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Purchasing Principles : Our commitments All rights reserved
The entire content is the exclusive property of MGTS SA. Reproduction an representation are prohibited.
MGTS SA GENEVA BUSINESS CENTER
12 AVENUE DES MORGINES
1213 PETIT LANCY - SWITZERLAND www.mgts.com [email protected] editorial
Mobivia Groupe’s founding values gather men and women around a common project: “making mobility easier”. Driven by the value of RESPECT, NGTS endeavours to add transparency in its relationship with suppliers, contractors and the group’s business units and therefore publishes its principles and commitments in purchasing.
This document gathers necessary information on how our purchasing office works and what we expect from our suppliers but also on our commitments towards all our stakeholders. It is aimed at defining the principles of our requirements as well as laying the framework for our suppliers and contractors to express their own requirements and expectations towards NGTS. Every day, our purchasing teams work with current and/or potential suppliers in mutual respect, striving to bring the best choice of products and services to the millions of customers who trust our business units each year.
I invite you to read this document and, through it, to get to know our company and Mobivia Groupe better. I wish you a pleasant reading.
Ignacio FORNES MGTS SA Managing Director
3 contents
1 W Mobivia Groupe Milestones ...... 6 Group values...... 8 Key figures ...... 9 Group activities ...... 11 International development ...... 12
2W MGTS An open-minded structure ...... 16 MGTS in figures ...... 17 Ethics in practice ...... 18 An added value to its partners ...... 20
3W O ur comitments in the purchasing process Need identification and qualification ...... 22 A range of skills ...... 23 Supplier qualification ...... 24 Supplier relationship management ...... 26 Product quality ...... 28 Call for tenders management ...... 29 Product design and innovation ...... 30 Environmentally responsible logistics ...... 31
4 W mobivia groupe
5 milestones W 1970 Creation of the 1st Norauto centre in Englos (France) W 1986 1st Norauto centre abroad (Espagne) W 1994 1st own brand. W 1998 1st environmental report. W
2002 Creation of Carter Cash W 2003 - 2004 Acquisition of Midas Europe
Creation of Synchro Diffusion
Mobivia Groupe organises its own tyre recycling channel
6 W 2005 Creation of Norauto Foundation - Creation of NGTS W 2006 Birth of Norauto Groupe, which will become Mobivia en 2010 W 2008 Signature of the Global Pact W 2012 Implementation of the Buyer Ethical Policy W 2014 Implementation of the Supplyer Ethical Policy W 2014 Acquisition of Bythjul W 2015 Acquisition of Skruvat, NGTS celebrate its 10 years and becomes MGTS in 2016
7 group values
Our core values
WW PERFORMANCE « Achieve our goals and try to go beyond them »
WW RESPECT « Respect partners and be respected. »
WW ENTREPRENEURSHIP « Have the right to fail and endeavour to act and innovate.. »
WW SHARING « Know how to give and receive. »
WW AUTHENTICITY « Be true to oneself and belong to a team. »
8 key figures WW
ECONOMIC DEVELOPMENT
1.76 billion euros (ex- Tax turnover including franchises) 1 300 customer contact points 15 brands 6 business activities 47 branches opened each year on average since 10 years 16 countries WW
HUMAN CONSIDERATIONS
17.8% of women in the group in 2014
1 681 permanent recruitments in 2015
Over 11 000 employees (not including franchises)
Over 5% of the capital is owned by the employees
Data as of December 2015 9 key figures WW
THE CUSTOMER
88.6% : customer recommendation rate in 2014 for Midas 91% : customer recommendation rate in 2014 for Norauto 94% : satisfaction index in 2014 for Satisfied and Very Satisfied Customers (Norauto, Auto 5, Midas) WW
THE ENVIRONMENT
18 used products recycling channels in the group (batteries, tyres, oil, filters, etc.). 830 sites covered by an Environmental Management System (representing 76% of the group sites altogether). 100% of used tyres are recycled at Norauto, Midas and Carter Cash. Nearly 42000 tons of equivalent co2 avoided thanks to tyre, oils, coolants and oil filters recycling, WW
SOCIETAL CONSIDERATIONS
3.5 million euros paid out by Norauto Foundation to support 515 projects since its creation in 2005. 100% of our suppliers have signed our Ethical Policy.
