Worldline - 2020 Universal Registration Document
DESCRIPTION OF THE GROUP’S BUSINESS Procurement and suppliers
In 2020, as part of the Worldline sales and marketing transformation program, global sales campaigns were a major growth lever to generate new business internationally using a digital marketing strategy to boost the attraction of visitors and prospects to feed the sales funnels across the business: The sales campaigns, boosting the sales on Worldline’s 12 ● most promising solutions in terms of high growth potential and multi-country reach using flash campaigns! In 2020, the restrictions arising from the pandemic, led to most face to face events being cancelled. The marketing team at Worldline quickly adjusted to this new scenario by launching new digital sales channels and developing nurturing activities in a digital/virtual way to maintain the annual ambition of lead generation and awareness. One
example is the webinars channel, built to promote Worldline’s thought leadership and solutions that help its customers to keep their business up and running; The development of key partnerships is an important lever ● to consolidate Worldline ecosystem, in payments and beyond, while selling with and through partners. Recognising the important of fintech partners, Worldline organizes the e-Payments Challenge to co-create solutions together with clients and start-ups, and to get prepared for the future challenges related to payments. As of December 31, 2020, the Group had approximately 1,150 employees to handle sales and sales-related activities (sales representatives, business development, pre-sales, bid management and marketing).
Procurement and suppliers C.8
The Procurement Function actively contributes to the operational and economic performance of the Group by adopting a systematic total cost of ownership method, ensuring the continuity of supplies for best operating conditions as well as the quality of products and services purchased. To meet the performance objectives set by the Group, the Procurement Function defines strategies per procurement category and implements optimization levers, aiming at reducing the external spend, this being done in collaboration with the Requestors. The Procurement Function integrates 2 levels: a Group and a Regional level. The main principle is that procurement activities are centralized and operated at the Group level when it creates value for the Group (especially for purchases with global suppliers, similar needs, massification potentials, synergies…). Therefore, the Procurement Function manages at the Group level the category strategies, overall procurement performance, the suppliers “risks and performance” and sustainable purchasing. The Group level organization includes: A Chief Procurement Officer (“CPO”); ● A Procurement Excellence Office; ● 4 Category Management teams (IT, Workforce, Indirect, ● and Manufacturing). Procurement activities are decentralized at the regional level when proximity is prevailing (local market, supply, local specificities), but remains still coordinated by the Group level. The Procurement Function analyses markets, selects and manages the Group’s relationships with the suppliers of the externally-sourced goods and services needed for its business and internal requirements.
The primary categories of products and services sourced externally, which account for the majority of the procurement costs, comprise the types of items that are typically sourced in the IT services sector, particularly IT hardware and software, subcontracted services such as software development and maintenance and telecommunications services. The Group uses these products and services in connection with its data centers and project development needs. The Group’s main suppliers of IT hardware and software are HPE, HDS, IBM, Dell, Oracle and SAP. The Group’s business involves extensive data processing which requires bandwidth intensive telecommunications services, its main providers of which are Orange, Proximus, Colt and Verizon. Other important categories of products and services include POS Terminals and their component parts, and, to a much lesser extent, hardware used for the manufacture of the Group’s connected vehicles products and other M2M and “connected” solutions. The Group designs most of its payment Terminals and related products in-house and outsources their manufacture to multiple contract manufacturing companies, including Toshiba Tec, Flex, and Connectronics, located in Asia and Eastern Europe. The Group procures the few Terminals that it does not design itself from Ingenico, VeriFone and Pax. The Group is also a substantial consumer of printing and postal services, particularly in its e-Government business sector (mainly its automated traffic and parking enforcement solutions) and bank processing activities in Belgium. It has subcontracting relationships or contracted partnerships with La Poste, Bpost, PostNL and Speos in relation to the Groups’ service delivery. One of the duties of the Group’s Procurement is to mitigate business risk. Further than only striving to insure the permanence of cost negotiations, agreements are also implemented to reduce risks of supply shortages, to reduce ambiguity of services supplied and to carefully manage any over-dependency on its supplier. The Group aims to identify critical points in the supply chain and develop aims to guarantee multiple components and service suppliers.
Universal Registration Document 2020
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