wÜrth industrie service with heart and mind....ecology economy social issues our partners wÜrth...

Ecology

Economy

Social issues

Ourpartners

WÜRTH Industrie Service

With heart and mind. Diligence, responsibility, insight. Our commitment to sustainable development.

2 With heart and mind. – Diligence, responsibility, insight.

Contents3 FOREWORD

4 DILIGENCE Our approach Our structures and responsibilities Ourfieldsofaction

10 RESPONSIBILITY Corporate and management culture Sustainable,profitablegrowth Quality and process management Compliance and risk management

18 INSIGHT Customers and core business Suppliers–wearetheinterfacebetweenmanufacturersandcustomers Sustainable system and product environment Sustainable logistics Environmental management When management becomes a culture Fellowhumanbeings,socialissues&education 32 ACTIONS AND PROSPECTS

3With heart and mind. – Diligence, responsibility, insight.

More and more people are asking themselves: Whatwillthefuturebring?Icantellyouonething–evenwedonothaveapreciseanswertothisquestion.

Global issues such as climate change, the scarcity of natural resources, ever shortereconomic cycles, the increase in global population and demographic change have an impact on markets and patterns of demand,presenting new challenges for our businessactivities. As a customer, supplier, partner,employeeorinterestedmemberofthepublic,you justifiably expect us to provide definitemeasures and responses. Because you paymoreandmoreattentiontohowwedealwiththesenewchallengesandhowsustainablywemanageourenvironment.

This makes sustainably profitable businessandgrowthoneofourkeyissues.Sustainableeconomicactivitiesgohandinhandwithlong-term healthy and reliable business relations.We believe that sustainability is a strategic factor of success, a significant competitiveadvantage and the basis of all our businessrelations.

Aspioneers intheareasofsustainabilityandC-Parts management, we wish to continuesuccessfullyshapingourbusinessandcombineitwithlong-termfutureperspectives.

For us, sustainable, responsible action by all employees and high standards regarding thecarefuluseofall resources in linewithacompany's economic objectives are more than justafadortrend.Rather,theyformthebasisofourdailyactivitiesandare the foundationofourdecisions.Anelementaryaspectofthisis that we continue to develop our activities,standards and guidelines to suit the changing conditions.

Inthisbrochurewepresentourcontributiontomakingbusiness relationswithyousuccessfulinthelongtermandensuringthattomorrow'sworldremainsworthlivingin.

Rainer BürkertExecutiveVicePresidentoftheWürthGroupGeneralManagerofWürthIndustrieService

FOREWORDDEAR READERS,


An independent subsidiary of the WürthGroup,weareresponsibleforglobaldeliveriestoindustrialmanufacturingcompanies.Our core competences include automated, productivity-optimised supply solutions,individually tailored logistics concepts and integratedsupplystrategiesforDIN/standardparts, operating supplies, special parts and partsdesignedasperdrawings. We are available in person to our national and internationalcustomers inover35countries.Ourmainconcernistofunctionasacompletelyreliable C-Parts partner for our customersas part of the "C-Parts. With Certainty."brand. People and our environment are atthecentreofall theseactivities.Thisenablesour corporate actions to accommodate economical,ecologicalandsocialissues.

Thisconsistencyisbasedonfuture-orientatedandsustainableactionacrossalllevelsofourbusinessrelations.

The core elements of our corporate andmanagement culture are trust, respect, gratitude and recognition. Furthermore, ourability to assume responsibility for our ownactions and to compare the concerns of allinterestgroupsequallyregardingprofitability,community and the environment reflect ourfundamental understanding of the issue ofsustainability.

We don't just talk about these values.

In our eyes, responsible treatment of ourcustomers, suppliersandemployees,aswellas the region, society and our environment, is indispensable.

We live these values – heart and mind.

DiligenceOUR APPROACH

Customers

Suppliers

Region Community

Employees

Ecology Social issues

Economy


GROUNDBREAKING"Wearestillrightatthebeginning.Alloureyesshouldtwinklewithboundlessjoyaboutwhatwecanstillcreatetogetherinthefuture."

Prof.Dr.h.c.mult.ReinholdWürth


Würth GroupThe Würth Group is in principle a familybusiness. ReinholdandCarmenWürth havetransferred their equity rights to four familyfoundations. Rights, duties and tasks aredistributed between the Supervisory Board,Advisory Board, Central Managing Board and divisionmanagers.Thisisbindinglyregulatedby themostcurrentversionof"Compendiumof the Würth Group legal structure". Thisfinely balanced power distribution systemprovides high security against undesirable developmentsofanykind.Thehighestbodyis thefive-memberSupervisoryBoard.Activebusiness is monitored and supported by the nine-memberWürthGroup Advisory Board.Business policy guidelines are devised by the Central Managing Board and approved by theAdvisoryBoardduringannual planning.The Supervisory Board has the power ofveto in accordance with the "CompendiumoftheWürthGrouplegalstructure".Divisionmanagers are responsible for implementingstrategic goals. In doing so, the CentralManaging Board and division managers workcloselywiththeAdvisoryBoard.

Würth Industrie Service and Würth Industrial NetworkAllManagingDirectorsofGroupcompanies,including those of Würth Industrie Serviceand the companies of the Würth IndustrialNetwork,areobligedtoexecutethedirectivesoriginating from the places mentioned aspreciselyaspossible.CorporatephilosophyisbindingcorporatelawinallGroupcompaniesathomeandabroad.Theentiretreatiseshouldbe applied correspondingly to the operating proceduresofeachGroupcompany.

Sustainability responsibilitiesSustainabilitymanagementisfirmlyembeddedwithinthecompanyandcentrallylocatedwithinCompany Management. All departmentsand therefore all department managers areresponsible for implementing sustainabilityissues in the relevant operating areas and developingcorrespondingobjectives.

Thepeopleresponsiblemeetonceayearforascheduledvotetofirmlyembedandadvancesustainabilityconcepts.

Equally,sustainabilityconceptsandimportantcurrent sustainability issues are discussed during Company Management meetings at regularintervals.

AnIntranetplatformforallemployeesservesas a reference work for sustainability andmakes information freely accessible at anytime.Thecontentspresented in thisbrochurearealsopublishedexternallyasasummaryonthe company website www.wuerth-industrie.com.

DiligenceOUR STRUCTURES AND RESPONSIBILITIES

FAMILY BUSINESS"Weleadthroughvisionsandfromthemdevelopcommonobjectivesandprinciples."

