5. 5.2 Supplier relations management Issues and impacts The GEODIS business model is based on an internal and external ecosystem which allows it to offer its customers a comprehensive end-to-end service. To carry out these operations, the Group relies heavily on a network of suppliers and subcontractors to whom it outsources services. The Group’s purchases fall into fi ve categories: ● subcontracting of transport (air, sea, road and rail), logistics and services relating to maintenance, servicing and work on mobile equipment and installations. These purchases are made from small local players (small and medium-sized enterprises, etc.) as well as from international transport and logistics groups; ● temporary labor purchased from multinational groups, regional franchise networks or family businesses; ● energy purchased locally from national players or subsidiaries of international suppliers; ● road vehicles and industrial equipment that are central to Group businesses and to the challenges of environmental transition. As such, these purchases are evaluated in terms of full lifecycle cost (TCO – total cost of ownership) or usage performance (TCU – total cost of use); ● indirect purchasing, including general procurement, IT and telecommunications (equipment, software and services) and intellectual services. The risk of suppliers and partners failing to respect human rights, the environment or business integrity could affect GEODIS’s performance and customers’ trust. The Group limits this risk by strengthening its selection process and the CSR assessment of suppliers and partners. In 2024, responsible purchasing was added to the GEODIS risk map. Governance In 2024, GEODIS expanded and restructured the Group Purchasing Department, giving it the following responsibilities: ● drawing up a roadmap for responsible purchasing, ensuring consistency with the Ambition 2027 strategic plan; ● structuring sourcing and supplier management to encourage synergies at line of business and regional levels. 250 suppliers operating across the Group are managed at continental or national level; ● monitoring the purchasing function’s economic and CSR performance, using processes, tools, norms and standards specifi ed by the Group. This organization is backed up by a team of 225 purchasing professionals working throughout the organization, who defi ne strategies specifi c to their activities/lines of business and implement the Group’s objectives and programs. Dialogue with suppliers is carried out both nationally and locally, with supplier reviews as well as supplier days, such as the Carrier Affi nity Conference, which brings together the Group’s partner carriers in the United States each year. Key fi gure ➔GEODIS purchasing teams are present in 32 countries and employ more than 230 people. Policies The approach revolves around the following policies: ● the Business Partner Code of Conduct, revised in 2024, which states that any breach of this Code may result in the suspension or termination of the supplier’s contract; ● the Group Code of Ethics; ● the Ten Principles of the Global Compact; ● “Know Your Business Partner”, a procedure for assessing the compliance and commitment of value chain partners. This procedure must be applied, regardless of country, region or line of business, to all existing and potential third parties (customers, suppliers, service providers, subcontractors and partners, including agents and joint venture or consortium partners) working with GEODIS or on behalf of GEODIS. Action plan Integration of CSR criteria into procurement processes and calls for tender National and local suppliers and subcontractors and those serving multiple entities are selected by purchasing departments on the basis of a set of economic, quality, health and safety, CSR and business integrity criteria, such as: ● health and safety: verifi cation of the presence of a safety management system, an emergency plan detailing actions to be taken in the event of an incident (fi re, serious injury, etc.), provision of road safety training; ● human rights: respect for fundamental texts safeguarding human rights, in particular the prohibition of forced labor, child labor, human traffi cking and discrimination, and respect for freedom of association; ● environment: analysis of energy consumption, CO2 emissions, waste generated, local pollution, reuse and recycling loops; ● social: development of partnerships with disability-inclusive companies (which enable people with disabilities access to employment in conditions adapted to their abilities); ● business integrity and compliance: apply responsible purchasing risk mapping for each category of products or services for suppliers submitting tenders. 2024 ACTIVITY AND SUSTAINABILITY REPORT - 89 EDITORIAL > 1. GROUP PROFILE > 2. GENERAL INFORMATION > 3. ENVIRONMENT > 4. SOCIAL > 5. ETHICS > 6. ANNEXES
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