PROCUREMENT
Efficient management of the value chain is important for Group profitability. Global procurement management, which assures the availability of goods and services as well as the consistent quality of the raw materials used in production, is a key element. In an environment characterized by ongoing cost-containment pressure from health insurers as well as price pressure, security of supply and quality play a crucial role. For this reason we are constantly striving to optimize our purchasing processes, to tap new procurement sources, and to achieve the best possible pricing structures while remaining flexibility and maintaining our strict quality and safety standards.
Within the Fresenius Group global procurement is coordinated centrally by competence teams, enabling us to bundle similar requirements and negotiate global framework agreements. These central coordinating offices organize purchasing for the production sites and arrange comprehensive quality and safety checks of purchased materials and goods. Current market and price developments are analyzed on an ongoing basis. In 2007, the cost of raw materials and supplies and purchased components and services was € 3,769 million (2006: € 3,709 million).
| in million € |
2007 | 2006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of raw materials and supplies |
3,266 | 3,250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of purchased components and services |
503 | 459 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | 3,769 | 3,709 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fresenius Medical Care
In 2007, Fresenius Medical Care introduced standard procurement guidelines for Europe. Their aim is to further harmonize and increase the efficiency of the procurement processes.
As expected, the costs for oil and other raw materials rose further in 2007. In the United States alone, the costs for gasoline and diesel have more than doubled compared to the levels in 2004. Cost savings have been achieved through continuous improvements in distribution and warehouse logistics. In addition, a new management system was introduced in the United States in 2007 which analyzes and coordinates all the logistics operations. However, these measures were not sufficient to offset the high fuel costs.
No savings were achieved in 2007 in our sourcing of plastics – plastic granulate is used in the production of dialyzers – resulting in slightly higher material costs than in 2006 despite larger volumes and bundling effects.
