Supplier Improvement Activities

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The primary purpose of Arçelik Purchasing department is to create a portfolio of active suppliers who create synergy, increasing the high-quality manufacturing by considering the main elements competition and continually improving to reduce the manufacturing and operational cycles. Arçelik Purchasing is also focused on cooperating with the suppliers based on mutual trust and an approach of shared objectives. In 2019, Supporting Industry Development Department continued its efforts to help suppliers improve their infrastructures and technical competencies. In this sense, 1,161 supplier visits were conducted.

The Company defines training as one of the major stages of supplier development. In line with this understanding, 13 trainings were organized for the suppliers in 2019. 1,874 person/hours of training was provided for 504 participants on energy efficiency, government incentives and supports, mold maintenance and polishing, plastic injection, coating, welding, quality, manufacturing technologies and efficiency.

Furthermore, efficiency and quality projects were carried out to enhance the quality performance of suppliers. Within the scope of the projects to increase automation and efficiency of the workforce, 87 robots were activated by 22 suppliers and workmanship savings equal to 109 operators was secured. In 2019, a total of 143 projects were conducted with 62 suppliers. 132 energy projects were implemented and annual energy savings of 11.66 million kWh were ensured to improve energy efficiency. This prevented 5,330 tons of CO2 emissions. 365 tons of cardboard and 238 tons of plastic bags were saved upon packaging improvement efforts. Arçelik has an approach of collaboration and “partnership” with its suppliers. With this principle, workshops were organized to secure a better competitive edge in the market. During these workshops, projects were developed from innovation perspective. 161 workshops were organized within the year with a focus on process improvement and alternative processes. 235  otential projects were selected for further improvement.

Arçelik also maintains an eco-friendly position in product procurement. The Company complies with all regulations applicable to the complete product lifecycle (from the design phase to disposal). Local regulations and EU directives to ensure alignment of the regulations in member countries are implemented. All manufacturers and suppliers are included in the process. The suppliers are expected to comply with Arçelik’s list of banned/limited materials to ensure that the customers are provided with eco-friendly products.