Audi 2006 Annual Report Download - page 146
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1 4 4
Procurement
The purchasing operations of the Audi Group strive to establish lasting relations with the
world’s most efficient suppliers in terms of quality, reliability, innovativeness, service, price
and overall economy.
This is done in close cooperation with VW Group Procurement in order to make optimum
use of synergy potential.
The cost of materials within the Audi Group amounted to EUR 21,627 (19,139) million in
2006. This includes all raw materials and consumables used as well as purchased goods and
services.
Breakdown of the consolidated cost of materials by group company
16.8 %
Other group companies
15.7 %
AUDI HUNGARIA MOTOR Kft.
67.5 %
AUDI AG
Procurement was faced with major challenges in the past financial year as a result of the
considerable price rises for raw materials and energy. The financial impact on overall earn-
ings was largely cushioned in particular through intensive collaboration with the partners in
the supply industry. Meanwhile, inventory control and capacity management came under
closer scrutiny as a result of last year’s rise in production volume.
The Audi Group prepared the way for its ambitious growth strategy by selecting specific
suppliers for the future volume to be procured for new projects.
As a reflection of its increasingly close ties with the supply industry, the Audi Group
staged a Supplier Meeting for both existing and new partners. The outcome was a common
basis for tackling future projects, taking account of the challenges that the procurement
market is likely to present. This basis depends on intensive collaboration with partners in
the supply industry early on in the product development phase. This development has been
supported by increased use of the B2B supplier platform during the past year, decisively
improving communication between AUDI AG and its suppliers.
Business progress