Performance Review

Customers and

Active stakeholder engagement

Open communication and proactive cooperation help Vetropack anticipate the needs of customers and other stakeholders, exploit new business opportunities and thereby create competitive advantages. The key stakeholder groups who influence or are affected by Vetropack’s business activities include investors, customers, suppliers, employees and their representatives, as well as society in general, including supervisory authorities, legislators, trade associations and non-governmental organisations (NGOs).

In the year under review, communication with all stakeholder groups was particularly important due to the COVID crisis, even though the measures to combat the pandemic severely limited the possibilities. The planning of stakeholder communication was made more difficult by the latent uncertainty regarding the development of government measures. As in the previous year, direct exchange with customers and suppliers at major trade fairs was hardly possible. Many events were cancelled or Vetropack decided not to participate for security reasons. Vetropack was able to compensate for this through regular virtual contact with customers and suppliers. Very intensive contact was also maintained with investors in this way during the year under review. However, due to the relaxed measures from the second half of the year onwards, Vetropack also took the opportunity to meet its investors in person at a physical meeting.

However, direct communication with customers and suppliers, for example at major trade fairs, was extremely limited in the year under review. Many events were cancelled or Vetropack decided not to attend for safety reasons.

Further information on stakeholder engagement can be found in the following report chapters:

  • Communication with employees: Performance Review Employee engagement
  • Working with suppliers: Performance Review Process innovation with suppliers and Performance Review Customer-specific products
  • Customer relationships: Performance Review Customer-specific products
  • Communiation with other stakeholder groups: Sustainability Report Active stakeholder engagement

Multi-supplier strategy

Vetropack pursues a multi-supplier strategy to ensure a smooth production process. The strategy secures the supply of raw materials and equipment and minimises risks in the supply chain, such as disproportionate dependencies. The aim is to minimise supply and upfront cost risks and build up alternatives in order to strengthen Vetropack‘s negotiating position. The benefits of this approach were also evident in the second pandemic year. While 2020 was characterised by restrictions on labour and major challenges in logistics, Vetropack was confronted with high demand on the one hand and rising costs and scarce goods on the other in the year under review. However, thanks to proactive supplier management that relies on multiple partners, Vetropack has sufficient flexibility and room to manoeuvre even in challenging procurement situations.

Vetropack also used the year under review and its new challenges to work on its supplier relationships - with a particular focus on payables. In doing so, the company responded to the trend towards consolidation and concentration in the supply chain, particularly among equipment suppliers, and to the recovering demand for production equipment in the glass packaging industry increasingly in the fourth quarter of the year under review. Suppliers must comply with the requirements of the Supplier Code. In specific high-risk cases, a specific clause on environmental and human rights compliance requirements is noted in the Supplier Code. All suppliers have signed the Supplier Code of Conduct or demonstrably have at least an equivalent code of conduct of their own. In the case of relevant goods or services, clauses on environmental protection, working conditions and compliance with human rights are also explicitly anchored in the contract. Vetropack also examines its supply chain with regard to risks in the area of conflict minerals in order to minimise these risks. For selected suppliers, specifications for compliance with the requirements for dealing with conflict minerals are implemented.

In the medium and long term, Vetropack Group is building on even closer and more binding cooperation with suppliers who deliver products that are as environmentally friendly as possible. With this approach, Vetropack is pursuing the goal of reducing the use of primary raw materials and fossil fuels. In addition, fewer synthetic raw materials are to be consumed. The procurement workshops on “Sustainability in Procurement” planned for the year under review could not be held due to limited travel options as a result of the Corona pandemic. They are expected to take place in 2022.

In future, Vetropack Group’s Supply Chain Management will also benefit from being equipped with specialised resources. With the creation of the position of a Group-wide Chief Supply Chain Officer, this specialist area will take on greater strategic importance. The aim of this central position is to promote decisions in the interests of the entire Group and to increase the speed of decision-making. In addition, the “lead buyer” approach creates expertise and technical depth that cannot be achieved at the plant level.

Health and safety of customers and consumers

Its professional processing of the high-quality packaging material glass means that Vetropack protects not only the packaged drinks and foodstuffs but also consumers’ health. Quality and safety are essential factors that are taken into account for each product development in accordance with clearly defined criteria. The company checks each individual glass container.

Vetropack also invested in refining the quality control process for its products in 2021. The quality assurance work group pressed ahead with the harmonisation of the quality assurance processes. As a basis for future investment decisions, the performance of the testing equipment of all production lines was evaluated. As a result, the testing technology at the plant in Croatia was brought up to date in the course of installing a completely new line. In Italy, the decision was made to replace some testing equipment. The vision of taking traceability to a new level through the use of QR codes is also being worked on.

Vetropack recorded that ensuring the highest quality standards as an important objective under the “Leader in quality” heading was part of its new Strategy 2030. Existing quality indicators, such as the number of complaints per glass container sold and critical defects identified internally, are used to measure progress. These quality indicators are not published for competition reasons.

Performance Review: Continuous quality improvement along the value chain