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Group Management Report

 

7. Procurement

Requirements and tasks to procurement are becoming more and more complex. Targeting an optimized procurement function needs a procurement set-up and network that connects strategic and operational procurement activities, local and regional/global units, customer demands and supplier requirements as well as general procurement processes with business procedures in terms of communications, methods, processes and IT tools. 

Accordingly, the focus in 2015 lay on further organizational and strategic development as well as connecting networking our procurement functions throughout the world. We have established corresponding procurement functions and core processes in important countries. After the successful use of the Supplier Relationship Management (SRM) system in Germany, Switzerland, Austria, the USA and Canada, we also introduced the SRM system in the UK, France, and Japan last year. Additional countries will follow in 2016.  

The key elements of our SRM include:

› The realization of long-term and international framework agreements with strategic suppliers
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The implementation of so-called Advanced Negotiation Concepts and electronic awarding procedures
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Preferred supplier strategies in various cost categories

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Structured assessment of risks and opportunities of the procurement market within the GfK Risk Management Process
› Extensive transparency regarding supplier expenses
› Definition of our code of conduct for GfK suppliers based on GfK’s values; preparation of roll-outs

This way, we were able to continuously achieve improved conditions in purchasing as well as meet external and internal compliance requirements. All in all, GfK’s Procurement managed to make a distinct contribution to GfK’s “Shape for Growth” strategy in 2015.

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