Prof.Dr.h.c.mult.ReinholdWürth


Supervisory Board5 members

Advisory Board9 members

Central Managing Board4 members

Executive Vice Presidents manage the strategic business areas

Würth Industrie Service General Management *

12 members

Würth G

roupW

ürth Industrie Service

RainerBürkertisoneoftheExecutiveVicePresidentsandisresponsiblefortheDivisionIndustryinternational

General Manager Rainer Bürkert (Company Management spokesperson) General Manager Eberhard Scheuber (Sales)GeneralManagerRalfGehringer(Finance)GeneralManagerChristianSchorndorfer(Sales/KeyAccountsdepartment)General Management Dennis Birresborn (Technical department)General Management Helmut Eisenkolb (Logistics)General Management Martin Jauss (Marketing and IT department)General Management Jürgen Mayer (Intercompany department)General Management Michael Schubert (HR department)General Management Jürgen Metzger (Internal Sales department)General Management Marcus Otto (Purchasing department)General Management Jochen Wunderlich (Internal Sales department)

Managing Directors oftheoperatingcompanies(over400inover80countries)

*orGeneralManagementoftheparticularcompaniesoftheWürthIndustrialNetwork


DiligenceCorporate governance (principles) • Corporate and management values• Codeofconduct• Quality and process management• Compliance• Risk management• Dialogue• Data protection

Corporate social responsibility (profitability)• Continuousgrowthandlong-termcorporate

success• High innovative capacity• Enthusing customers• Standardisedsystems,serviceandqualityat

an international level• Global supplier structure

Corporate social responsibility (environment)• DINENISO14001certification• Integrated environmental management• Waste management and recycling• Sustainable logistics• Sustainable product and system environment

Corporate social responsibility (employees)• Secure jobs, education and training• Personneldevelopmentwithvision• Work-lifebalance• Family and career• Health management• Flowofinformationandemployeeparticipation• Diversityandequalopportunities• Benefits

Corporate citizenship (community and region) • Art and culture• Socialfacilities• Involvement in the region• Activeprojectwork• Education,cooperationwithuniversities

Responsibility

Insight

We have defined and structured oursustainability approach in various fields of action.

Weareworkingonderivingobjectives for the futurefromthesefieldsofactioninorderto systematically tackle the issue of sustainability.As an international company, we viewthese fields of action in terms of global responsibility forWürth Industrie Serviceand WINWORK® (Würth Industrial NetWORK, association forallcompanies responsible forindustrialcustomerswithin theWürthGroup)companiesspecialisingintheindustrialsector.

WHYFIELDSOFACTION?


OUR FIELDS OF ACTION

CORPORATEGOVERNANCEOur business relations are based on reliability, trust and longevity. We wish tocollaborate, grow and create values withourcustomers,employeesandpartners.Ourbusiness is based on legal compliance, both internallyandexternally,inaccordancewithnationallawandthevaluesofthecorporatephilosophy and management culture as a company in the Würth Group. Generalcodesofconductandguidelineswithineachdepartment result in conscious actions by every employee and the internalisation ofvalues. Quality and process management,which concerns the optimisation of allinternalprocesses,alsorepresentsoneofourkeyprinciples.

PROFITABILITY"Growthwithoutprofitisfatal."(Prof.Dr.h.c.Reinhold Würth) Westriveforcontinuousgrowthandagaininmarket shareaccompaniedbymaximumreturns and an appropriate equity ratio.Growth is the driving force for furtherinvestments in product and system innovations as well as new technologies. Innovationsresult in sustainable customer retention and

the acquisition of new customers. Due toour strong sales-orientation, we are ableto recognise, respond to and perfectlysatisfy specific needs. This proves to be acompetitiveadvantage indifficult economictimes, since the number of employees canbemaintainedandtheexistingmarketsharecanbedefendedorevenincreased.Intougheconomic times we draw on our reservesand are able to continue to offer a highdegreeofsupplysecurityanddependability.ProfitabilityalsomeanscontinuallyenthusingcustomerswithmaximumsupplysecurityfortheirC-Partsaswellasstandardisedsystems,a uniform product range, a consistentlyhigh level of service and the best possiblequalityataninternationallevel.Aworldwidesupplier structure and strategic supplier partnershipsareessentialforthis.

EMPLOYEESThe focus is on people: employees are thehead and heart of the company and thesourceofoursuccess.Jobsaredirectlylinkedwith economic objectives. Growth securesjobs and training positions and enables jobs and further training opportunities tobe created and developed. However, we

know that growth is not everything andthat satisfaction requires more than just asecure job. For this reason,we supplementhigh degrees of freedomand responsibilitywith permanent contracts, flexible trust-basedworkinghours,part-timeworkoptionsand other additional benefits. We havetaken these measures to maintain the feel-good factor of our employees in the longterm. These measures target the well-being(work/life balance) of our employees andare intended to encourage them to assume personalresponsibilityintheareasofhealth,family and career and to give them theappropriateinstrumentstodoso.

ENVIRONMENTWe are committed to an integrated approach to environmental protection and the responsible use of natural resources.For us, environmental protection includes measures that serve to prevent impact on thenaturalenvironment.This includesbeingawareof,documentingandobservinglegalrequirements, theproperdisposalofwaste,sustainable land use, logistics and customer solutions and the increasing use of digitalmedia, among other things. Since 2002,

wehavebeen certified inaccordancewith DIN EN ISO14001. Receiving thiscertification according to the principle ofcontinualimprovementisanintegralpartofourbusinessobjectives.

COMMUNITY AND REGIONCorporate behaviour means future-orientedaction. As a family business, we and theWürthGrouphavefeltacommitmenttothisprinciple from the very beginning. Activepromotionofnon-profit,socialorganisationsis close to our hearts. We also supportnumerous projects in the arts, culture, research,science,educationanduniversities.We also aim to improve local conditions and support the local population.

RESPONSIBILITY

THE BEATING HEART"TheinnermostcoreofWürthcorporatecultureisWürthmanagementculture–itisthebeatingheartfromwhich thewholeWürthGrouplives,growsandprospers." Prof.Dr.h.c.mult.ReinholdWürth

WÜRTHGROUPGUIDELINESARE WÜRTHINDUSTRIESERVICEGUIDELINES

The Würth Group corporate culture is characterised by mutual trust, dependability, honesty and directness both insideandoutsidethecompany.

Weseethedignityofhumanbeingsasthetoppriorityinbusiness,asinthestateandsociety.

A humanistic business ethos underpins all our business activities.

Westriveforgrowthandanincreasedmarketshare.

Weleadbyexampleandadopta task-targeted, results-orientedapproach.

Weleadthroughvisionsandfromthemdevelopcommonobjectives.

Weelevatethecontinuousdevelopmentofthecompanytoaprinciplethatunderpinsouractions.


WÜRTHGROUPGUIDELINESARE WÜRTHINDUSTRIESERVICEGUIDELINES

Wedemandandencourageperformance.The greater the success, the greater the degrees offreedom.

Welovetosell.

Weinspireourcustomers.

We consistently pursue successful strategies and get togripswithnewthings.

Westriveforperfectioninallareasofourbusiness.

Weworkresponsiblywithmutualrespectandaredirectanddependableineverythingwedo.

We handle natural resources responsibly along the entire valuechainandopenlyaddressconflictsofinterest.

The most important phrase in our dealings with oneanotheris"thankyou".

TakenfromWürthGroupManagementCulture

Political, social and economic events have always been reflected in the culture ofbusinesses and organisations, as well as inleadershipbehaviour.Intimesofdemographicchange, globalisation and increasing digitisation, a set of basic values and theassociated management culture is more importantthanever.

