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Interview: Sustainable supply chains at Bosch

01.05.2025

Press-Feature

Business/economy

Interview: Sustainable supply chains at Bosch

What’s involved in purchasing and logistics at Bosch? Flemming: At Bosch, purchasing and logistics are combined in supply chain management. This ensures stable and sustainable supply chains from procurement source to delivery. For Bosch, this is central to improving quality of life through technology and to the goal of conserving natural resources. In our supply chain management, we work closely with our roughly 240 manufacturing plants and nearly 250,000 customers worldwide. The task is to ensure the availability of components, raw materials, and products in line with customer demand. Here, high quality and competitive prices are important aims, which we pursue in collaboration with our supplier network of some 35,000 manufacturers and service providers. In addition, our supplier network plays an important part in Bosch’s competitiveness and innovativeness. How important is sustainability for supply chains? Flemming: Bosch takes its entrepreneurial responsibility very seriously. This is why its long-term strategy aims to reconcile economic, ecological, and social concerns. With an annual purchasing volume of roughly 50 billion euros, this responsibility reaches far beyond our factories’ gates. Supply chains that manifest a high level of sustainability and social standards are therefore very important for Bosch. Together with our core suppliers around the world, we work to use raw and other materials sparingly, as well as to systematically reduce carbon emissions. We want to achieve this through measures such as consolidated shipments and optimized packaging. For us, there is no question that the only way companies can survive in global competition – and thus contribute to global prosperity – is on the basis of robust and sustainable supply chains. How does Bosch’s supply chain management respond to geopolitical upheaval and increasingly extreme weather events? Flemming: Stable supply chains are the bedrock of a sound economy. For Bosch, this means that supply chain management also has to anticipate ever new developments in global trade. In this respect, we pursue a local-for-local strategy, making our global supply chains shorter, more flexible, and thus less vulnerable. With our global manufacturing network, we produce where our customers are. Anticipatory supply chain risk management allows Bosch to react in good time to the risks arising from factors such as supply bottlenecks, natural disasters, and blocked shipping routes. Business relationships based on partnership and respect are crucial in allowing us to work hand in hand with our suppliers if global supply chains or shipping routes are disrupted in this way. In addition, a high degree of digitalization in our supply chains helps us gain clarity in real time about inventories and requirements – from procurement to manufacturing operations to customers. How does Bosch ensure compliance with legal requirements and with environmental and social standards in its supply chains? Flemming: As a global supplier of technology, Bosch purchases from companies and service providers in roughly 60 countries. As most of the master data and processes in our supply chain management are digitalized, we are in a position to comply with diverse regulatory requirements. In one respect, for the sake of competitive prices, digitalization helps us cushion the effect of extra administrative work in our supply chains wherever possible. At the same time, it makes it easier for us to comply with reporting requirements and to track sustainability targets in the supply chain. So if suppliers deviate from our quality standards, we give them additional training. We also check compliance with environmental protection regulations and respect for human rights – and this at more than 100 business partners each year. When it comes to reducing carbon emissions, the requirements we set as a manufacturer and supplier have an impact on thousands of suppliers and sub-suppliers of our own – thus multiplying our joint contribution to mitigating global warming. What are the latest trends in purchasing and logistics at Bosch? Flemming: Automated planning is playing an increasingly important role in supply chain management at Bosch. The aim is to be able to react even better and more effectively to external factors such as flood damage at suppliers or supply shortages in the market. In keeping with that, we’re extending the integrated planning systems that help us quickly adjust our sources of supply, shipping routes, and choice of manufacturing site if there are any bottlenecks. In our workflows, we systematically rely on cross-function, end-to-end processes, which we are continuously improving. One important element is end-to-end electronic data exchange – starting for example at our suppliers through the SupplyOn digital platform, and continuing from there via our plants to our customers. We expect that the use of generative AI will soon take this automated planning to a new level, and further enhance our supply chains. Examples of where we’re already using AI include voice recognition on supplier hotlines and the extraction of data from drawings and specifications in quality assurance. Dr. Arne Flemming is the head of supply chain management at Bosch. In this function, he is responsible for managing the Bosch Group’s purchasing and logistics with its roughly 35,000 associates worldwide.

Dr. Stefan Hartung, member of the board of management of Robert Bosch GmbH and c ...

24.01.2019

Press-Feature

Business/economy

Dr. Stefan Hartung, member of the board of management of Robert Bosch GmbH and c ...

Strategy: “We want to be the go-to partner for electric driving, and to be the leader in the mass market for electromobility that will emerge after 2020.” “Electromobility has a home: Bosch.” “With its economic and technological clout, Bosch is driving forward the breakthrough in electromobility.” “Our electromobility strategy goes far beyond the powertrain. Bosch’s expertise covers the entire electromobility ecosystem – from proven components for electrified applications to digital connection with the recharging infrastructure.” “Systems expertise, energy efficiency, and standardization are the three pillars of our electromobility strategy.” The acquisition of EM-motive GmbH: “For Bosch, the complete acquisition of EM-motive is the next logical step on the path to becoming the market leader for electromobility. It’s a chance to establish an even broader presence in the market.” “Having acquired EM-motive, we will in the future cover the entire value stream and be able to offer electric motors from a single source.” The market: “The global market for electromobility will grow rapidly over the next few years. We forecast that around 20 percent of all new vehicles will be hybrids or electric cars by 2025. By 2030, that figure will be more than 25 percent.” “Bosch electrical powertrain components already feature in over a million vehicles around the world.” “No other company is working as broadly on electromobility as Bosch – from bicycles to trucks.” “Bosch already has a leading position in China, the world’s largest market for electromobility. In Europe, Bosch supplies the powertrain system for the continent’s largest electric-vehicle fleet, the German Post Office’s StreetScooters. “There’s a saying in our company that there’s no car on the planet without a bit of Bosch in it. In the future, this will be extended to include electric cars. Wherever you look under the hood – be it in Asia, Europe, or North America – you’ll always find the Bosch armature in a circle.” The company’s product portfolio: “Our portfolio stretches from power electronics, to 48-volt mild hybrid batteries, to electric motors and electric axle systems.” “Bosch’s e-axle is the advent of the all-in-one principle in the powertrain. For automakers, it makes electrical powertrains more efficient and affordable. This will allow the market penetration of electromobility to continue to gain speed. The e-axle is key to making Bosch the go-to partner for electromobility.” “We have to understand battery cells technically, not necessarily make them ourselves. Cell production is not decisive for our success.” Customers: “Bosch will play a leading part in shaping the dynamic transition to electric driving. In this transformation process, we will be there to support our customers with knowledge and technology.” “Our customers benefit just as much from this market experience as from our global research and development network. The latter allows Bosch to carry out projects flexibly and close to its customers, whether in Asia, Europe, or North America.”