Mercedes 2009 Annual Report Download - page 90

86
Temporary easing of raw-material prices. Following the histor-
ical highs of 2008, the prices of many raw materials at first fell
significantly in 2009. Assuming that the worst of the economic
crisis is now over, we expect that prices will rise again with the
forecast revival of the world economy and that price fluctuations
will increase. This trend is already apparent in the prices of steel,
precious metals and oil, for example. Daimler partially protects
itself against fluctuations in raw-material prices in a number of
ways, including long-term contracts and hedges.
New supplier cooperation model. We work together with our
suppliers on the basis of performance orientation combined with
partnership. The Daimler Supplier Network – a supplier cooper-
ation model that we newly introduced in the year 2009 – provides
the framework for this collaboration. We focus on reliable busi-
ness relations and clearly defined performance criteria. As shown
in the diagram on page 85, in the Daimler Supplier Network we
allocate each supplier to one of three categories in line with its
importance for the Group. Various expectations and obligations
apply for each segment, with binding effect for both sides. As a
supplier rises through the segmentation, mutual expectations
and the obligations also increase. We examine each supplier’s
allocation to the respective segment with regard to purchasing
volume as well as the company’s innovative ability and perfor-
mance, which is documented in an external balanced scorecard.
Suppliers’ sustainable business practices. Our goal is to
ensure that our business practices are sustainable along the entire
value chain. To achieve this, we depend on business associates
that share our view of sustainable collaboration. Expectations in
terms of ecological and social aspects are formulated in Daimler’s
sustainability guidelines for suppliers. We monitor the extent
to which these expectations are fulfilled with the help of various
instruments. In this context, Corporate Procurement Services
is firmly integrated into our Group-wide sustainability activities.
Information technology
Efficient IT processes and secure IT systems. In an era of
rapid technological change, information technology (IT) plays a
key role within the Daimler Group. In a digital world, nearly all
business processes depend on IT. Secure and efficient IT systems
make a major contribution to our financial success. With approx-
imately 4,600 employees at more than 500 locations, IT has the
task of improving the divisions’ performance – from product
development to vehicle production to processes in sales and
accounting – with innovative systems. To these ends, we make
use of more than 5,000 applications and ensure that they are
functional at all times. In parallel, we continually optimize and
further develop the system landscape: In the year 2009 for
example, we succeeded in reducing costs per server by more
than 30% compared with the prior year.
Daimler’s IT organization supports more than 173,000 users
worldwide. An integrated network infrastructure is therefore the
backbone for smooth communications within the Group and
with external companies. Due to the growing risks for information
security and increasing legal requirements, throughout the
Group we deploy Information Security Officers, who are regularly
trained and controlled from headquarters by means of agreed
objectives.
Tailored IT solutions for our business operations. The IT
organization developed and introduced a wide range of tailored
IT solutions for our business operations in 2009.
For the production of the C-Class in China, we completely renewed
the local IT system landscape and fully integrated it into the
Daimler system landscape. Standard processes and standard sys-
tems were implemented, similar to other assembly sites outside
Germany. This allowed us to significantly reduce the costs of the
IT reorganization.
For our van production in China, we implemented a Daimler sys-
tem landscape together with an international team. Standardized
IT tools and processes guarantee Mercedes-Benz quality also at
production sites in growth markets such as China.