Audi 2007 Annual Report Download - page 156

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The Audi Group responded to heightened competitiveness in the automotive sector with
extensive measures designed to further enhance the appeal and quality of its products and
service. In addition, Audi made substantial efforts to establish a foothold in emerging mar-
kets in order to seize opportunities for growth there. This paved the way for high-quality and
sustained growth in keeping with Audi’s strategy.
The new records established in 2007 for production output, unit sales, revenue and, of
course, profitability are impressive proof of how effective these measures were.
Procurement
Audi Group Purchasing has set itself the goal of establishing long-term bonds with top-
performing suppliers worldwide. In addition to the overall economic picture, the selection
criteria of reliability, quality, innovativeness, service and price are particularly relevant. In
order to make optimal use of any joint synergy potential, this process is handled in close
consultation with VW Group Sourcing.
The cost of materials for the Audi Group in 2007 amounted to EUR 23,092 (21,627) million.
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
16.9 %
Other Group companies
16.9 %
AUDI HUNGARIA MOTOR Kft.
66.2 %
AUDI AG
The persistently high price levels for raw materials and energy again presented Audi Group
Purchasing with major challenges in 2007. Financial impact on profitability was nevertheless
largely cushioned by close cooperation with suppliers and the existence of long-term price
agreements.
Sourcing will gain increasing strategic importance with the sharp rise in manufacturing
volume and the growing trend toward model derivatization. In order to preempt the chal-
lenges of the future, partnerships with suppliers have been further intensified. Suppliers are
being involved in product development early on, so that economically advantageous solu-
tions can be identified together. Both ecological and purely economic aspects are taken into
account. For example, attention is paid to the recyclability of the materials used.
The Audi Group Supplier Meetings are an important tool for interfacing with the supply
industry. They provide a platform for informal exchanges and networking. Various events,
such as “TechShows,” provide companies with an opportunity to demonstrate how effective
and innovative they are.
The extended Web-based supplier platform additionally assures swift, ongoing commu-
nication, lastingly enhancing the efficiency of sourcing processes on both sides.
Course of business