Before arriving at the Miele sites, the materials and components needed to produce domestic appliances and commercial machines will have already passed through multiple processing steps. Miele's supply chain stretches all the way from resource extraction and the processing of raw materials and recyclates to the production of components and appliances. Miele purchases both raw materials, such as stainless steel and plastic, and electronic components from its suppliers. Additionally, products such as microwave ovens and coffee machines are manufactured externally in accordance with Miele specifications.
In the reporting period, Miele purchased 1.4 billion euros of materials, components and domestic appliances from other companies. This figure included 900 million euros of production materials.
The relevance of sustainability criteria within the value chain varies depending on the current phase. The impact of raw materials on nature makes these inputs a major sustainability issue. Energy consumption and working conditions are relevant aspects in virtually every-phase, most notably in the extraction and processing of raw materials and in the production of components. Procurement also faces numerous challenges in terms of availability and supply certainty, both of which are becoming more and more critical in light of increasing global demand and growing resource scarcity.
Because Miele's footprint throughout its supply chains is affected not only by the type and quantity, but also by the source of the materials it uses in production, transparency and traceability in these supply chains is another crucial issue. Due to the globalisation of procurement markets, the complexity of this challenge continues to increase.
One of Miele's fundamental goals is to develop transparency in its value chain while identifying and addressing critical issues. Resource conservation measures, carefully scrutinised materials choices and the use of secondary raw materials all help to lower sustainability risks.
In addition, the selection of new suppliers and monitoring of active suppliers at Miele are both guided by a comprehensive supplier management system. Not only does this system address aspects such as delivery capacity, quality and price, it also works to ensure compliance with required sustainability criteria. In the years ahead, the supplier management system will focus on using these same standards to screen, qualify and integrate new suppliers from new regions.