Our success is driven by strong partnerships with suppliers who share our commitment to quality, timely delivery, and sustainability. By fostering close collaboration across our value chain, we work together to build a better, more sustainable future.
Supplier Day
We constantly strive to strengthen our relationships with our suppliers, align our business goals and discuss mutual opportunities, expectations and challenges. Our Supplier Day in 2024 was one such event where we worked towards solidifying partnerships and driving mutual success. The event spotlighted our commitment to business growth, unveiling abundant opportunities for our suppliers through innovative developments, while underscoring our high standards in quality, cost efficiency, and sustainability. During the event, we not only acknowledged and recognised the contributions and achievements of our key suppliers, but also dedicated time for our initiative on the ‘Supplier Innovation Hour 2023’ showcasing our commitment to supporting our innovative suppliers.
Supplier partner participants
Digitalization
Schaeffler India continues to advance the digitalization of its purchasing processes through an integrated technology ecosystem. The journey towards implementation of SAP S/4 HANA ERP software marks a significant upgrade from the previous SAP R/3 system, streamlining purchasing operations across the organization. It integrates seamlessly with our core purchasing platforms: SupplyOn for Production Material (PM) and Coupa for Non-Production Material (NPM).
SupplyOn, our established partner since 2003, facilitates efficient supplier collaboration through digital processes for sourcing, document management and performance monitoring. Complementing this, Coupa provides a modern cloud-based platform that enhances transparency in non-production material purchasing activities.
To further optimise efficiency, we have implemented Robotic Process Automation (RPA) through our PAT (Purchasing Automation Tool) solution, automating routine tasks across our global purchasing operations. This comprehensive digital infrastructure supports data-driven decision-making while reducing manual workload, thereby enabling us to maintain stronger oversight over the entire operation.
Sustainability practices
Our sustainability commitment extends to our purchasing practices and supplier relationships. We have implemented a robust Supplier Code of Conduct that emphasises ethical practices, environmental stewardship and social responsibility. We employ a systematic evaluation process, beginning with our Supplier Self-Assessment Questionnaire, which enables us to measure and monitor sustainability performance across our supplier network. Building on this foundation, our Sustainability Target Agreement sets specific, measurable objectives for suppliers, with a particular focus on renewable energy adoption and carbon footprint reduction. The Sustainability Target Agreement ensures that Schaeffler India’s commitment to carbon neutrality targets is aligned within its supplier network.
Through strategic collaborations and resource sharing, we support our suppliers to adopt sustainable practices, thereby aligning our supply chain with our vision of a sustainable future. This proactive approach enhances our operational efficiency while promoting a circular economy.
NQC Supplier Assurance Submission
Innovative initiative to make bricks from casting moulding sand
At Schaeffler India, Supplier Innovation Hour has become a catalyst for driving creativity and continuous improvement among our suppliers. This initiative encourages suppliers to propose innovative ideas that enhance efficiency and sustainability. One such innovative idea was the development of bricks from casting moulding sand, a by-product of the manufacturing process. The usual process in casting results in wastage of ~50% of the casting moulding sand. With our supplier’s innovative idea, the waste was reused for making bricks. By transforming waste into valuable building material, we can significantly reduce our environmental impact. Such projects encourage collaboration with our suppliers and encourage them to adopt similar innovative practices. Schaeffler India also benefitted from this innovative process as we used these bricks for our new greenfield project, further emphasising our commitment to sustainability and transition to a low-carbon future.
Our journey towards carbon neutrality by 2040 has entailed the development of a comprehensive supplier development programme that aligns with Schaeffler's sustainability vision. Through a structured Supplier Code of Conduct and Self-Assessment Questionnaire, we continue to support our diverse supplier base, particularly small and medium enterprises, to inculcate sustainable practices into their operations.
We have established carbon reduction targets for key suppliers, with special focus on hard-to-abate sectors like steel manufacturing. Through dedicated training programmes and incentives for renewable energy adoption, we have created a balanced approach for suppliers to ensure accountability across their value chain.2024 marked significant progress in our supplier development initiatives, including enhanced digitalization of our processes and successful export promotion.
Our commitment to localisation has yielded remarkable results. While we remain committed to strengthen our supply chain resilience, we are also actively participating in the ‘Make in India’ drive to foster the country’s growth and development.
Vinod Acharya
Purchasing
