Procurement

An efficient management of the value chain is important for the Fresenius Group’s profitability. One key element is global procurement management, which assures the availability of goods and services as well as the consistent quality of the materials used in production. In an environment characterized by ongoing cost-containment pressure from health insurers as well as price pressure, security of supply and quality play a crucial role. For this reason we are constantly striving to optimize our procurement processes, to tap new procurement sources, and to achieve the best possible pricing structures while remaining flexible and maintaining our strict quality and safety standards.

Global procurement processes are coordinated centrally within the Fresenius Group, enabling us to bundle similar requirements and negotiate global framework agreements. Current market and price developments are also analyzed on an ongoing basis. In addition, these central coordinating offices organize purchases for the production sites and arrange comprehensive quality and safety checks of purchased materials and goods.

In 2010, the cost of raw materials and supplies and of purchased components and services was €4,732 million (2009: €4,286 million), as the table shows:

€ in millions 2010 2009
Cost of raw materials and supplies 4,092 3,715
Cost of purchased components and services 640 571
Total 4,732 4,286

€ in millions 2010 2009
Cost of raw materials and supplies 4,092 3,715
Cost of purchased components and services 640 571
Total 4,732 4,286

The cost of raw materials and supplies of €4,092 million were 10% above the previous year’s level (2009: €3,715 million). Purchased components and services accounted for 14% of the Group’s total cost of materials (2009: 13%).

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