Porsche 2012 Annual Report Download - page 88
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Most input and raw materials saw declining
prices on the spot markets in 2012 because of the
ongoing crisis in the euro zone. However, despite
this trend, prices remained at a high level and were
subject to pronounced volatility. Overall, the mar-
kets were very strained and nervous, and crude oil
prices in particular were extremely volatile and
highly sensitive in relation to political uncertainties
and the impact of speculation.
The economic effects also impacted prices for
rare earths. In comparison to the historical high pric-
es reached in 2011, they declined on the Chinese-
dominated market. However, they remained at a
comparatively high level.
Developing new procurement markets
The Volkswagen group defined measures to
achieve the cost targets set as part of the group’s
Strategy 2018, and these were also systematically
implemented in 2012. One of these measures is
implementing the C3 Sourcing (Cost-Competitive
Country Sourcing) program to develop affordable
procurement markets. The objective of this pro-
gram is to use competitive procurement markets to
not only produce localized vehicle projects there,
but also to use them for vehicle projects in other
countries. Components from the C3 regions are
also being exported without Volkswagen having to
lower its quality standards.
The Volkswagen group further developed its
regional offices worldwide at a cross-business
area level so as to guarantee the share of C3 con-
tracts in the flow of goods for the long term. These
offices identify new suppliers and guide them until
the contract award decision, while procured com-
ponents management at the regional offices sub-
sequently ensures the ability of the suppliers to
deliver.
Southeast Asia is one example of where the
Volkswagen group has successfully developed new
markets. Via the regional office in Kuala Lumpur,
which opened in 2010, more than 250 suppliers
from the whole of Southeast Asia have already been
linked to the Volkswagen systems environment.
These local suppliers have been awarded a signifi-
cant purchasing volume.
2The company
Group management report
284