Mercedes 2010 Annual Report Download - page 91

Management Report | Profitability | 87
Increase in employees’ average period at the Group and in
the proportion of women in management positions. The
average period for which Daimler employees have been at the
Group increased in 2010 from 15.4 to 16.0 years. At the end
of the year, Daimler Group employees in Germany had been with
us for an average of 18.7 years (2009: 18.1); the average for
employees of Daimler AG was 18.9 years (2009: 18.4). The aver-
age period for our employees outside Germany was 11.3 years
(2009: 11.0). Women accounted for 13.5% of the total workforce
of Daimler AG at the end of 2010 (2009: 13.1%). In management
positions of levels 1 to 4, the proportion of women increased from
last year’s 10.9% to 11.6%.
Procurement
Goal: the world’s most effective supplier network. The
Daimler Group’s procurement organization consists of three
departments – Procurement Mercedes-Benz Cars and Vans,
Procurement Daimler Trucks and Buses, and International Procure-
ment Services for non-production materials – and is present
at more than 50 locations all over the world. The goal of the pro-
curement organization is to create the world’s most effective
supplier network and thus to contribute to Daimler’s overall suc-
cess.
Performance-oriented cooperation with our suppliers. Under
the motto “Commitment to Excellence,” the Daimler Supplier
Network (DSN) defines the business philosophy of Daimler’s
procurement organization. Its principles are performance
and partnership: With the help of the external balanced scorecard,
suppliers’ performance is measured in the categories quality,
technology, costs and reliability. To us, partnership means fairness,
dependability and credibility. The best suppliers are rewarded
each year with the Daimler Supplier Award for outstanding perfor-
mance.
Increasing raw-material prices. After historical lows in the prior
year, the prices of many raw materials increased again significantly
in 2010. This development was the result above all of expansive
monetary policies worldwide, rising industrial demand in emerging
economies, and the interests of financial investors. Daimler pro-
tects itself against price fluctuations with a number of measures,
including long-term agreements and hedging transactions.
Risk management continues to prove its worth. Also in the
year 2010, we continually monitored the financial development
of our suppliers in the context of our risk management. We focus
in particular on security of supply, the development of working
capital and the continuation of productivity-enhancing projects
from the year 2009. Although some of our suppliers had to file
for bankruptcy in 2010, we were able to avoid any major production
losses. Due to the great importance of suppliers for our pro-
duction processes, Daimler has established a Supplier Risk Board,
which holds regular meetings. This board has members from
various departments and if required develops action plans enabling
us to react quickly to the danger of supplier insolvency. We sup-
port distressed suppliers for example by making advance payments
for subsequent deliveries.
Sustainability in procurement. Our goal is to ensure that our
business practices are sustainable along the entire value chain.
Our expectations in terms of ecological and social aspects are
formulated in Daimler’s sustainability guidelines for suppliers.
Since the end of 2010, they have been a binding component of
our terms and conditions for purchasing in Germany, which are
valid for a large proportion of our suppliers. Other contracts and
agreement are gradually being adapted worldwide. In addition,
we apply various instruments to check and support the implemen-
tation of our requirements, including supplier training courses
as well as dialogues and other communication activities.