It is for this reason that the guidelines haveformed the basis of our philosophy and ouridentity since our foundation, connecting ouremployeesinGermany,Europeandthewholeworld.Wecloselyfollowtheseguidelinesonadailybasisineverythingthatwedoacrossalldepartments. Theyare characterisedbyhighdegreesoffreedomandpersonalresponsibility,teamspirit, respect, trustandmutual fairness.These values are recorded in the company guidelinesandare freelyaccessible toeveryemployee on the Intranet. They are alsohandedouttonewemployeesduringwelcomedayswhen startingat thecompany. Inorderto internalise this sustainable approach, the guidelines have been expanded to entrenchresponsible use of natural resources inpeople'sheads.Conflicting interestscanonly

be addressed openly and implemented as guidelinesifemployeesunderstandsustainablebusinessalongthesupplychain.

Aseparateexhibitionconcerningcorporateandmanagementcultureisopenforallemployeesall year round at the most modern logistics center of industrial supplyatWürth IndustrieService inGermany. Itpresents thecompanyand leadership guidelines during a tour and illustrates our culture and management style in real-world situations within an interactivee-learningprogramme.Thiscontributes to theinternalisationofourprinciples.

We are convinced that good managers do not just appear spontaneously and that good management cannot just be learned at weekend seminars. That is why wedeveloped Fokus Leadership.Colleagueswith the potential for taking on leadershiptasks are prepared for management tasks in12modularmanagementmodules. Theyarethen monitored in the long term during their active management duties. Around 90% ofmanagement positions are filled by internaljuniorstaff.

CORPORATE AND MANAGEMENT CULTURE

Responsibility

VISIONS"Thatwhichwecallaresultisjustthebeginning." Ralph Waldo Emerson


Weareacompanyoriented towardsgrowthand innovation that serves industrial customers across the world as a C-Parts partner. As aWürth Group company, all activities have the aim of increasing cost-effectiveness andprofit. Capital resources for investments,securing our growth, innovations and newsustainabletechnologiescanonlybefinancedbycompanyprofits.Thedesireforinnovation,taking pleasure in rapid implementation, the consequences of establishing standardisedprocesseswithinthesupplychain,thecourageto assume business risks – people are the cornerstone of our business and growthstrategy allowing the company to operatesustainably.These purely commercial objectives can only beachievedbyacorporatecultureandgrowthstrategy designed for the long term. All thismust be covered by an integrated approach that deals with all partners, the environmentandemployeesaswellastakingglobalsocialdevelopmentsintoconsideration.

That is why the company partitions largemarketsintosectors.Ourproductsaresimilar,but the services that we provide along withthem make the significant difference. Theygivecustomersthefeelingofhavingareliablepartnerontheirside.Wereinforceourpositionin the competitive environment through our wide product range and by purposefullymaintainingcloserelationshipswithcustomersandsuppliers.

Sustainablecompanybusinessisthereforenotincidentalbutratheranelementaryfoundationforourfuture.Thisisalsoveryimportantforourlong-term, sustainable customer and supplier partnerships.

SUSTAINABLE, PROFITABLE GROWTH


Responsibility

QUALITY"Qualityisnotjustameasurableprocessbutessentiallyaphilosophy." Prof.Dr.h.c.mult.ReinholdWürth

Key performance indicators/management evaluation Knowledge management Internal and external audits

Processes: analysis, optimisation, standardisation, visualisation

Process owner/ manager

Process participants

Internal suggestions for improvement Innovation teams Integration of experts


QUALITY AND PROCESS MANAGEMENT

Qualitymanagementispartofanintegratedprocess management concept that includes all corporateprocesses.Therefore,theprocess-oriented application of ISO 9001 is paramount. Clear documentation andspecification of our business processesensures reliable procedures, dependable supplyandconsistentlyhighproductquality.Quality is not just a feature relating to ourproducts but also applies to all processes withinourcompanyandouremployees.Tofulfil the changing needs of our customers,we ensure continuous improvement and continuous further development of ourprocessesusingavarietyofinstruments.

KEYPERFORMANCEINDICATORS/MANAGEMENTEVALUATIONKey performance indicators are compiledacross the Würth Group and provide maximum transparency: they help toachievecomparability,identifystrengthsandweaknesses, derive improvement measuresandenhanceplanning.Weinformthewiderpublicofdefinedeconomic,ecologicalandsocial key performance indicators both todisclose our capabilities and development andtodefineobjectives.Youcanfindthekey

performance indicatorson the lastpageofthispublication.

KNOWLEDGE MANAGEMENTWe treat our employees' knowledgeconscientiously and purposefully. Theexpansion and further development ofknowledgeresourcesisacentralpartofourprocessmanagementconcept.

INTERNAL AUDITSWe regularly conduct internal audits to monitor compliancewith defined processeswithinthecompany.Weparticularlyexaminelevelsofimplementationandtheinterlockingofrelatedprocessesandalsoinitiateprocesschanges.

EXTERNAL AUDITSExternalauditswithsuppliersareconductedat regular intervals. These audits examinecompliance with our code of conduct,adopted in 2014, and the standards defined in auditing plans. External auditsare important instruments for identifyingfutureriskswithnewsuppliersandforfindingpotential for improvement with existingsuppliers.In2014wecarriedout101audits

intotal.Localauditorsarepresenton-siteinourmost importantprocurementmarkets. Inthisway,wecanassesssuppliersimmediatelyandmonitortheiractions.Localactivitiesaremanaged and supported by a central supplier management team at the Bad Mergentheim site of Würth Industrie Service. Duringaudits, measures are defined to stabilisecooperation in the long term and improve efficiency.Abreachofour standards leadsto awarning; further violations lead to thefinalterminationofthesupplierrelationship. All internal and external audit results aredocumented and the results are discussed in themonthlymanagementmeetings.

SUGGESTIONSFORIMPROVEMENTPRIMA stands for PRofessional IdeasMAnagement and enables employees to actively participate in the objective ofcontinuousimprovement.In2014,atotalof714ideasweresubmitted.

INNOVATIONTEAMSInnovation teams analyse internal company procedures and compose measures forfurtherdevelopment. Every temporary teamof four to seven members from differentdepartments receives a project task to process.Managers thenuse thisasaclearbasisfordecision-making.Themeasuresarethenimplemented.

EXPERTSEmployees with expert status arecharacterised by deep and cross-functionalknowledge.Theyadvisethemanagementonthe design of processes and specific issuesand deal with their active implementation.Experts also play a crucial role withinknowledgeand innovationmanagementonaworldwidebasis.


ResponsibilityCOMPLIANCE AND RISK MANAGEMENT

DIALOGUE Collaborative and respectful exchangewith all interest groups counts towardsconscientious corporate action. The mostimportant partners are our customers, suppliers and employees. To this end, weregularly conduct surveys and meetings.Customers receive an annual customer satisfactionsurvey,whichisusedtoquerytheirneedsandderiveoptimisationmeasures.Thisissupplementedbyregularcustomervisits.Ainternational customer day is held twice ayearfordiscussionandopendialoguewithour customers.Anannual employee surveyascertains how the employees perceive thecompany and managers. Once a month,the management informs employees aboutcurrent developments and significantimprovements. Every manager schedulesmonthly team meetings to communicate information specific to the department.Furthermore,wemaintainclosecontactwiththe public and include the local population in locationplanningandpublicevents.

