Purchasing at Jungheinrich
Purchasing and logistics
In the Jungheinrich Group, procurement is organized by product group. All sourcing needs are structured according to a groupwide product group management system that encompasses 40 main product groups. This is supplemented by 10 additional main product groups in which post-serial needs are bundled.
In 2016, the Jungheinrich Group's purchasing volume totalled € 1,885 million (prior year: € 1,745 million) and broke down into production material and post-serial material, merchandise and indirect material.
All sourcing needs are generally managed by the groupwide product group management system. A long-term procurement strategy adhering to the principles of sustainability ensures cost-optimized purchasing conditions. This approach is underpinned by well-founded cost engineering and holistic cost assessments. Above and beyond this, resolute, crossfunctional collaboration on all development and sourcing processes unleashes savings potential across the entire value-added chain.
Slightly over 90 per cent of the purchasing volume was allocable to Europe. This was due in part to the company's strong presence in this region. In addition, most of the production sites are located in Germany.
The best-selling product groups were batteries, accounting for € 196 million (prior year: € 171 million); storage equipment, accounting for € 116 million (prior year: € 97 million); steel assemblies, accounting for € 114 million (prior year: € 103 million), electric drive trains, accounting for € 112 million (prior year: € 100 million); and external services, accounting for € 104 million (prior year: € 93 million).
Disproportionately strong increases were recorded above all by the storage equipment product group. This is the result of the company's strategic orientation as a provider of holistic solutions for logistics systems.
Purchasing controlling is a priority at Jungheinrich. The centrepiece of purchasing controlling is the purchasing cockpit in which all relevant key figures are collected. It is based on SAP-BI (Business Intelligence) and SAP-BW (Business Warehouse) and builds a bridge from strategy development to the measurement of implemented measures and results.
The core element of reporting is the change in the cost of materials, a key figure that reflects the impact of earnings on the income statement. The effects on prices of external factors such as changes in foreign exchange rates and commodities are also measured and taken into account when making purchasing-related decisions.
Jungheinrich redesigned its contract management system in order to satisfy the variety of demands placed on modern contract management in practice. This undertaking concentrated on drawing up uniform contractual standards based on modular contract procuments as well as on establishing a computerized contract creation and archiving system.
The redesign laid the groundwork for increasing the number of master agreements even more. Furthermore, computerized contract creation and the simplification of contract wording shorten processing times.