Porsche 2006 Annual Report Download - page 107

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Risk Management for Suppliers
In the 2005/06 fiscal year, Purchasing introduced a
risk management strategy for monitoring the financial
stability of suppliers. This was extended to further con-
tractors during the review year. Thanks to specific
early recognition measures, such as finance rating,
consistently implemented by Porsche, supplier risks
could be identified in good time and subsequently jointly
tackled under a cooperative approach. Even so, there
were individual insolvency cases amongst contrac-
tors, although these did not impact series production.
In the majority of cases Porsche was able to help
ensure the continuity of the company concerned. In
general, however, Porsche suppliers demonstrate a
high level of financial stability, which is in part due to
Porsche’s careful selection of partners.
Supplier performance once again improved in the
2006/07 fiscal year. Key parameters were monitored
and compliance was even more reliable thanks to more
sophisticated assessment procedures. Apart from
series-production suppliers, all development and
customer service contractors are now also included
in the assessment process. The general positive
standing of our series-production suppliers was
confirmed.
More sophisticated procedures have also increased
supplier performance transparency. This improves the
likelihood of identifying difficulties at an early stage.
Porsche works with contractors to identify measures
for improving quality and performance on the basis of
a detailed analysis. These measures are subsequently
implemented and this approach has in several cases
brought very rapid improvements. The ten best com-
panies were again honored with Porsche Supplier
Awards at a special event attended by 200 Porsche
Partners.
Support for Major Construction Projects
During the 2006/07 fiscal year, Purchasing super-
vised a number of construction projects. The largest
single project was the new Porsche Museum at the
company’s headquarters in Stuttgart-Zuffenhausen.
In addition, the ‘Powertrain Center’ at the Develop-
ment Center in Weissach was completed. The plant
extension in Leipzig and preparations for the future
manufacture of the Panamera also required a lot of
attention. Alongside construction, these preparations
principally entailed the procurement of machinery
and facilities and the selection of partners for long-
term services. In accordance with Porsche’s corpo-
rate philosophy, the company pays special attention
to encouraging local construction companies and
suppliers.
The Porsche group will further standardize and sim-
plify purchasing procedures with a view to tapping
further improvements. Pilot projects were implemented
during the review year.