COMPLIANCEWe have derived valid guidelines forall employees from our corporate andmanagement values. These apply asbinding regulations across all divisions and departmentswhendealingwithoneanotherand with all stakeholders. We have beenrepresented as a company on social media since 2012. The social media guidelinescreatedforthispurposeserveasaguidelinefor responsible interaction with new formsofmediaandillustrateopportunitiesaswellas risks. The Code of Conduct introducedin 2014 regulates cooperation with oursuppliers. It defines the framework andstandards for safety, health, environment,social issues and procurement. All theseguidelines are in keeping with WürthIndustrieServiceobservingtheprinciplesoftheUnitedNations'GlobalCompact.The documents are provided to all newemployees during their welcome days andcan be called up at any time online by existingemployeesviatheIntranet.

RISK MANAGEMENTOpportunities and risks have always beenpart of all our business processes andcompanydecisions.The conscious and systematic confrontationof risks is inextricably linked to corporateaction.OuractionsarebasedontheWürthGroup guideline for risk management. Itdefines the methodical and proceduralframework conditions within the WürthGroupindetail.Würth Group risk policy principles are defined centrally by theCentralManagingBoard.Theseprinciplesprovideourminimumstandardwhichissupplementedbyrelevantcompany-specificpoints.

DATA PROTECTIONDigitalmedia,socialnetworksandblogsareincreasinglygaininginimportance.However,duetothediversenumberofcommunicationchannels that we use for customer supporton a daily basis, our customer database containing contact details is a crucial foundation for optimum customer support.We guarantee that the data available to us is exclusively used to communicate withcustomers.The data is not passed on to third parties and all personal rights of our contactsremainprotected.Ourowndataprotectionofficer is responsible for compliance andimplementation.


DIRECTNESS"Wewantperformance,dependability,honestyanddirectness." Prof.Dr.h.c.mult.ReinholdWürth


Westand for "C-Parts.WithCertainty".Andthereforeforanabsolutelyreliablesupplyofthemanufacturing industrieswith productionmaterial.Truetothebrand,wealwaysprovideour customerswithC-Parts at the right time,in the rightplaceand in the rightquantities.Amaximumofsupplyandprocesssecurityaswellas thebestpossiblereliabilityofsystemand product quality are at the centre of allsupply concepts. Being able to rely on abusinesspartnerineverysituationisafeelingenjoyed by our customers and means:

• QUALITY ofproductsandprocesses

• RELIABILITY ofadvice

• SECURITY ofsupply

Thefactorofsecurityisnotjustanelementarycomponent of customer support andprocessing. It is firmly anchored in ourcorporate philosophy at the core of everytransaction with all stakeholders and withthe values of trust, dependability, honestyanddirectnessbothinternallyandexternally.Someexamplesfollow:

SECURITY FOR EMPLOYEES Job security, health care

SECURITY FOR SUPPLIERSStrategicpartnerships,audits,CodeofConduct

SECURITYREGARDINGTHEENVIRONMENTDIN ISO 14001 certification, conscientioustreatmentofnaturalresources

SECURITY REGARDING THE REGIONSocial involvement

INSIGHT

RELIABILITY FOR CUSTOMER SATISFACTION"WeensurethatourcustomersareprovidedwiththerightquantityofC-Partsintherightqualityattherighttimeandattherightlocation.Ourcustomerscanrelyonusasalong-termpartnerandtrustoursolutions." RainerBürkert,ExecutiveVicePresidentoftheWürthGroupandGeneralManagerofWürthIndustrieService

C-PARTS.WITHCERTAINTY.


CUSTOMERS AND CORE BUSINESS

Our customers' trust is crucial for ourfuture.Asa tradingcompanyandserviceprovider for small parts and automatedprocurement systems, we are gearedtowards perceiving customer needsquickly and dealing with them flexibly.We see thisasanopportunity toexpandourspectrumofproductsandsystems.Allbusiness divisions are therefore orientedtowards long-term partnerships with ourcustomersasthisistheonlywaytocreatea supplier-customer relationship that isprofitable for both sides. As an interfacebetween manufacturer and customer, wecan influencesustainability issuesonbothsides. Our obligation is to sensitise bothsuppliers and customers to sustainable products, systems and logistics and interest themininnovativesolutions.

INNOVATIVECAPACITYWe consider it our task to enable our customers to concentrate on their core competences without endangeringproduction supply security. Therefore, theanswer to thequestionof howwewish tobe a sustainable and long-term industrypartner is: through innovations in product

and supply systems for our customers aswellascompletecustomerorientationfromalldepartments.

INTENSIVECONSULTINGToenthuseourcustomers,wehaveestablisheda specialist sales network that guaranteesbothgeographicallyclosesupportaswellasspecialist support inall sectors. In thisway,customers are directly supported by a dual system of sales representatives and on-siteinternal sales staff. This duo knows all thecustomersinthecountryandregionaswellastheirspecificneedsandcanbeonhandatthecustomers'sitesveryquickly.Formorein-depth support from regional colleagues,specialist departments or divisions have been established that offer customers solutionsfor their field. These divisions are brokendown into sector specialists with thoroughunderstandingoftheneedsoftheindividualmarket segments, product specialists withdetailed knowledge of specialist productranges and system specialistswith detailedknowledgeofdifferentlogisticandplanningsystem solutions. The internationalisation ofactivitiesofallindustrialenterprisesrequiresa flexible range of services to be offered

worldwide(includingbysuppliers)toprovidecustomers with a uniform level of quality.Wefulfilthisneedthroughtheintegrationofmore than 45 Würth Group companies into theWürthIndustrialNetwork,WINWORK®.Closelynetworkedcooperationbetweenallcompanies is the basis for comprehensive,worldwide support of all customers withidenticalproductsandservices.

AUDITS BY CUSTOMERSOur customers conduct audits regarding our procurement, products, processes and customer support in cooperation withauthorised auditors at our most modern logistics center for industrial supply in BadMergentheim,Germany.Theauditsareusedto determine deviations or observations and, if necessary, toderive internal actionplanswithdeadlinesforoptimisation.

COMPLAINTS MANAGEMENTComplaints affect all areasof the companyand are an essential indicator of customersatisfaction and customer loyalty. We seecomplaints as an opportunity and not as a problem to be repulsed. Therefore,complaints management plays a strategic

roleforus.Ourprocess-orientatedcomplaintsmanagement system is based on the standard 8D Report compiled by the VDA(Verband der Automobilindustrie – German Association of the Automotive Industry) toovercomeunderlyingproblems.Inparticular,the structured approach and consistent documentationofthe8Dprocessstepsenablecomplaints to be systematically processed withthecustomeranderrorstobepreventedin the long term. Management is informedof complaints processing statuses duringthe monthly meeting so that any necessary decisionscanbequicklymade.Internalerrorsare recorded in process management as part of continuous improvement and converteddirectly into actions. External errors aredirectlyintegratedintosuppliermanagement.


INSIGHTSUPPLIERS – WE ARE THE INTERFACE BETWEEN MANUFACTURERS AND CUSTOMERS

As an interface between manufacturersand customers, we are committed to athorough understanding of the qualityof our products at the most modernlogisticscenterforindustrialsupplyinBadMergentheim,Germany.

