Information about the SCHOTTEL Business Continuity Plan for the COVID-19 crisis

Dear valued customer,

The world is facing particular challenges in coping with the effects of the coronavirus pandemic. Today, I would like to inform you of the measures we are taking to ensure that we remain a reliable partner for you during this time.

General SCHOTTEL risk management
As part of our corporate risk management, SCHOTTEL has implemented a number of procedures to identify and analyze uncertainties that present potential risks and threaten normal business activity. The aim of all measures is to:

• ensure the smooth continuation of current and future business operations so that SCHOTTEL remains a reliable partner offering customer-oriented sales and service products,
• secure the supply chain from our suppliers for both internal and customer needs,
• remremain a safe employer for our workers and staff.
   

The basis of any successful continuity plan is well documented processes and responsibilities, a reliable infrastructure as well as the ability to adjust flexibly to an ever-changing environment. The documentation regarding our processes and responsibilities is regularly audited in line with ISO 9001. Our preventive measures also comprise the identification and prevention of numerous other risks – such as cyber incidents – which we tackle using a multi-dimensional approach.

Key measures from our risk management plan have been adapted to the specific situation resulting from the COVID-19 pandemic. Furthermore, even prior to the introduction of governmental restrictions, SCHOTTEL’s internal crisis management team had already initiated further measures. These measures, in part, exceed legal requirements. As a result, the situation has been well controlled at all times.

SCHOTTEL workforce – Preventive measures in the working environment

SCHOTTEL implemented various measures to protect employees from the risk of infection with the coronavirus at a very early stage. To date, these numerous measures include:

• a highly detailed notification and (precautionary) home quarantine plan for confirmed or suspected COVID-19 cases; the creation of a 24-hour hotline for special questions and the notification of any risk from suspected cases before accessing company premises.
• the separation of staff by various means, including enabling the majority of our office staff to work from home; the rescheduling of presence-relevant workplaces to shift operation with no overlap of shifts; the strict use of virtual conference rooms (Skype) for business meetings.
• the prohibition of travel based on official travel warnings and the prohibition of external visits to our premises.
• the implementation of product guidance systems combined with restricted access authorization for delivery and shipping.

These and further measures jointly enable us to maintain the continuity of our business operations in all divisions.

Supply Chain – High real net output ratio and intensive supplier monitoring

SCHOTTEL has a higher in-house production rate than all of its competitors. Two manufacturing locations with almost identical capabilities and skills provide flexibility and minimize the risk of production losses for any reason. This is supported by a high inventory, especially for core parts with traditionally long delivery times. Beyond this, our purchasing strategy ensures that alternative suppliers are qualified for almost all parts. The majority of these come from premium suppliers from Germany and Europe.

These arrangements mean that SCHOTTEL is best protected and positioned for the impact of the crisis. In addition, permanent monitoring of the complete supply chain has been implemented. This includes a weekly meeting of top management to assess our suppliers' ability to deliver, to review our own performance in the face of these challenges and to proactively initiate early corrective measures. These steps enable us to maintain business processes and fulfill our customers’ expectations – even in a time of a global crisis. The introduction of these measures at an early stage also allowed SCHOTTEL to react to the shutdown of suppliers (e.g. in Italy and Spain) by securing the supply of affected parts through special measures.

We have also adapted our working methods to the changed circumstances – for example, by enabling customers to participate remotely in FAT (Factory Acceptance Tests) and by having classification societies carry out inspections remotely as well. Despite this, external influences dictate that delays may still occur in individual cases. Nevertheless, we have proactively communicated these to our customers and have so far been able to solve them to their satisfaction.

Global Service – High spare part availability as well as on-site and remote assistance
A high volume of spare parts at our central warehouse and, in particular, at our regional centers ensures that the most important parts are always available on site in the shortest possible time. Though travel restrictions also limit our possibilities in sending our service engineers, our close cooperation with authorities usually allows us to be granted exceptions, subject to the observance of protective measures. In addition, we are represented worldwide by qualified personnel. This means that we are able to assist locally in accordance with current regulations, or, if not possible, offer remote assistance where feasible.

Further detailed information on SCHOTTEL Service’s remote maintenance systems will follow at a later date.

Taken together, these extensive crisis management measures put us in a position to continue to act as your reliable propulsion and service partner worldwide. On behalf of the entire SCHOTTEL company, including our worldwide subsidiaries, I would like to thank you for your continued support and kind understanding.

If you have any questions, please do not hesitate to contact your local SCHOTTEL representatives. They will be more than happy to help you.

We wish you, your colleagues and all of your family members continued health and success in safely navigating this challenging time.

Best regards
SCHOTTEL GmbH
Stefan Kaul
Chief Executive Officer