Audi 2014 Annual Report Download - page 163

ECONOMIC REPORT
RESEARCH AND DEVELOPMENT // PROCUREMENT
>> 163
// VEHICLE SAFETY
Audi again received a variety of awards for vehicle safety in the
year under review. These included a top five-star rating for the
A3 Sportback e-tron from the association of European transport
ministers, automobile clubs and insurance associations under
the “European New Car Assessment Programme” (Euro NCAP)
(www.euroncap.com/results/audi/a3_etron/587.aspx).
The crash experts at Audi Vehicle Safety can draw on many years
of experience. Other brands are to benefit from this expertise
too in the future. The first ever crash test involving a motorcycle,
the Ducati Multistrada D°Air®, and an Audi A3 was carried out
in the year under review. The primary objective of arranging
this crash between motorcycle and car was to try out the world’s
first motorcycle with integral sensor system, which activates
an airbag jacket in the event of accidents in order to enhance
motorcycle safety.
PROCUREMENT
/ PROCUREMENT STRATEGY
Identifying high-performing suppliers worldwide and working
with them in partnership is a key task of Audi Group Procure-
ment. Alongside overall economic efficiency, other decisive
factors are quality, innovativeness, reliability and international
value creation. We pursue four strategic goals at Audi Pro-
curement: to increase the competitiveness of the Company, to
develop a global procurement network, to source innovations,
and to guarantee quality and sustainability in the value chain.
A further aim is to make this area even more attractive to
employees and applicants. In order to exploit Group-wide
synergy potential to the full, we select suppliers in close con-
sultation with Volkswagen Group Procurement.
The cost of materials came to EUR 36,024 (32,491) million in
2014. This includes expenses for raw materials and supplies,
as well as purchased goods and services.
/ GLOBALIZATION THROUGH LOCALIZATION
As a result of increasing globalization, the strategic signifi-
cance of procurement is growing. Our international growth
necessitates a worldwide procurement and production network
along with innovation management. This presents us with the
challenge of identifying and developing new local suppliers at
our locations. On the other hand, we also want to develop
capacity at existing suppliers.
We are therefore increasingly choosing partners who have a
global footprint and can work hand in hand with us to develop
new locations worldwide. This localization strategy enables us
above all to reduce risks from exchange rate fluctuations,
increase the reliability of supplies and optimize the costs for
parts and logistics.
/ QUALITY
In order to assure premium quality at all locations worldwide,
we regularly hold training courses and workshops on site at
our suppliers. To accompany the development of the San José
Chiapa (Mexico) plant, for example, we are implementing an
intensive, tailored supplier development program. Over and
above the standard basic training and suppliers’ days, this
includes giving our suppliers training in eight additional devel-
opment modules, spanning topics such as quality, logistics and
tools. By the time production starts there, we will have quali-
fied around 160 suppliers for our Mexico project. This task
calls for close collaboration between a large number of Audi
areas, from Planning, Development and Procurement to
Production, Logistics and Quality Assurance.
/ OPTIMIZING COSTS THROUGH VALUE ANALYSIS
Continually optimizing costs is another central objective of
Audi Procurement. New technologies such as electric mobility
and digitization present a particular challenge in this respect.
We will therefore use the tool of value analysis more inten-
sively and earlier on in the product creation process.