Fresenius Kabi
At Fresenius Kabi sharply increased raw material prices were
also a central focus of strategic purchasing negotiations in
2007. Fresenius Kabi had anticipated the price increases and
extended the global bundling of requirements in coordination with other Fresenius companies. This strategy helped optimize
the supplier portfolio and further standardize product
specifications. Long-range sourcing strategies were also formulated
with a view to improving Fresenius Kabi’s purchasing
position in relevant markets. The strengthened demand power
again led to good negotiating outcomes in individual areas in
2007 despite the difficult environment. Procurement logistics
are to be further improved long-term through the successive
introduction of online procurement processes (e-purchasing).
The rise in raw materials prices of agricultural origin witnessed in 2006 continued in 2007. This applied especially to corn and milk, which are used as a basic material for various processed products used in infusion therapies and enteral nutrition. For both materials there was increased global demand, while supply was unchanged or even lower in some cases.
The prices of energy and oil-based products as well as all products based on energy-intensive production processes, such as glass for packaging or aluminum for fastenings, were increased in 2007. The multiyear agreement concluded at the end of 2003 for cardboard boxes was not able to compensate for this market trend. In 2006, we had to accept moderate price rises for cardboard boxes; in 2007, prices developed in line with the market. However, the bundling of requirements and strategic sourcing of active substances used in our drugs produced good results in 2007.
Further regional synergy projects within the Fresenius network were initiated in 2007. In Germany, for instance, opportunities for cutting gas and electricity costs are currently under consideration and are being successively implemented.
Fresenius Helios
At HELIOS, high medical standards go hand in hand with an
efficient, economically sound management of available
resources. Its procurement management system combines the know-how of its doctors and nurses with the commercial
competence gained in other areas from the various clinics
and disciplines. This know-how and our standards of medical
quality are channeled into all procurement decisions to the
benefit of the patient. Today, 85% of the medical supplies
are standardized. A system of 280 product groups promotes
transparency, planning efficiency, and competition. The
electronic configuration of all purchasing processes (e-procurement)
– from ordering to billing – results in even greater
efficiency and transparency. The HELIOS clinic in Erfurt, for
example, a maximum care clinic with over 1,200 beds, already
conducts 75% of its ordering in this way.
In 2007, HELIOS equipped all trauma surgery departments with fixed-angle-implants and implemented a company-wide concept for chronic wound management. Group standards were defined for surgical drapes on the basis of routine treatment data, the costs were calculated, and a budget drawn up. The surgical drapes include drapes while the patient is undergoing surgery, drapes for the interior of the operating rooms, and surgical gowns for the surgeons and the team. In 2006, the HELIOS clinics were purchasing 318 products from six suppliers. Today, 26 clinics already procure 54 products from one supplier. Product standards were also defined for surgery departments based on the various procedures. Only 21 product standards now cover 95% of all surgeries at HELIOS.
The increase in value-added tax to 19% had an appreciable impact on costs in 2007. The three percentage point increase impacted fully on expenses, with no compensation on the revenues side for the increase in VAT. It was, however, offset by cost savings through optimized product group management and the systematic bundling of volumes within the HELIOS Group.
