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building a better future - Cemex

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Case Study:<br />

CEMEX distribution card delivers<br />

customer convenience<br />

CEMEX Philippines, in partnership with Banco de Oro, the<br />

country’s largest bank, issued in 2011 the first ever Distribution<br />

Card in the Philippine cement industry. The Distribution<br />

Card offers payment and credit solutions exclusively to<br />

CEMEX customers across the Philippine archipelago—supporting<br />

the company’s thrust into newer markets throughout<br />

the nation.<br />

The Distribution Card provides a secure channel to accelerate<br />

the procure-to-pay process for CEMEX clients. The<br />

card not only increases credit lines but also offers payment<br />

flexibility, affording customers assistance in growing their<br />

businesses.<br />

The Distribution Card is an innovation that exemplifies<br />

CEMEX’s growing array of customer-focused products and<br />

services designed to build client satisfaction and loyalty.<br />

improving supply-chain<br />

performance<br />

Our responsibility for sustainable business practices extends<br />

to the farthest reaches of our supply chain. Our customers<br />

and other stakeholders hold us just as accountable for the<br />

sustainability of our sourcing and procurement practices as<br />

for the sustainability of our products and services. Thus, our<br />

success in part relies on the support and participation of our<br />

suppliers, who provide valuable local perspectives, expertise,<br />

and practices and whom we view as partners.<br />

Local Sourcing<br />

We see local sourcing as a sustainable business practice: it<br />

creates jobs, which in turn stimulates local economies while<br />

developing new skills among local workers. We support<br />

small and locally based suppliers everywhere we operate<br />

(we define transactions with local suppliers as those purchases<br />

that do not include an importation code). In 2011,<br />

94 percent of our purchases were made from locally based<br />

suppliers. While some of our national suppliers are large<br />

companies, our procurement teams participate regularly in<br />

events to identify new, local suppliers, in particular smallto-medium-sized<br />

enterprises, which typically have revenues<br />

of less than USD50 million. We also provide training and<br />

development programs to help suppliers strengthen their<br />

business practices and integrate sustainability into their<br />

business processes.<br />

70%<br />

of our suppliers offer<br />

CEMEX sustainable<br />

products/services, such<br />

as 100% biodegradable<br />

kraft paper bags<br />

listening to our suppliers<br />

Some of the findings from our global supplier sustainability<br />

survey:<br />

41% of our global suppliers are signatories or committed<br />

to the United Nations Global Compact, whose<br />

ten principles seek to address human rights, labor,<br />

environment and anti-corruption challenges.<br />

62% have specific projects or social programs to<br />

promote the development of the communities where<br />

they operate.<br />

32% work with their suppliers in social programs<br />

for the communities.<br />

79% have a written ethics policy or internal code of<br />

conduct.<br />

70% have a written sustainability policy.<br />

71% have staff responsible for sustainable development<br />

or corporate responsibility.<br />

70% offer CEMEX sustainable products/services (for<br />

example, 100% biodegradable kraft paper bags).<br />

In 2012, we intend to conduct a deeper analysis of the<br />

survey data to uncover additional insights we can apply<br />

to supplier relationships. We will also work with the 30<br />

percent of suppliers who lack an ethics or sustainability<br />

policy to help them establish these.<br />

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