Mercedes 2001 Annual Report Download - page 52

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48 Global Procurement & Supply
Close cooperation with suppliers. DaimlerChrysler
purchased goods and services worth €106.5 billion
from suppliers in 2001 (2000: €113.3 billion). In 2001,
Global Procurement & Supply (GP&S) purchased goods
and services totaling €101.2 billion (2000: €103.1 bil-
lion) for our automotive divisions, these figures include
non-production materials.
Due to competitive pressures, our procurement
activities in 2001 again focused on cost-reduction
measures. We streamlined processes and achieved
significant cost savings through better exploitation of
expertise throughout the Group. For example, on the
model of Mercedes-Benz we strengthened the links
between development and procurement at Chrysler
Group.
Savings at the Chrysler Group. The short-term unit-cost
reductions set out for 2001 in the Chrysler Group turn-
around plan for 2001 were surpassed. This achieve-
ment was due to Chrysler Procurement’s ability to
obtain significant cost reductions from suppliers. The
second phase of this program, which is already under
way, involves the substantial reduction of long-term
system costs.
Utilizing the potential of supplier networks
■Total purchasing volume of €106.5 billion
■Further increase in online transactions
■Optimization of processes with suppliers
e-business gains in importance. GP&S uses e-business
to optimize and accelerate processes as well as to make
them more transparent. e-business enabled significant
purchasing cost reductions. We see exceptional poten-
tial in the areas of e-procurement and logistics (supply
network collaboration). Total e-business was up sharply
in 2001.
Online bidding again played an important role
in procurement. Online bidding facilitates price optim-
ization and provides tremendous time saving. Such
bidding events also benefit suppliers by enabling them
to better assess their position with respect to their
competitors.
In one of the largest online bidding events, we
purchased 1,200 different body-in-white parts in 80 dif-
ferent subgroups. Covisint, a company whose share-
holders include DaimlerChrysler and several other au-
tomotive manufacturers, provided the technology and
was also responsible for carrying it out. Covisint is a
service company that, among other things, manages an
Internet exchange for online bidding events in the
US and Europe.
The Supply Network Collaboration unit, which
collects precise data on all processes – from supply to
production – in near real-time, conducted several
promising pilot projects in North America and Europe
in 2001.
€106.5 bilion (2000: €113.3 billion)
Purchasing Volume
Mercedes-Benz
Passenger Cars & smart
Chrysler Group
Commercial Vehicles
Other 5 %
19 %
43 %
33 %