Audi 2011 Annual Report Download - page 154

151
Management Report
134 Audi Group
143 Business and underlying
situation
143 Economic environment
145 Research and development
151 Procurement
151 Production
153 Deliveries and distribution
159 Financial performance
indicators
162 Social and ecological aspects
175 Risks, opportunities
and outlook
187 Disclaimer
PROCUREMENT
A major aim of procurement within the Audi Group is to establish long-term partnerships with
efficient suppliers. In addition to overall economy, suppliers are selected according to other
factors such as quality, innovation and reliability. The final choice is reached in cooperation with
Volkswagen Group Procurement so that both groups can exploit any synergy potential.
The cost of materials for the Audi Group came to EUR 28,594 (21,802) million in fiscal 2011 and
therefore accounted for the greater part of the cost of sales. This highlights the fundamental
importance of procurement for corporate success.
BREAKDOWN OF THE CONSOLIDATED COST OF MATERIALS BY GROUP COMPANY
13.0%
AUDI HUNGARIA MOTOR Kft.
20.7%
Other Group companies
3.8%
AUDI BRUSSELS S.A./N.V.
62.5%
AUDI AG
The ever-growing diversity of models and equipment versions poses fresh procurement challenges.
The increased number of vehicle launches and the high complexity of the supply chain have
necessitated a further intensification of purchased part and supplier management. Together,
tool and process experts from the procurement and quality assurance areas make sure that the
necessary capacity is available and the required quality standards are maintained, so that pro-
duction of new models starts successfully and the Audi production network is reliably supplied
with parts.
Sustainability occupies a central position within the Company’s procurement principles and supply
management approach. All suppliers and business partners are expected to uphold environmental
and social standards both for themselves and for their supply chain, and to reflect the Audi Group’s
high benchmark for entrepreneurial responsibility. The prompt involvement of suppliers in the
product development process can moreover unlock ways of reducing the amount of materials
used or of using alternative materials, for example.
PRODUCTION
The Audi Group substantially increased car production in fiscal 2011 to 1,365,499 (1,150,018)
vehicles. This total comprised 1,363,788 (1,148,791) models of the Audi brand and 1,711
(1,227) supercars of the Lamborghini brand. Alongside the market’s generally positive devel-
opment, the rise can be attributed to the continual introduction of new products.