Collaboration with subcontractors

Third-party manufacturing constitutes an integral part of our production strategy and is used flexibly for our products and markets. For example, we may use toll and contract manufacturers when entering new markets or introducing new products and technologies. In these cases the corresponding production volume is often still small. In other circumstances, the use of external partners helps to optimize our production and logistics network and to increase resource efficiency. Currently, we source about 10 percent additional annual production volume from toll and contract manufacturers.

Our requirements regarding quality, environmental, safety and social standards are an integral part of all contractual relationships and order placements. We monitor the implementation of our standards through audits carried out by our own staff and, increasingly, by specialized third-party service providers. We aim to establish long-term collaborations with our toll and contract manufacturers in order to achieve the best possible results. In the future, we will also be including them in our environmental data recording systems.

In an initial pilot project conducted in 2011, we defined the parameters for energy, water, wastewater and waste together with selected subcontractors and recorded the respective data. In 2012, the Beauty Care business sector further developed the cooperation with several of these subcontractors. On this basis it is now possible to record and analyze both environmental data as well as production performance data on a monthly basis.

Last updated: March 6, 2013