New Wave Group AB Hållbarhetsredovisning_2017_SV_HQ[1] | Page 11

IMPACT IN THE VALUE CHAIN New Wave Group influences and manages different parts of the value chain to varying extent. Because of the nature of the operations, our efforts are mainly put on sourcing, production and suppliers in the global supply chain. However, some subsidiaries like Seger and Orrefors Kosta Boda have their own in-house production, where we also have direct influence. BUYING OFFICES New Wave Group is never far away from the production. We have our own buying offices in charge of sourcing and production. Our offices are located in China, India, Vietnam and Bangladesh where we have approximately 200 employees. China is our biggest office and country of production. In addition to our main office in Shanghai, where we have been operating since 1992, we have three minor offices in Qingdao, Xiamen and Nanchang. Our procurement strategy is to purchase directly from our suppliers and to cut intermediaries that could jeopardize our control of the supply chain. Based on purchasing volume, about 72 % of the Group’s purchases are made through the buying offices. External purchases usually take place by acquired companies that already had their own established suppliers and CSR functions. GREAT SUBSIDARIES Assortment strategy Product development Education Employee development Information and lobbying Regular self-monitoring LIMITED IN-HOUSE PRODUCTION Regular self-monitoring Waste disposal Choice of energy sources OWN WAREHOUSES AND TRANSPORTATION Choice of facilities Waste disposal Choice of energy sources Choice of routes Choice of transportation means and fuel SUPPLIERS Choice of suppliers Agreements and terms Product development Product quality controls Social and environmental audits TRANSPORTATION PROVIDERS Choice of transportation providers Requirements on routes, transportation means and fuel Regular checks and follow-up SUB-SUPPLIERS Agreements and terms with suppliers Product development CUSTOMERS Communication and marketing Product offers Loyalty programs Dialogue and cooperation with interest groups 11