Godrej & Boyce builds a strong supply-chain network to drive sustainable growth through its 'Beyond Sourcing' initiative

- About 25 % of their MSME suppliers from across India have benefited from the company’s initiative to create efficient, accountable, and resilient supply partners

Mumbai, 26th May 2022 – Over a decade ago, Godrej & Boyce, the flagship company of the Godrej Enterprises Group, announced that its marquee initiative for suppliers, ‘Beyond Sourcing’, has strengthened its supply chain by onboarding 25% of their MSME suppliers and plans to induct 50% more by 2030. With MSMEs being the backbone of the manufacturing industry in India, Godrej & Boyce has created a robust suppliers’ network benefitting from the various initiatives taken under this initiative. The company also recently announced its plans to double its revenues in the next 5 years, and initiatives like Beyond Sourcing will be instrumental in driving this growth by creating a more accountable, efficient, resilient, and sustainable supply chain.

As a part of this initiative, suppliers are upskilled in basic management nuances to enhance productivity through robust systems, which can, in turn, be transcended to uphold sustainable practices in terms of Lean & Green Management, leading to ZED (Zero Effect Zero Defect). The company has set up an internal rating system where each supplier receives periodic feedback on operative areas that need improvement. G&B further evaluates its suppliers on a variety of factors, including quality management, logistics, manufacturing, and environment.

The company believes in creating a sustainable value chain and has been engaging with its suppliers to ensure a green supply ecosystem throughout its manufacturing locations. Godrej & Boyce has also collaborated with various industry forums as well as mentorship from the company’s senior management. At the vendor's end, the company has established a sustainability framework and begun training sessions that cover all aspects of the CII's GreenCo certification. So far, about 50 suppliers have already received the GreenCo certification , a testament to G&B’s successful commitment towards the environment and a step forward in greening their supply chain.

Speaking about this initiative, Zurvan Marolia, Senior Vice President, Head of Manufacturing Council and lead of the initiative, Godrej & Boyce, said, “Sustainability finds relevance in operations only when we incorporate green tenets in our entire organizational framework. At G&B, we have been striving to reduce our carbon footprint on all fronts. An important aspect of sustainability is the supply chain, and The Beyond Source initiative, which has been active since 2007, has seen immense success. It has brought us like-minded partners who share our core values. MSMEs are the backbone of the Indian economy and are crucial to making India the next big global manufacturing hub. Hence, it is only by helping them green their processes that large organizations can green their supply chain and be truly sustainable. This initiative is a great step forward, and we will continue looking at initiatives that help flourish our ecosystem of partners and keep us sustainable. By 2030, we hope to induct 50% more MSME partners in the initiative.”

Some of the key initiatives under the Beyond Sourcing initiative include Competitive solutions - Project Saksham, Suppliers’ involvement in New Product Development, CII-Godrej Vendor Cluster and CII-Godrej SME Business Excellence Cluster.

About Godrej & Boyce Mfg. Co. Ltd.

Godrej & Boyce (‘G&B’), a Godrej Enterprises Group company, was founded in 1897, and has contributed to India’s journey of self-reliance through manufacturing. G&B patented the world’s first springless lock and since then, has diversified into 14 businesses across various sectors from Security, Furniture, Aerospace to Infrastructure and Defence. Godrej is one of India’s most trusted brands serving over 1.1bn customers worldwide daily. For more information, visitwww.godrej.com .

Annexure

Key initiatives under the Beyond Sourcing Initiative:

Competitive solutions - Project Saksham: The aim of this initiative is to work closely with the suppliers / partners to create joint problem-solving exercises and set processes to create greater value from suppliers.

Suppliers’ involvement in New Product Development: In order to reduce the concept to market time for new products, Godrej & Boyce involves its partners to leverage their expertise on subjects such as manufacturability right from the design stage to provide first time right, best-in-class products to its end-customer. Over time, this initiative has not only helped the company save its resources in terms of time and capital but also has been successful in introducing new innovations driven by the suppliers in its processes.

CII-Godrej Vendor Cluster: The initiative undertaken in collaboration with CII aims at increasing business output and improve the quality by enabling the suppliers to introduce innovations, improve the inventory-turnover ratio, space utilisation and delivery schedules, as well as reduce energy consumption. CII-Godrej SME Business Excellence Cluster: To widen the perspective of SMEs beyond manufacturing excellence, this program was designed in collaboration with CII to train SMEs on other aspects of business like Visioning, Strategic Business Planning, Stakeholder Management, Customer management & Systems Management. This 18-month long program was aimed at the operation heads & SME owners like an on-the-job MBA module.