PDF, 3.2 MB - Pfleiderer AG

Procurement
In order to take advantage of economics of scale, Pfleiderer Infrastructure Technology has bundled
demand for raw materials, supplies and services used in production. The objective of its procurement
strategy is to tie up as little capital as possible, avoiding high inventory levels, yet at
the same time guaranteeing supply certainty for essential materials used in production. Where
possible, medium to long-term contracts are signed to cover the supply of standard materials.
Its multi-supplier strategy for the main materials and pre-products as well as other items ensures
that Infrastructure Technology is not dependent on individual suppliers. Shifting the call-off of
raw materials for cement production back to the suppliers has effectively reduced inventory storage
time to less than one working day.
Higher prices for steel felt during the reporting period were largely alleviated through existing
long-term contracts, resulting in only moderate rises in total material costs.
39
MANAGEMENT REPORT BUSINESS SEGMENTS