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Procurement
The Business Segment Engineered Wood sets its procurement strategy to safeguard its supply
base. This entails assuring that supplies meet delivery dates, and are acceptable in terms of
quality, environmental and safety standards, quantity and cost.
Quality requirements and environmental standards defined by the Business Segment Engineered
Wood provide a basis on which suppliers are selected and assessed. Continuous assessment is
carried out on materials and goods to ensure that quality levels remain constant. Pfleiderer pursues
a multi-supplier strategy for its essential materials and sites. This ensures that it remains
independent and can guarantee supplies. In order to avoid any unnecessary stockpiling of inventories
which binds cash, major chemical pre-products and raw materials are supplied on a
“just-in-time” basis. Contracts outlining prices and quantities with major suppliers of chemical
pre-products, ensure that quantities purchased and prices paid remain largely constant as a
factor of planning.
While prices paid for most chemicals remained stable, considerably higher prices were paid for
urea-based glues and paraffin, mainly due to the increase in oil prices.
Energy needed in production is guaranteed at the major production plants in Germany as the
Company runs its own co-generation plants.
Interwood GmbH
The most important raw material used in the production of particleboard is wood. Particleboard
and MDF board require timber, sawmill by-products and used wood. As a procurement, plant
supply and trading organization, Interwood GmbH has an annual trading and transport volume of
around 4 million metric tons. It is supported in this role by its affiliates Heller Holz GmbH and
the joint venture bi.om GmbH & Co. KG.
Legislation in Germany favors the use of renewable forms of energy, promoting the recycling
of used wood. Procurement of wood used in co-generation plants in Neumarkt, Gütersloh, Nidda
and Rheda-Wiedenbrück, as well as material recycling for particleboard production in Germany,
is now bundled into Interwood GmbH. The large volumes involved and the ongoing optimization
of logistics in the procurement process, ensure that every potential means of reducing costs is
applied. Pfleiderer’s daily requirement for timber, sawmill by-products and used wood comes to
around 850 truckloads.
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