In the year under review, the Group centrally purchased goods and services having a total value of approximately €9.1 billion (previous year: €8.5 billion). As in previous years, this figure does not include transport services, which are generally procured separately by the divisions. However, the divisions received support from Procurement, which was greater in 2011 than in previous years. Procurement works continuously to reduce the Group’s expenditures and this includes providing support to the divisions to make important investments cost-effectively.
Corporate Procurement, for instance, has been providing support in the area of aviation since 2011, including involvement in the purchase of 18 new Airbus A300-600 aircraft. A further example is a master agreement for aircraft fuel, into which the department entered for European Air Transport, an express business and a Group subsidiary operating out of the hub in Leipzig, Germany. The agreement reduces annual costs by more than €1 million; the fuel can be called off as needed and fewer fuel transports increase energy efficiency.
The procurement team supported the MAIL division in the reporting year with the selection and order placement of new sorting solutions. Capacity and processing speed increased by around 40% as a result during the testing phase.
Procurement again focused on evaluating key suppliers and developing the Group’s relationships with them. The new financing and payment model which we have been testing in co-operation with a bank since 2010 in Germany and other European countries, was expanded in the reporting year. The Group benefits from this new model because it allows the divisions to optimise their working capital. Our suppliers also benefit as the model opens up advantageous financing options.