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Case Study
GE Appliances, a Haier Company
Growing Better With Cobalt & Responsible Minerals
About GE Appliances
GE Appliances is a household name with a rich history of innovation spanning more than a century. Known best for designing and manufacturing household appliances, GE Appliances is also a supplier to major retailers and a leader in the manufacturing industry.
As the regulatory landscape became more complex, the compliance team at GE Appliances recognized the importance of managing their supplier network. The GE Appliances team aimed to set a higher standard for responsible minerals sourcing by establishing a program to manage conflict minerals supply chain data, and then expanding to include cobalt.
The Compliance Landscape
- 350 Suppliers
- Conflict Minerals
- Cobalt
Larry W. Smith
Supplier Quality Program Senior Manager
GE Appliances
GE by the Numbers
12,000 employees
$10B USD in annual revenue
1,000+ hours spent on reporting per year before Assent
90% reduction in time spent on responsible sourcing program
One compliance manager
Introduction
For years, GE Appliances’ compliance program consisted of Supplier Quality Program Senior Manager Larry Smith and a team of contractors sending hundreds of emails with reporting templates attached. The team would then compare supplier submissions against the Responsible Minerals Initiative list of smelters and build a report. Given the evolving nature of the regulatory landscape, Larry found it difficult to know which GE Appliances products were in scope of regulations, and whether the data suppliers were providing was accurate
As he tried to manage the company’s responsible minerals program, Larry was spending 60% of his time chasing suppliers, reviewing spreadsheets, and managing and training contractors on a topic he himself was not an expert on.
Selecting a Supply Chain Management Solution Provider
After compliance managers from across GE met to discuss the state of their programs, Larry decided it was time to make a change. In order to streamline resources invested in maintaining GE Appliances’ responsible minerals program, he needed a supply chain data management program that could:
- Provide additional regulatory expertise
- Support ongoing supplier outreach, without constant management
- Automate data review and validation using advanced AI capabilities
- Instill confidence and credibility into GE Appliances’ reports
- Increase efficiency and reduce total spend
Why GE Appliances Chose Assent
GE Appliances selected Assent as their solution of choice, thanks to supplier training and response, data accuracy, and the ability to tap into Assent’s deep expertise. With its dedicated team of subject matter experts, the ability to conduct supplier outreach, and automate data validation, as well as a reputation for reliability, Assent provided GE Appliances’ supply chain sustainability management program the credibility Larry had been looking for. “I knew it would save lives if we did our responsible mineral sourcing program right—but I needed help,” he said.
Establishing a Responsible Minerals Program
Once Assent’s solution was in place, GE Appliances’ responsible minerals program began achieving the success Larry had envisioned. “In trying to set a higher standard for GE, we also discovered how much time could be saved investing in compliance. Launching products is so much faster now that we have access to this data.”
There was also a financial benefit to GE Appliances’ investment in supply chain sustainability. “The cost of all our efforts before was hovering around $400,000 USD per year, and that didn’t include any kind of expertise. Now, not only are we saving time and money, but there’s an increased confidence in the accuracy of our data.
The high standard Larry set using Assent has given the company a competitive advantage when bidding on contracts and has allowed them to exceed their clients’ expectations.
Expanding Into Cobalt Management
After his success with conflict minerals, Larry felt there were more opportunities to improve GE Appliances’ global impact. Expanding GE Appliances’ CSR program to include cobalt due diligence would further secure their competitive advantage in the market, prepare the company for future regulations, allow them to grow better and more sustainably, and contribute more meaningfully to the global good.
“GE is a leader, not a follower. We didn’t just want to check the box and be done.”
The Results
$400,000 saved annually
$3 million+ saved since 2017
350 suppliers engaged
1,000 working hours saved
Client expectations exceeded
Growing Better With Assent
GE Appliances’ previous work with Assent made the decision to expand their existing program to include cobalt “a no-brainer,” said Larry. He knew he could rely on Assent to help him launch a successful program, and adding Assent’s Extended Minerals Reporting Template (EMRT) solution was simple. GE Appliances’ supply chain and product data were already in the system, enabling Larry to seamlessly start using the new reporting capability.
Within a few weeks, GE Appliances was collecting supply chain cobalt data and auditing its suppliers to locate supply chain risks. Larry then partnered with Assent’s regulatory training team and sustainability subject matter experts to provide suppliers with training:
“Now [suppliers] give us better data and respond to us faster, because they understand the why. Not just for themselves or with GE Appliances, but globally.”
Program Results
Running GE Appliances’ supply chain sustainability management program once took 60% of Larry’s time. Now, it takes less than five percent of his day, and those results are backed by transparency, accuracy, and credibility. It also helps protect millions of dollars of revenue annually, as major retailers require their customers — including GE Appliances — to provide data such as CMRTs before they’ll stock products
The reclaimed time and budget has also allowed Larry to pursue another area he’s passionate about: ethical sourcing audits.
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