In the Jungheinrich Group, procurement is organised 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.
Purchasing at Jungheinrich
In 2017, the Jungheinrich Group's purchasing volume totalled €2,175 million (prior year: €1,885 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 €246 million (prior year: €196 million); storage equipment, accounting for €150 million (prior year: €116 million); steel assemblies, accounting for €125 million (prior year: €114 million), electric drive trains, accounting for €115 million (prior year: €112 million); and external services, accounting for €111 million (prior year: €104 million).
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.
Your ideas and innovations
Interested in showing Jungheinrich an innovative product that gives us — as the leading mechanical engineering enterprise for industrial trucks, warehouse and material flow technology — more of a competitive edge? If so, please contact us. We are open to innovations in the area of intralogistics.
Present your innovative product and seize the opportunity to convince us your innovation will add value for our customers and is capable of being integrated in the Jungheinrich product line.
Under the influence of our founder Dr Friedrich Jungheinrich, the company has developed a unique corporate culture that, through to this day, characterises the business activities and inter-staff relationships at Jungheinrich. In contrast to many companies which in the Fifties and Sixties were marked by top-down, strictly hierarchical management styles, Dr Friedrich Jungheinrich was already practicing dialogue. He delegated responsibility, gave his staff leeway at work and supported and promoted entrepreneurial thought and action. In those days the phrase that jokingly made the rounds at Jungheinrich was that the chief rule of management was “Get it done!” Today, too, these are the best preconditions for technical innovation and excellent products.
Like our company founder, we offer you round table talks characterised by fairness and full respect for your intellectual property. Jungheinrich is well known for its innovative products and curious to get to know your new ideas.