Data as of December 2015 10 Group Activies
auto centres
fast-fit services Pure player
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W W
W W
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btob New mobility
low-price outlets
11 International development
PAYS SCANDINAVES** Scandinavian Countries** 1 * 1 * Acquisition de Skruvat en décembre 2015
** Suède (siège), Norvège, FRANCE* Danemark et Finlande France* ** Sweden (headquarters), Norway, Denmark and Finland 369 RUSSIE BELGIQUE Russia Belgium 343 2 53 MAROC 43 Morocco 38 POLOGNE 4 1 Poland 5 19
1 AUTRICHE Austria * dont 100 franchisés * including 100 franchisees 10 ALGÉRIE Algeria ROUMANIE 3 Romania 3 ESPAGNE* Spain* ITALIE 71 Italia PORTUGAL 29 Portugal 145 73 ARGENTINE 22 2 Argentina * Îles Canaries incluses 63 * Canary Island included 8
*FRANCE DÉTAIL PTOM OCT DETAILS
Data as of December 2015 ÎLE DE LA RÉUNION MARTINIQUE GUADELOUPE NOUVELLE CALÉDONIE MAYOTTE GUYANE GUYANE (Franchisé) 12 8 REUNION ISLAND 4 MARTINIQUE 4 GUADELOUPE 2 NEW CALEDONIA 1 MAYOTTE 1 GUYANA 1 GUYANA (Franchisee) International development
PAYS SCANDINAVES** Scandinavian Countries** 1 * 1 * Acquisition de Skruvat en décembre 2015
** Suède (siège), Norvège, FRANCE* Danemark et Finlande France* ** Sweden (headquarters), Norway, Denmark and Finland 369 RUSSIE BELGIQUE Russia Belgium 343 2 53 MAROC 43 Morocco 38 POLOGNE 4 1 Poland 5 19
1 AUTRICHE Austria * dont 100 franchisés * including 100 franchisees 10 ALGÉRIE Algeria ROUMANIE 3 Romania 3 ESPAGNE* Spain* ITALIE 71 Italia PORTUGAL 29 Portugal 145 73 ARGENTINE 22 2 Argentina * Îles Canaries incluses 63 * Canary Island included 8
*FRANCE DÉTAIL PTOM OCT DETAILS
ÎLE DE LA RÉUNION MARTINIQUE GUADELOUPE NOUVELLE CALÉDONIE MAYOTTE GUYANE GUYANE (Franchisé) 8 REUNION ISLAND 4 MARTINIQUE 4 GUADELOUPE 2 NEW CALEDONIA 1 MAYOTTE 1 GUYANA 1 GUYANA (Franchisee) 13 14 W mGTS
15 an open-minded structure
the MGTS is essentially international owing to its activity, the location of its employees and the variety of their nationalities.
LILLE SHANGHAI FRANCE CHINE CONCEPTION SOURCING R&D OFFICE
New DeLHi inde SOURCING GENEVA OFFICE SUISSE HEAD OFFICE
53 collaborators from 6 different nationalities based in Geneva, Lille, Shanghai and New Delhi.
MGTS deliberately chose to be rooted in two different cultures, both industry and retail-oriented:
the industrial CULTURE, is based on the importance given to the supplier relationship: it means recognizing their added value, being open to their technical skills and to a real partnership.
the retail CULTURE, is based on the importance given to the customers, their expectations and requirements, especially regarding quality, starting from needs identification.
16 an open-minded structure mgts in figures
17 000 managed products since the beginning 7 000 active references 6 product categories: Motoring and garage equipment Audio and entertainment technology Tyres and accessories Interior accessories Transport range E-mobility
145 active suppliers and 75 suppliers qualified in 24 countries 170 supplier audits every year 50 suppliers qualified in 2015 1 600 quality inspections every year
4 208 containers in 2015 60% barge or train shipping 25% of our team dedicated to quality
100 new products every year
Data as of December 2015 17 Ethics in practice
MGTS’s ethical policies are based on the UN Global Compact signed by Mobivia in 2008 and respect the group values.
2012: Employees Ethical Policy
WW Rules of personal behaviour • Terms of acceptance or refusal of advantages and gifts from suppliers; • Terms of participation to business meals, seminars and trips.
WW Potential conflicts of interest • Positioning in case of personal connection with suppliers; • Approach in business relations between MGTS and a former employee.
FOCUS According to the United Nations Global Compact’s 10 Principles, companies are invited to: WW HUMAN RIGHTS • Support and respect the protection of internationally proclaimed human rights;
• Make sure that they are not complicit in human rights abuses. WW ENVIRONMENT • Support a precautionary approach to environmental challenges; • Undertake initiatives to promote environmental responsibility; • Encourage the development and diffusion of environmentally friendly initiatives.
18 2014: Suppliers Ethical Policy
WW MGTS Ethical Policy is based on the UN Global Compact’s 10 Principles, which stem from the following tools: • The Universal Declaration of Human Rights; • The International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work; • The Rio Declaration on Environment and Development; • The United Nations Convention Against Corruption.
According to the United Nations Global Compact’s 10 Principles, companies are invited to: WW labour • Uphold the freedom of association and the effective recognition of the right to collective bargaining;
• Eliminate all forms of forced and compulsory labour;
• Abolish child labour;
• Eliminate discrimination in respect of employment and occupation. WW ANTI-CORRUPTION • Work against corruption in all its forms, including extortion and bribery.
19 An added value to its partners
MGTS gives far more extended services than a mere “Purchasing Department”
Customers business units Suppliers W W W A strong commit- ment on product quality
Collaborative work W W W in the service of product innovation
Early commitment in W W the management of supplier risks
An access to over W 1,200 customer contact points in 16 countries
20 An added value to its partners W
our commitments in the purchasing process
21 Needs identification AND qualification
MGTS takes an active part in the design and development of products.