CONTINUOUS QUALITY TESTINGWe consider continuous testing of itemsfrom the suppliers through to thecustomersto be a matter of course. It enables us tooffermaximumreliabilityinthesupplychain.Once incoming goods have been posted, a batch number is created automatically in SAP (ERP system) and the delivered batch is permanently fixed to theSAPbatch. Thebatch number is carried along through every goods movement and is visible forthe customer on the bin label in Kanban and/oronthedeliverynote.Ourcustomerstherefore have complete transparency andtraceability.Automatic weight testing during theongoing process enables items and pick quantitiestobeverified.Finishedprocesseditems are additionally inspected using spot checks. The RFID gate (radio frequencyidentification)completesthecomprehensive

testing process with automatic loadingcontrolduringgoodsissue.

RESPONSIBILITY Responsibilitystartsbeforegoodsreceipt incollaborationwithourmanufacturersduringtheprocurementprocess.

CODE OF CONDUCTWe attach great importance to responsible business conduct throughout the entire supply chain and cooperation based on mutual trust with our suppliers, advisers,brokers, commercial agents, distributors, contractors, agents and other suppliers ofgoodsandservicesallover theworld.Weexpectcompliancewithandobservanceofvalid laws and regulations. This obligationapplies toguidelinesaswellas recognisedoperational rules of the societies andcountriesaroundtheworldinwhichbusinesspartners who have signed our Code ofconduct operate. From these partners, weexpectcompliancewiththeconditionslistedregarding laws and regulations, humandignity, employment laws, environmentalprotection, data protection, confidentiality,competition and cartel laws, procurement

of raw materials, import/export andcommunication. Serious violations of theprinciplescontainedinthisCodeofconductwill generally be considered breachesof a fundamental contractual obligation.Repeated violations without sufficientimprovementofthesituationwillleadtothebusinessrelationshipbeingterminated.TheCodeofconductcanbereferred toatanytimeonlineonthewebsitewww.wuerth-industrie.com and applies as the bindingcode of conduct for all employees andbusinesspartners.

Items requiring testing

Goods receipt

100% identification

test

Second identification

test

Storage

Picking station

Goods issueinspection

Goods issue

Quality assurance


SUPPLIER MANAGEMENTAs a company, we are active on theinternationalmarket;asanindustrialcentralpurchasing point for the procurement ofC-Parts,wearegloballyactive.Weoperatein a dynamic, competitive environment and are exposed to high cost pressure. Due tothismarketsituation,wehavedevelopedasupplier management concept to structure relationshipswithoursupplierssystematicallyand direct them strategically. We do notattachgreatimportancetothelowestprice,but promote strategic supplier partnerships underthefollowingaspects:• Quick and reliable response • On-scheduledeliveriesofcorrectquantities• Competitivevalueformoney• Well-developedqualitysystem• Passionforinnovation• Compliancewithsocialandenvironmental

standards(Codeofconduct)

Supplier selection, supplier audits, supplier approval and contract administration, supplier evaluation, supplier development, supplier classification and supplierintegration are important components ofsuppliermanagement.

TECHNICALSUPPLIEREVALUATIONOur suppliers are audited at regular intervals and evaluated once a year. The basis foreveryqualityauditisauniform,standardisedsurvey concerning technical standards and social aspects. Suppliers are classified asA, B or C suppliers depending on the score achieved.Csuppliersarerequiredtosuggestmeasures to improve the performance ofcriteria evaluated as poor. They are alsorequested to arrange a meeting with theparticipation of Management as part ofanescalationstrategy.Ifthesuggestedandintroduced measures do not result in an improvement,thesupplierwillbeblocked.

Our aim here is to systematically secure againstrisksregardingtheperformanceandfuturesecurityofnewsuppliersandtoinspectexistingpartnersregardingcompliancewithrelevantpointsinthesurvey.

GLOBAL SUPPLIER STRUCTUREThe Würth Group and Würth Industrie Service purchase goods in more than 35 countries worldwide and are thereforesituated in an international procurement environment. Compliance with social andenvironmental standards is regulated by law in most of our sourcing countriesand violations are punished by the state.However, violations of human rights andemployment lawscannotbeexcludedwithcertainty in some countries of origin. OurbindingCodeofconductandqualityauditsareintendedtopreventthesekindsofrisks.

Our technical supplier evaluation definesstandards applied to our global supplier poolregardingtechnicalqualityandsocialcompliance.

Our employees are given specialist product and market issue training and can gain long-term qualifications in the FOKUSPurchasingandtechnologytrainingcourses.A monthly purchasing and technology report containingkeyperformance indicators fromcurrentdevelopmentsservesasthebasisforderivingactions.

Diagramm Lieferantenstruktur

Deutschland Europa Fernost Sonstige SUMMELieferanten 71% 20% 6% 3% 100%Lieferanten Anzahl 4849 1345 423 191 6808Lieferanten 71% 20% 6% 3% 100%

Deutschland 71%

Europa 20%

Fernost 6% Sonstige 3%

DistributionofactiveWürthIndustrieServicesuppliers(March 2014)

Germany 71%

Europe 20%

Asia 6%Other 3%


C-PARTSMANAGEMENTC-Parts are production materials withsecondary importance for theendproduct.A vast range of these parts is available.Although the purchasing volume of theseC-Parts is very low, procurement costs areveryhigh.OurmodularC-Partsmanagementconcept can be adapted precisely and flexiblytotherespectivecustomerneedsandsustainablysecuresthesupplyofproductionmaterials. We ensure that our customersareprovidedwiththerightquantityofsmallpartsoftherightqualityfortheirproductionrequirementsattherighttimeandattherightlocation. It isprecisely this reliabilityaspectthatmakesourcustomerstrustoursolutions.Ourcustomers'aimisprocesssimplification,transparencyandthepoolingofthesupplierstooptimisetransportlogisticsanddeliveries.At the same time, production stock should be deliberately reduced to a minimum to tie up as little capital as possible and sustainably secure corporate success. A further focusis the transfer and build-up of knowledge,ranging fromour technical support throughto training courses and seminars on legal changestojoiningtechnology.

INTELLIGENT SOLUTIONSModern IT technologies are already networkedwithclassicproductionprocessesand are changing materials management.Therefore, it is important for us to sensitiseour customers to new solutions designedfor the long term and their additionalvalue and to make them easily accessible.When considering sustainability in C-Partsmanagement, optimum, minimised use of storage, increased productivity andprotection of human resources play vitalroles. Therefore, in 2009, Würth IndustrieServicedevelopeditsownsmallloadcarrier,the Würth small load carrier W-KLT® and the second generation W-KLT®2.0, whichmeettheVDAstandard.Usingthisreusablecontainer our customers can drastically cut packagingwasteandreducetheareausedinproductionbyupto50%.Therefore,65%of the items sent by us are transported inthese reusable containers and container fill quantities are optimised for transport(Optimax). Conscious and efficient useof natural resources by reducing deliverycycles and avoiding unnecessary transport routesisoneoftheobjectivesofautomatedprocurement solutions. The top priority is

concentration on core competences and the greatest possible relief in peripheral areaswithmaximum supply security. 80% of ourcustomers already use automated delivery systems for these reasons. Examples of thisinclude dispensing machines for operatingsupplies, e-commerce applications suchas the Würth online shop for paperlessorders, the Würth app, the Würth Scanner, direct connections with customers' goodsmanagementsystems,theonlineinformationsystemforaclearoverviewandtransparencyof containers, consumption and deliveries,paperless invoices etc. Using RFID (radiofrequency identification) inKanbanenablesautomated repeatorders. The iBin® goes a step further by using its cameramodule toprovide a complete overview of stock incontainersandsupplyitselfinrealtime. PRODUCT RANGEOur product range is designed for thespecificneedsofthemanufacturingindustryandencompassesover1,000,000items.Within the Würth Group, ecologically optimised products are continually being developedtobeabletoofferenvironmentallyfriendly alternatives to existing items. One

