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Deutsche Post World Net Annual Report 2007
Procurement
Purchasing of goods and services
Corporate Procurement purchased goods and services with a total value of about
€10.3 billion in the year under review. Spending was higher than in 2006 (€9.5 billion)
because of the integration of Williams Lea and other factors. Transport services are
generally procured by the individual units, with Procurement providing advice on
a project basis.
Procurement organisation streamlined
Procurement is a centralised function. e Group employs sixteen product group
managers worldwide who work closely together with regional procurement managers.
We have optimised Procurement’s regional structure with e ect from 1 December
2007; and the regions now comprise: Germany/Austria/Switzerland, UK/Ireland,
Europe/Middle East/Africa, North America, South America and Asia Paci c. Product
group managers and regional procurement managers report to the head of Corporate
Procurement. is line reporting structure enables us to pool our needs worldwide
while satisfying the service and quality requirements of internal customers.
We seek continuously to improve our performance. Our success in 2007 was cor-
roborated by a study produced by the European Business School, which compared the
purchasing departments of 35 other companies with our own. In direct comparison,
Deutsche Post Procurement ranked amongst the leaders as regards both procurement
cost and economies achieved in relation to procurement volume.
As ever, our success depends on the skills and quality of our employees. For this rea-
son, we extended our Fit4 Procurement programme in the year under review to em-
brace all the regions; we also conducted numerous subject-speci c training courses.
Compliance with environmental guidelines
e principal procurement initiatives during the year attached a high priority to envi-
ronmental aspects of our business. In Germany, for example, electricity supply agree-
ments were concluded primarily with producers using renewable energy resources.
From 2008 onwards, more than 60% of the electricity consumed by our headquarters
and branches will come from eco-friendly sources. is will enable us to reduce CO2
emissions by more than 200,000 tonnes a year. Furthermore, purchasing in tranches
enables us to pare administrative costs and secure price advantages for the next one
to two years. is procedure allows us to take market pricing trends into account
since purchasing is done in tranches throughout the year rather than all at once.
In the United Kingdom, the supply of electricity and gas was put out to tender. In the
light of this, our Group subsidiary DHL converted its 104 main facilities to renewable
energies. e target is to reduce annual CO2 emissions by 98,000 tonnes. In Asia and
Europe, we have reduced the size of the air waybill, thus eliminating 200 tonnes of
paper and the associated costs every year.
Procurement expenses, 2007
Volume: €10.3 billion
7% Air fleet
11% Ground fleet
24% IT & communication
8% Network supplies
5% Production systems
18% Real estate
27% Services