/ RISKS AND CONSEQUENCES The supply chains in our subsidiaries are organised to offer the widest range of products and guarantee product availability, while streamlining operating costs (reducing surface areas, saving energy, using less transport, and concentrating technical skills under the same roof). This concentration of supply flows is a factor in improving customer service. However, it amplifies the fragility of direct delivery to customers and supply to subsidiaries in the event of total or partial failure of a logistics platform. There are three risk factors for a disruption in supplies: • The failure of a key supplier; • General pressure in the road and marine transport sectors; • Global or partial shortages following pandemics, geopolitical tensions or unexpected weather events. Our logistics platforms are also subject to risks from multiple origins: social, climatic, environmental, and damage to facilities or information systems, for example cyberattack. The failure of the logistics platform can have a significant impact on the company's commercial performances, earnings and image. Given our distribution sector, the most significant consequence of product unavailability is on the quality of service provided to our customers. This is essential for “critical customers” due to the nature of their business, which cannot be interrupted. In this situation, the financial consequences for our Group may arise from the failure to comply with contractual clauses with these customers. The repercussions may also affect suppliers and carriers. ENVIRONMENT Logistical organisation Inter-subsidiary Logistics Platforms in France steel platforms QUOFI (hardware, tools and industrial supplies) platforms MRO (Maintenance, Repair & Operations) platform water sectors platform nuts, bolts and screws platform stainless steel and aluminium platform millions of lines (QUOFI platforms and industrial maintenance product platforms) in 2023 4 3 1 2 1 1 7.6 47 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
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