Audi 2008 Annual Report Download - page 169

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COURSE OF BUSINESS
Sourcing
Audi Group Purchasing has set itself the core target of establishing long-term partnerships with
the world’s top-performing suppliers. In addition to overall economic efficiency, 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 Volkswagen Group Sourcing.
The cost of materials for the Audi Group in the past fiscal year amounted to EUR 23,430
(23,092) 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
15.6 %
AUDI HUNGARIA MOTOR Kft.
16.3 %
Other Group companies
3.1 %
AUDI BRUSSELS S.A./N.V.
65.0 %
AUDI AG
Sourcing activities had to cope with persistently high price levels in the first half of 2008 and
extremely volatile raw materials and energy markets in the second half of the year. Despite this
adverse climate, Audi Group Purchasing was again able to counteract the financial impact of the
past fiscal year thanks to its close cooperation with suppliers, its signing of long-term agree-
ments, and its extensive implementation of hedging strategies.
Sourcing will continue to gain strategic importance in the future along with the growing trend
towards derivatization in the Audi product portfolio. At the same time, partnerships with the
supply industry have been further intensified, so that joint solutions for both conserving mate-
rials and for using alternative materials can be identified early on in the product development
phase. Alongside purely economic considerations, ecological aspects in particular are taken into
account. For example, the recyclability of components is investigated.
With a view to gradually strengthening existing ties with the supply industry, the Audi Group
regularly holds a variety of events for suppliers. These events provide a platform for informal
exchanges and intensive networking. Another important tool is the web-based B2B supplier
platform shared with the Volkswagen Group. This platform assures swift communication and an
efficient sourcing process to the benefit of both the Audi Group and its suppliers.
Audi Group Purchasing, in tandem with the Technical Development Division, provides potential
partners with an opportunity to demonstrate how effective and innovative they are at various
events such as “TechShows.”