BMW 2003 Annual Report Download - page 28

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the process of vehicle development and production.
The selection of suppliers takes account of technical
expertise and innovative skills, as well as of ecologi-
cal and social criteria.
In spring 2003, the BMW Group initiated an in-
ternational investigation of the Group’s series sup-
pliers, with a view to evaluating quality standards
and compliance with social and ecological targets.
Approximately 90% of the Group’s purchase volume
is bought in from suppliers who have certified
environmental and quality management systems and
which specifically incorporate targets for “Design
for Recycling and Environment” for new vehicles.
The results of the survey also indicate that some
75% of the Group’s purchase volume is bought in
from suppliers who have established their cre-
dentials for dealing fairly with social and employee
issues by putting internal social standards into
place.
Safeguarding raw material supplies
In order to safeguard supplies and minimise cost
risks, all of the main international raw materials
markets which are relevant for the BMW Group are
permanently monitored. In the case of important
raw materials such as steel and aluminium, these
considerations determine the decision to enter into
contracts which in some cases can run for several
years. Changes in price of precious metals such
as platinum, palladium and rhodium are particularly
important and the hedging strategy for these items
is determined by a Raw Materials Committee.
Electronic networking with partners intensified
In mid-June 2003, the BMW Group Partner Portal
went online. This portal helps to integrate develop-
ment partners and suppliers into the Group’s work
processes and to link up processes involving other
external enterprises. The Group has consistently
endeavoured to involve its business partners, a
strategy initiated five years ago in the form of a
“Supplier Web” and built on ever since. The new
platform facilitates even simpler, more flexible and
faster cooperation between the BMW Group and
more than10,000 external users. Partners are linked
by standardised network interfaces and, via the
portal, have access to relevant process, product and
project information.
Worldwide sales network expanded
The BMW Group expanded its international sales
network in 2003 as part of its market offensive. In
Europe, the BMW Group has set up a number of
new sales companies to ensure that, in future, it will
have direct market responsibility in all countries be-
longing to the single European market. The markets
in Ireland, Denmark, Luxembourg and Greece have
been operated since October 2003 through group
subsidiaries, thus enabling the Group to offer seam-
less and first-class customer services along the
whole added-value chain within an increasingly inte-
grated European market. This also applies to the
Eastern European countries which are about to
join the EU: a sales company started operations in
Poland at the beginning of 2003. In order to take
advantage of the market potential in Hungary, the
BMW Group will be represented there by a group
sales company from May 2004 onwards. The
BMW Group founded a new subsidiary in Malaysia
in 2003 in order to strengthen its presence in the
newly emerging Asian markets. At the year-end, the
Regional mix of BMW Group purchase volumes
in %, basis: production material
Germany
Rest of Western Europe
NAFTA
Central and Eastern Europe
Asia/Australia
Africa
South America
17
8
3
3
16
51
2
Fleet consumption reduced further.
BMW Group makes use of worldwide purchasing
opportunities.
Partner Portal goes online.