exampleofthisistheproductlineECOfromthe chemical range which was developedin 2012. We also provide our customerswithexpert technical support regarding theoptimisation of surfaces used for fasteners- a further important issue. Switching fromsurfacescontainingchromiumVItoharmlesssurfaceswiththesameorimprovedpropertiesisacurrentissueinvarioussectors.Weadviseourcustomersonwhichexistingalternatives can be used. Our productmanagers also work in cooperation withmanufacturers to develop new surfacesthat should combine environmental, economic,performanceandhealthaspects.In addition to product development, standardisation of the employed items alsorepresentsapillaroffuture-orientedproductstrategy for customers. Using standardisedfasteners often considerably reduces thevariety of parts, which reduces complexity,optimises processes and gives our customers a competitive advantage. Our Sales andProduct Management departments are constantly in contact with our customers todealwiththisissuecontinuously,tappotentialfor the customers and achieve ongoingimprovement.

InsightSUSTAINABLESYSTEMANDPRODUCTENVIRONMENT


INTELLIGENT SYSTEMS"Digitisationisalreadybeginningtochangeproductionprocessesandmaterialsmanagement.Inthefuture,streamlinedprocesseswillnolongersuffice.Individualsolutionswillberequiredthatcanbelinkedtoacompletesystemandconnectwithhumanusers."

ChristianSchorndorfer,GeneralManagementSales/KeyAccountsatWürthIndustrieService

PRODUCT COMPLIANCEWeregardtheissueofproductcompliancein our industrial product range to be a great responsibility. This includes technicalcomplianceofourproductswithEuropeanguidelines and conformity to regulationsvalid across Europe (including CE).Guidelines regarding the environmental compatibility of our products and thecorresponding recycling process that must beobservedarejustoneexample.We are also subject to specialist restrictions regarding product approval and definitionof, for example, corrosion protection(chrome VI, cadmium), safety-relevantfeatures (12.9 galvanised) and specialproductapprovalsforcustomers.

ASSOCIATIONSConnectorsandfasteningelementsarebulkmaterialsusedacrosstheworldindifferentareasoftechnology,mechanicalengineeringand plant engineering. Requirements,interchangeability, product range variety and designations are represented by uniform standards. We actively contributeto these technical standards in national and international specialist committees and associations and collaborate on developing statements, for instance regarding banson certain materials. The work of theseassociations is important to us, not only to demanduniformstandardsfromourglobalsuppliers, but also to advance uniformstandardsataninternationallevel.


InsightSUSTAINABLE LOGISTICS

CENTRAL LOGISTICSAcentralelementof thecorporate strategypursued by Würth Industrie Service and all other companies in the WINWORK® (Würth Industrial Network) Group is the directionof deliveries through a central logisticscentre: themostmodern logistics center forindustrialsupply inEurope.Thisalsoentailsthe expansion and further development ofthemostmodernlogisticscentreforindustrialsupply in Europe at the Bad Mergentheim site in Germany. This strategy enables ourcustomerstoconsolidatetheirsuppliersasfaraspossible.ThisreducestheflowofgoodsbypoolingC-Partsfromonesourceandavoidsfreight-intensivesmalldeliveries.AllEuropeanindustrial customers are supplied centrally fromGermanyThisenablesustoimplementpan-European service quality, sustainableinvestmentsinprocesstechnology,long-termlogistics concepts and the qualification ofspecialistpersonnel.

LOGISTICOBJECTIVESTheobjectivesoftheLogisticsdepartmentareto produce the best possible performanceand quality and to reduce costs. Logisticsprovides customer-oriented and process-oriented solutions for whole and partialsystemsincompanies,groupsandnetworks.Logistics objectives are based on the 6 Rs rule which is followed accordingly throughoutthe entire division and is being continually developed. The6 Rs are: the right productin the right quantity at the right time in therightplaceattherightqualityandattherightprice.TheaimofCentralLogisticsistodesignintralogisticprocesseswithinthesupplychainin a manner that ensures corporate success andalsoconservesresources.Inthisrespect,long-terminvestmentinmodularandflexiblyexpandable technologies and systems isimportant.Likewise,processesandfunctionalunitsmustbecreatedwiththebestpossiblereliability, be decoupled from one anotherand be able to operate independently.Storage, buffer and drive systems areplanned and selected taking these criteria intoconsideration.

TECHNOLOGIESOur OSR shuttle warehouse, which standsfor Order Storage and Retrieval, and ourfully automated high rackwarehouseworkon thegoods-to-manprinciple. This ensuresthattherightitemisretrievedfromthestorageareaandplacedinthecustomerorder.Theadvantage of this procedure is that shorterjourneys and reduced physical activity (less liftingandstretching)relievetheorderpicker.This achieves a comparably high picking performance. Italso reduces theerror rate.TheOSRshuttlewarehouse isasmallpartsandbufferwarehouse.TheOSRconsistsoffourlanes(twosidebysideandtwoontopof each other) which are designed to beindependentofoneanotherandredundant.Multiple lanes in theOSRensuremaximumreliabilityanddeliverycapacityforcustomersas well as flexible parts availability. Bystoringitemsindifferentlanes,thesameitemcanbeaccessedatdifferentlocationsintheeventofanemergency.Alltheseapplicationshave people at their centres, in practical combinationwithmoderntechnology.Loading controls, including an RFID goods issue gate and the introduction of a rampmanagement system, ensure that customers'

items are loaded accurately and correctly.This is implemented by linking and automated feedback to the loading device and duringbridge loading. The vehicles are steeredon the premises via a pager solution to reduce internal goods movements and truck journeys to a necessary minimum and avoid unnecessaryjourneys.Sincetheendof2013,all incoming deliveries on the procurement side have been registered centrally via the Transport Management Information System(TMIS) and delivered to the respective storage area.OurrolewithinthesupplychainasanintegratedC-Partspartnerforsupplyconceptsputsusat the forefrontof transport logistics.The combination of economy, ecology andsocial responsibility is a task that we setourselves and optimise every day, particularly in this field.Our approach is to be a totalC-Partspartnertoallowthegreatestpossiblesupplier consolidation. This reduces goodsflows considerably as the items are pooledandtransportedfromonesource,insteadofmanyfreight-intensivesmalldeliveriesarrivingintheusualway.


FLOW OF INFORMATIONPerformance indicator systems arefundamentaltothemanagementoflogisticsdivisions.Togainaquickoverviewofallareas,a central logistics balanced scorecard is recorded each month and measures derived for the individualdivisions.Ouremployeesalso receive a monthly logistics newslettercontaininginformationconcerningchanges,IT adjustments and current logistics key performanceindicators.Anewsletterisalsoprovided for all industrial employees anddisplayedoninformationboards.

