Mercedes 2004 Annual Report Download - page 83

We have identified four important aspects of performance
from which our supplier criteria are derived: quality, systems cost,
technology and supply. These performance aspects are
supplemented by three behavioral aspects, aligned with our
social responsibility principles: communication, commitment and
integrity.
With the help of all seven criteria, we can define business pro-
cesses transparently, compare performance and discuss the
results of assessments constructively with the suppliers. This is
important to us, because a successful supplier network featuring
global and performance-based cooperation helps us to maintain
our position in the world market.
DaimlerChrysler Supplier Awards 2004. We expect global
benchmark performance from our suppliers. For calendar year
2004, we awarded our second DaimlerChrysler Global Supplier
Award to recognize outstanding supplier performance at this
level. Awards were earned in nine categories: chassis, electrical/
electronics, exterior, interior, powertrain, raw materials/body-
in-white, logistics, general goods/services, and manufactured
goods/services. The winning suppliers are:
– Anchor Manufacturing Group, United States
(raw materials/body-in-white),
– BEHR, Germany (interior),
– Brose, Germany (exterior),
– EMC, United States (general goods/services),
– Exel, United Kingdom (logistics),
– Federal-Mogul, United States (powertrain),
– GROB-WERKE, Germany (manufactured goods/services),
– NGK, Japan (electrical/electronics), and
– Trelleborg, Sweden (chassis).
Risk management in procurement. A continuously smooth
material supply is very important for us. Therefore, we have
well-established processes to monitor the financial health of
our supply base. In the light of the ongoing global economic
challenges for many suppliers, these tools have been enhanced
in recent years. These enhancements help to ensure that the
continuity of our production processes is guaranteed in our
plants and DaimlerChrysler’s financial risks are minimized. The
possible remedial measures that can be taken range from more
intensive discussion of specific financial parameters with the
suppliers’ top management to the joint design of new financing
plans. In 2004, many suppliers experienced financial difficulties.
Working closely together with our supplier partners, we were able
to avoid production losses caused by this situation. A key enabler
of our success is our supplier risk management process.
In addition, as a result of our global procurement management,
long-term contracts with key suppliers and close collaboration with
reliable partners, we have the benefit of a broad spectrum of
instruments for limiting the impact of rising raw-material prices
on our production costs.
Socially responsible behavior. In connection with our
purchasing activities, it is also very important for us to open up
opportunities in the world’s markets for minority suppliers
and historically disadvantaged groups of people. Thus, for example,
DaimlerChrysler’s Board of Management Member for Global
Procurement and Supply has also been active as Vice Chairman
of the National Minority Supplier Development Council. This
organization supports the growth of minority-owned businesses
in the United States. In addition, the purchasing activities of
DaimlerChrysler in North America sourced goods and services
worth over US $3 billion from minority-owned suppliers in 2004.
DaimlerChrysler is also committed to the Black Economic Empower-
ment initiative in South Africa. With our support, it was possi-
ble to establish a joint venture between a German media-services
provider and a black-owned South African printing company. In
the fourth quarter of 2004, DaimlerChrysler also led a trade
delegation to South Africa. Minority-owned automotive suppliers
from the United States were introduced to local black business
owners and entrepreneurs. This business mission should in-
crease the economic vitality of the South African supply base.
The Extended Enterprise®, a successful cooperation.
Successful supplier performance is recognized and awarded in the Electronics
component category. “The cooperation with DaimlerChrysler is characterized by a
focus on performance and mutual appreciation” said Chikanore Abe, President
and CEO of NGK. Receiving his award at the annual Global Supplier Award ceremony,
he is pictured between Jeffrey Wakai (l.) and Gunnar Güthenke (r.) from Global
Procurement. The trophy was designed by Chris Nelson (photo right, third person
from right) at the Center of Creative Studies in Detroit.
We are proud.
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