1. Profile and ambition Developing expertise in core businesses and supporting Group customers The first pillar for GEODIS consists of capitalizing on the knowhow and value creation of its four lines of business, whose diversity, complementarity and policy of business excellence should ensure constant commercial development that exceeds that of its market. The Group intends to ensure the growth of its core businesses by supporting the development of its customers, by bringing more value to its customers and by taking account of the specific nature of each market. Each of these lines of business is organized according to its specific characteristics so as to optimize the level of service to customers. Changes were made in the organization of the Group early in 2023, with the creation of a new Europe region, a France and North Africa region and a Global Contract Logistics line of business, increasing the Group’s capacity to serve its customers, while making the most of its regions and lines of business. This development enables GEODIS to combine expertise in its lines of business with detailed knowledge of regional conditions to achieve ever greater commercial and operational efficiency. Each core business also has its own capabilities for investment, combining different modes of holding and using assets to suit the situation (the “asset right” notion) and the spirit of innovation that drives the Group. Speeding up the digital transformation Innovation and investment are central to the second pillar of GEODIS’s strategy, digital transformation. The Group focuses particularly on innovation to enhance its customer service offering, and to simplify these services as well as making them more accessible. On the one hand, this transformation relates to the support functions in their drive for business excellence, management and internal control via a dedicated transformation program called Odyssey. The pooling of data enables a more detailed performance analysis of the Company’s activities and the development of new opportunities for cross-selling. On the other hand, digital transformation affects the lines of business at the heart of their operational processes: its purpose is to enrich their ranges of services with innovative digital solutions to create more value for the Group’s clients and improve access to its services. This transformation is based on a set of functional and technical solutions directed by the Digital and Technology Department, including the Data Office and the Digital Factory, to capitalize on data, which is a key asset in the Group’s business. For example, Upply, a digital marketplace that compares freight rates in real time, combines business expertise and data science to meet the demands of a changing logistics market. The start-up has continued to grow since its launch in 2018 with the addition of new features on the matchmaking platform for transporters and shippers. In 2023, Upply launched Connect, a new platform that puts shippers, carriers and freight forwarders directly in touch with each other. Continuing a proactive, targeted external growth strategy The third pillar of the strategic plan is a continuation of the Group’s external growth policy, applying a proactive, targeted approach to support the Group’s growth and position it as a leader in sustainable logistics. The desire for expansion is intended to provide a better response to the demands of the Group’s customers by supporting them in the development of their businesses with an end-to-end service, however their supply chain is configured, but also to broaden the range of services in line with the Group’s CSR ambitions, while strengthening its geographical footprint in strategic markets (North America, Europe and South-East Asia). In a sector that is still largely fragmented, GEODIS seeks to consolidate its positions by targeting companies whose activities are consistent with the Group’s aim of offering endto-end service throughout the supply chain. Thanks to the acquisition in 2023 of the German company transo-flex, which provides temperature-controlled last-mile transport for the pharmaceutical and healthcare sectors, for instance, GEODIS will be able to offer an end-to-end temperature-controlled network between Germany, Europe, Asia and the United States. 1.6 Innovation GEODIS’s capacity for innovation is a key differentiator compared to its competitors, a means of creating value for its customers and a major lever for growth and performance. Data management and digital technologies are two fundamental dimensions of digital transformation. The support functions will benefit from this transformation in terms of business excellence, management and internal control, as will the lines of business in terms of their operational processes and new offerings. The Group focuses on three main areas of innovation: ● digital technology, at all stages of the Group’s processes, from customer relations to delivery; ● robotics, a powerful lever for operational performance and making tasks less arduous; ● decarbonization, to address the climate issue (discussed in section 3.1, dedicated to the climate). 18 - 2023 ACTIVITY AND SUSTAINABILITY REPORT
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