ERGONOMICS AND STAFF EMPLOYMENTTargeted "FOKUS Logistics" trainingconcepts in the Logistics departments ensure long-term improvement of specialistexpertise, team spirit and motivation inthe commercial sector. Demographicdevelopmentswillmakeitevenmoreimportantto automate physically demanding activities in the future. The technologies mentionedabovehavealreadymadeabigsteptowardsensuring thephysical relief of employees inthe commercial sector. A specialist logisticshealth concept is intended to discover how

employeescanworkinalessstressfulmannerand therefore also avoid work accidentsand absences as far as possible. The aimis to implement preventative measures foremployees. This includes cross-functionalemployee training to guarantee a resource-conserving balance between areas makingdifferent physical demands. Multifunctionalworkstations enable Logistics employeesto work flexibly, ergonomically and health-consciously.Everyworkstationisconstructedidentically and is intended for differentfunctions: picking, checking and filling andpacking.Dependingonrequirements,goodsreceipt and goods issue tasks can be handled attheworkstations.

FLEXIBILITY"Today,itisvitaltorecognisecustomer,sectorandmarkettrendsatanearlystageandestimatetheireffectonlogistics.Weshouldalreadybedevelopingexcellentfuture-orientedideasandlogisticssolutionsevennow."StefanReuss,GeneralManagementLogisticsandITatWürthIndustrieService


InsightCUSTOMERINDIVIDUALITYANDSUSTAINABLELOGISTICS

As early as 2009, Würth Industrie Service, AdolfWürthGmbH&Co. KGandWürthLogistikGmbH&Co.KGwereawardedaprizefor theproject"Modular logistics:Thesolutionformulti-channelsales".

The individualisation of customer wishes,high product and service requirements,technological progress, increasing competitivedynamicsandopeningupnewmarkets and countries requires a largevarietyofsolutionsandcomplexprocesses,in particular in our Logistics department.Over the years, these demands resulted in a modular system logistics model that can be speciallycustomisedfor individualcustomergroups. Instead of one Würth for allcustomers,wenowhaveaWürthforeverycustomer. This anchors us in our customers'operatingstructureswithascopeofservicesthat goes far beyond the normal range.Customers can concentrate on their core business and are relieved of the burden ofprocurement,storageandrepeatorderingofC-Parts.Wedonotseethisprocessasstaticbut dynamic, as customer requirements arealsosubjecttopermanentchange.

Themanyandvariouscustomerrequirementsresult in analmost overwhelming numberofcomplex individual processes.We thereforeface the challenge of handling customerwishes,suchasshortdeliverycycles,individualpackaging or labelling, both productively and inparallel.

MODULAR LOGISTICSAt this point, our thoughts turn to modular logistics. This entails analysing complexindividual customer requirements andsplitting them into individual process steps (modules).Thesemodulesareclusteredintothe available standard processes forwhichroutine actions already exist and split intospecialprocessesforwhichproceduresmustfirstbedefined.Subsequently,thesequenceand method of processing specialist andstandardmodulesaredetermined.Complexrequirements can be made manageableand simplified using this approach. It alsoimproves process quality and optimisesprocesscosts,durationandroutes.

SERVICEPROVIDERCATALOGUETheserviceprovidercatalogueisareferenceworkofadditionallogisticsservicesavailableas part of Kanban support. It uniformlydefines deviations in the standard Kanbancontrol process for all customers and listsprices.This can be used to guarantee equaltreatmentofallcustomersacrossallcustomercategories.


"AWÜRTHFOREVERYCUSTOMER." From the German Logistics Prize 2009


InsightENVIRONMENTALMANAGEMENT

Environmental management is a part ofour integrated management approach.This approach encompasses both quality management and environmentalmanagement.

The systematic approach in line with therequirementsofDINENISO14001isfirmlyembedded in the environmental policy and environmentalguidelinesofWürth IndustrieService.Wealsoregularlytestandreviseourownenvironmentalperformanceinlinewiththeprincipleofcontinuousimprovement.

Since 2002, we have been certifiedaccording to the environmental management system standard DIN EN ISO 14001 and are successfully re-certified on a regularbasis.

ENVIRONMENTALPOLICY&ENVIRON-MENTAL GUIDELINESOur environmental policy is aligned to our corporatecultureandphilosophy.

The focus is a clear commitment toenvironmental protection as well as theresponsibility for an integrated, long-termenvironmentalmanagementconcept.

ENVIRONMENTALPROGRAMMEOur environmental programme and individual specific environmental projects follow ourenvironmental company guidelines:

• Our employees are the key to responsible and environmentally aware action.Wetherefore focus on sensitising, trainingand including all employees

• Our aim is to use available resources in an environmentallyfriendlymanner.Weaimto reduce or,where possible, eliminatewaste,emissionsandenergyconsumption

• Weaimnottojustcomplywithandfulfiltheapplicablelawsandregulationsbutto exceed them, where possible andeconomicallyfeasible

The principles of our environmental policyare also reflected in the structure of themanagement handbook, which likewiseincorporates the company's qualityrequirements. Against the background ofan integrated approach, we strive to actresponsibly, in a process-oriented mannerandaccordingtotheprincipleofcontinuousimprovement.


WORTHWHILE"Letusdoallwecantoleavethenextgeneration,today'schildren,withaworldthatnotonlyprovidesthemwithenoughspacetolivein,butalsoanenvironmentthatallowslifetoflourishandmakeslifeworthliving."

Richard von Weizsäcker

ENVIRONMENTALTARGETSTheenvironmental targetsderivedfromourenvironmental policy, our environmental guidelines and the environmental aspects relevant to our company are continually monitored in suitable projects using targeted measures. Our primary environmentalobjectives are the careful use of availableresources, compliance with applicable,relevant legislation, strengthening the environmentalawarenessofeachindividualemployee and sustainable environmental protection.Thisistheonlywaytocontinuallyimprove and develop our environmental managementsystemasawhole.Ultimately,the fulfilment of our ecological objectivesshould be reflected in our certificationaccording to DIN EN ISO 14001. Theachievementofourenvironmentaltargetsismonitored, measured and managed using suitable key performance indicators alongwithannualmanagementevaluationandiscommunicatedtoallouremployees.

ENVIRONMENTALPERFORMANCETheenvironmentalperformanceisregularlymeasured and tested using suitable and relevant environmental key performanceindicators. In accordancewith the definedenvironmental aspects and targets relevant forWürth IndustrieService, the focushereisonkeyperformanceindicatorsforenergyperformanceandwastedisposal.

InsightWHEN MANAGEMENT BECOMES A CULTURETo us, responsibility for employees means job securityfirst and foremost. However it also entails creating anatmosphere and environment in which employees canfeel comfortable, flourish anddevelop innovative ideas.Management and corporate culture is more important thaneverinthisrespect,andisacornerstoneforhealthygrowth. The guidelines have already been examined indetailononeofthepreviouspages.

INFORMATION AND DIALOGUEAn information policy is also an important elementfor involving employees in our values and goals andsupporting decisions. All team leaders therefore holdregular team meetings to discuss issues that concern and influenceeventsinthedepartment.Withinthisframework,employees are asked to contribute ideas and actively participateinthecompany'sactivities.With regard to personal and professional interests, thesupervisorhasaone-on-oneappraisalanddevelopmentmeetingwitheachemployeetwiceayear.Thismeetingisanopportunityfortheemployeetodiscusshowtheyfeelabout their team and tasks, but also to discuss agreements on objectives, the employee's own performance,opportunities for development and salary prospects. Inaddition, an employee survey takes place once a year in which the company in general, the management,the working environment, employee benefits and thesupervisorsareevaluated.