WW 3 project planning with internal customers
WW Review of customer needs and drafting of international specifications
WW Market research and co-creation: : MGTS is pro-active (exhibitions, trends, evolutions).
focus made in client approach
• Created in 2014, the Made in Client approach aims to better integrate end customers at various stages of product design process. This collaborative approach allows the sharing of ideas between our design engineers and our customers. After the snow chains and the folding roof box we intend to extend this approach to all our future developments. Objective: To make this approach a recognized label.
22 A range of skills
According to the type of project, we choose the best method to meet the requirements and specifications:
WW international Trading import-export of car parts and accessories.
WW international negotiation and referencing
WW product development desing office, co-design and industry management.
23 Qualification du fournisseur
MGTS includes social and environmental criteria in its supplier selection process:
WW C ontinuous international prospection.
WW Preliminary assessment and site visit for pre-referencing.
WW Integration of Socio-environmental criteria in specifications.
WW For products outside Europe, obligation to perform Social and environmental audits right from the referencing stage and renewed every 2 years.
WW Supplier referencing established process.
WW P revention of interest conflicts.
WW Respect of laws and regulations in commercial relations.
24 focus Social and environmental audits
A social or environmental audit is performed:
• In one or several days; • onsite ; • by a recognised third-party organisation.
Supplier’s referencing is conditionnal to their positive socio-environmental performance.
25 Supplier relationship management
WW F air treatment of partners.
WW For continuous improvement, implementation of a Quality control plan based on risk mapping per product category.
WW Supplier performance follow-up
WW Market trends Follow-up and sharing.
WW Formalisation : contracts, ethical policy, assessment questionnaire.
WW Measures to Avoid economic dependence.
26 WW partners hips with our suppliers.
WW Enhance our supplier’s innovation capacity.
WW C ollaboration with our suppliers to improve products and productivity.
WW S upplier support on social (labour conditions, human rights...) and environmental (chemical products, material...). matters
27 Product quality
Because we care for customer needs and we strive to deliver the best quality standards, we endeavour to :
WW Respect specifications and communicate on them.
WW Implement Regulatory surveillance.
WW Comply with legal requirements.
WW Implement and follow a Quality control Plan based on Risk mapping.
WW Manage traceability.
WW T est product performance in European notified labs to validate quality requirements.
focus performance test winter tyres
In order to verify the compliance performance present in the specifications, MGTS has mandated a Norauto Wintersys tyre performance test in comparison with the leading brands on the market. The test took place in December 2015 and were conducted by an independent laboratory on the ice circuit in Flaine and Spain. The results show a very good braking performance on snow and wet surfaces.
28 Call for tenders management
We are convinced that competitive procedures are a source of improvement.This is why we regularly challenge our suppliers with an established call for tenders process, based on the following principles:
WW Our purchasing policy is based on Call for tenders.
WW NWe resort to calls for tenders regularly generate competing offers from different bidders.
WW The call for tenders process is built on free and fair competition.
WW Calls for tenders are led by a single international negotia- tion entity, MGTS, which makes relationships with our partners more simple.
29 P roduct design and innovation
Our development teams have three major objectives:
WW The creation of new product ranges (Ex.Electrically assisted bicycles, flexoble roof boxes)
WW continuous improvement
WW Make our products become more and More responsible
focus Continuous and responsible improvement
• We have chosen to raise the exigence level on many products tests to improve the quality of products offered by suppliers. In the case of negative tests, MGTS can help its partners to improve and develop their products.
• In 2015 we redesigned our trolley jack range, reducing their descent speed. This improvment strengthens the safety of users and, to this day, remains a competitive advantage.
30 very responsible logistics
MGTS uses the best adapted transport modes and logistical schemes to meet customer expectations as accurately as possible while taking social and environmental dimensions into account. For this reason, NGTS chooses as a priority less polluting transport modes such as sea and rail transportation as well as inland waterway.
En 2015, MGTS is...
81% of products shipped by rail on the Iberian Peninsula. 57% of products shipped by barge in France. 2 542 trucks avoided on the roads. 508 tons of CO2 avoided. 1 consolidation platform in Shanghai to optimise transport modes and reduce the number of shipped containers. focus Packaging optimisation
MGTS works on the packaging of its products in order to reduce the quantities of waste and to optimise storage and shipping:
• In 2014, the way of packing the bike-carrier cartons has been optimised
• In 2015 an audit has been made on warehouse to rethink the packaging type of certain product families
• In 2016 suppression of material excess on baby seats packs.
31 W
MGTS GENEVA 12, avenue des Morgines, 1213 Petit Lancy - Switzerland
MGTS Shanghai 17 Kaikai Plaza, Wan Hang Du Lu 888, Jing An District - 200040 China
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MGTS NEW Delhi C/o Altios Consulting Pvt Ld - House No 2, 3rd floor - Hauz Khas Village - New Delhi 110016 - India