners
based on their innovation capabilities and
technology leaderships, global competitive
performance, including sustainability to boost
collaboration intensity and joint value creation.
And to recognize the innovation mindset.
Our suppliers’ co-innovations help us
to impact our business growth, also gain
in efficiency by accelerating time to market,
reducing our R&D costs. They also help us
to accelerate our sustainability result.
mode, at new project early stage together
with the lines of business or/and Global
Supply Chain, we run and shape pilots,
test and develop co-innovation.
 Innovate Offer creation Operations

Zoom on ‘new offer’ Offer LifeCycle Management (OLM)

Offer Lifecycle Management is the system through which Schneider Electric innovates and delivers products
and solutions to create customer value and sustainable, profitable growth.

Concept Product & Implementation Production Launch

Definition
& feasibility Process Design & validation for stock & Closure

• Sign non disclosure

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

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 Innovate Offer creation Operations

Linking supplier added value with tailored Supply Chain strategy & GlobalSolutions
Our customers have different supply needs supporting different business needs.

Customers Supply needs

Schneider Electric Define custom Understand

(Plants, Projects & Solutions)
deliveries meeting Supply Chain Customer service
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 & Quality needs

Suppliers Supply needs

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Schneider Electric Supplier Portal
Suppliers are an integral part of our end-to-end Supply Chain. se.com/ww/en/about-us/suppliers

Supplier Relationship Supply Chain Management

Management › Demand planning
› Supplier qualification › Forecasts
› e-sourcing › Purchase Orders
› Contract › Shipping Notice
› Quality workflows › Deliveries
› EHS › Quality control data
› Risk management
› Innovation

We leverage digitization to enhance quality, speed, transparency, efficiency with Suppliers.

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04
Procurement
Excellence model
Supplier selection, performance
& development
Our ‘Procurement Excellence System’ (PES) supports Supplier sourcing, Relationship Management
& Procurement model, with a primary focus on Quality and customer satisfaction in a unified way
across our Company.
Sourcing
• Market/ Needs Analysis
• Supplier classification
• Supplier development & selection
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Business Allocation
• Supplier qualification
• Negotiation
• Contracts and business awards
Ongoing Procurement
• Purchase Orders
• Transaction Management
• Delivery, Acceptance
Implementation and Payment
and Relationship • Performance management
Management
• Relationship governance
• Product & Service development
• Collaborative projects
• Supplier development
Supplier collaboration steps
Aiming at best in class performance on 7 dimensions, where quality is #1 priority.

Quality

10

8
Cooperative Delivery
attitude 6 & Logistics

Sustainability Productivity
Supplier
performance
module (SPM)

Supply
Qualification To optimize the performance
Module (SQM) of our End-to-End supply
chain to maximize our Offer or process Competitiveness
innovation
Customers satisfaction
Supplier
Approval To ensure rigorous evaluation
Best in class level Current level Development Area
Module (SAM) of Supply and Supplier
commitment against all the
qualification requirements
Gaps in performance must be tackled by suppliers themselves or through
To secure Suppliers development programs initiated by Schneider Electric (Quality, Logistics, Lean…)
capabilities to satisfy
Schneider Electric’s needs

For Indirect Procurement; Quality, Delivery & Logistics are merged

For more details please visit se.com/ww/en/about-us/suppliers. 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 Our Schneider Supplier Leader will foster
products, services and solutions. They are selected bi-directional communication, and facilitate
upon demonstrated Performance & Collaboration. 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, starting by Quality 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, We expect you to adhere and comply to the
Suppliers are critical to our performance requirements mentioned in the Supplier 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 We expect you to deliver at any time the
with you. Our mutual commitment to be fully Collaborate Perform 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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