THE FOCUS IS ON PEOPLE"Ouremployeesaretheheartandheadofourcompany." MartinaHeger-Dorfi,HRManageratWürthIndustrieService


All results are subsequently disclosed toallemployees and measures specified for thefuture. Ifanemployee leaves thecompany,an exit interview is always conducted toexamine the reasons for the employeeleaving and to derive plans of action. Aconsultative council, our company employee representatives, is available as a neutral pointofcontactfordiscussionsandpersonalindependentadvice.

SECURITYSecurity relates not only to providing our customers with C-Parts, products andsuppliers, but also to job security. Wefollow theprincipleof success that enablesemployees to achieve personal fulfilmentand gives the company a successful, long-term, secure future. We therefore give allemployeespermanentcontractsfromtheverybeginning.Allemployeesareremuneratedinaccordance with the performance-relatedpayment system and have the opportunity to influence their salary themselves,accordingtotheobjectivesoftheorganisationalunit.

FURTHERDEVELOPMENTThe structures of different generations andjob descriptions in companies across all industriesisbecomingmoreandmorediverse.This is preciselywhy it is so important that

development opportunities for employeesand apprentices are tailored exactly toindividual strengths anddepartmentswithinthe company. We therefore place greatimportance on personnel development, becauseby investing inouremployees,weareinvestinginthefuture.Weofferahostoftraining courses and development programs across all divisions and hierarchical levels.The"FOKUS"seriesoftrainingprogrammesforms the basis for the qualification ofall employees and apprentices at Würth Industry.Thisconceptdefinesandimplementsmeasuresthatdevelopthepersonalskillsofeach individual and highlight professionalperspectives. Almost every departmentoffers the opportunity to participate invarious training courses and to gain first-handknowledgeeveryday.Weofferthesetraining courses, taught by employees foremployees, as part of the "WISworkshop"programme.Inadditiontothewiderangeofinternaltrainingcourses,weprovidefinancialassistance for external further developmentcourses:in-serviceprogrammesofstudyattheWürthAkademie,seminarsheldbyexternalpartners such as consultancy services or educationalinstitutions,andmanymore.

FELLOW HUMAN BEINGS, SOCIALISSUES&EDUCATION

Corporate behaviour means future-orientedaction. As a family business, the WürthGroup, and therefore also the GeneralManagement of Würth Industrie Serviceaswell as the companieswithin theWürthIndustrialNetwork,have feltobliged to thisprinciplesincetheearliestyears.

Wearededicatednotonly to theareasofcustomer service, employees, environment and along the supply chain, but also to an integral approach for our fellow humanbeings.Activepromotionofnon-profit,socialorganisations and support of numerousprojects in arts and culture, research and science, training and education are particularlyclosetoourhearts.Wethereforework with regional associations in andaround Bad Mergentheim and are actively involved in projects in social and educational facilities.Wealsoprovidesubstantialsupportforpeopleinoursocialandculturalprojects.

One of our special concerns is to openup opportunities for young people withdisabilities. We wish to enable them toparticipatewithintheirabilities,tostrengthentheir self-esteem and thereby to improvetheiroverallqualityof lifeandpromote thecoexistence of people with and withoutdisabilities.

We develop specific, long-term projectgroups to give students deeper insight into theirfuturecareerenvironmentoveralongerperiod.As part of a project team, studentscan participate in intensive internships over severalsemestersandalsoworkontheirownprojects,toalargeextentindependently.


FIELDS OF ACTIONOneofourmostimportanttasksistofurtherintensify our individual fields of action inthe medium term. A first step towards thishas been taken by defining objectives andrevising our Code of conduct. Defininguseful key performance indicators andtargetsforthesekeyperformanceindicatorsto guarantee measurability will play animportantroleinthemediumterm.

DIALOGUE/COMMUNICATIONIt is also essential to continue developing the area of dialogue. Regular coordinationwithin brand task forces is the first step inthe right direction. Furthermore, obligatorytrainingcourses tosensitiseemployees,e.g.on the issueofenvironmentalmanagement,mustbecomefirmlyestablished.Theyshouldbecomepartoftheintroductoryprogrammeforallnewemployeesandalsobeincludedin the internal WISdom workshop trainingprogramme. Further information shouldbe added to the internal Intranet platformintegrated inWISnet.Theaim is toprovidethesame,uniform information toall interestgroups across all media and for thisinformationtobequicklyaccessible.

SYSTEMS/PRODUCTIntheareaofsystemandproductsolutions,we will continue developing automatedprocurementanddigital networking forourcustomers to keep the processes simple and allowcustomerstoconcentrateontheircoretasks. Maximum reliability in the C-Partssupply chain still has the highest priority ofall delivery forms and thus maintains long-term business relationships. Resources areoptimallyutilisedthroughtheuseofreusablecontainers, load bundling, optimum container fillamountsandorderpickers(tonamejusta fewfactors).Standardisationof itemswillremainthefocuswithregardtoourproductrange.Thedevelopmentofecologicalproductgroupsandproductcompliancewillcontinuetogaininimportance.Afurtherfocusistheforming of strategic supplier partnershipsandtherelatedsupplierdevelopment.

LOGISTICSMapping and processing individual and very different customer requirements willfurther increase the complexity of logistics.Our objective is to retain process flexibilitydespite the increasing complexity. In future,approaches such as modular logistics, which can make complex processescontrollableandmappable,willbeofcentralimportance.Wheninvestinginnewbuildingsand technologies, the primary criteria offlexibility, redundancy and reliability willinfluence research, selection, planning anddecisionmaking.

ENVIRONMENTSuitable key performance indicators forenergyperformanceandwastedisposalandconstant monitoring are intended to make the area of environmental managementeven more transparent and manageable.Sensitisation of employees through trainingcourses is another important tool forenvironmentalmanagement.

CONCLUSIONAt Würth Industrie Service, sustainable, future-oriented and environmentallyconscious actions and productivity-orientedenterprise are integral components of ouridentity.Theindividualissuesareembeddedineveryareaofourcompanyandaretakeninto account generally and in detail whenmakingalldecisions.Duetothecomplexityofthese tasksand thecross-companyaspects,it is primarily the task of management toembody and promote sustainability. Tosupport the management, objectives have already been defined in all departments,action plans are being developed and improvement concepts monitored. Centralprocess management and internal auditing arealsotaskedwithcontinuouslyexaminingand optimising ongoing improvement and compliance with existing regulations. Asa company with long-term orientation, weconsider sustainability to be an important element for securing our future.We attachgreat importance to meeting all challenges in thisareawhilsttakingeconomicalobjectivesintoconsideration.

ACTIONS AND PROSPECTS

GROUNDBREAKING"Pathsaremadebywalking." FranzKafka

ISSUE10/17WürthIndustrieServiceGmbH&Co.KGIndustriepark Würth, Drillberg97980 Bad Mergentheim, GermanyTel.+49(0)793191-0Fax+49(0)[email protected]

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