palfinger at a glance

Customers and Suppliers
Consolidated Management Report / Market Review
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Purchasing
PALFINGER endeavours to keep inventory levels as low as possible. One of its main strategic goals is
to be able to quickly and flexibly respond to changes in the extremely volatile market. Particularly in
the last months of 2011, uncertainty regarding a further reduction in output figures was on the rise
again.
Essential procurement factors for the PALFINGER Group include advanced technologies and innovation,
primarily in the fields of hydraulics, electronics and high-tension steel. Therefore, procurement
focuses primarily on the EU market, where these issues are strongly promoted. PALFINGER’s most
important Eastern European procurement markets are Slovenia, Bulgaria, Romania and Croatia; due
to the current price pressure, these countries are gaining further importance.
PALFINGER maintains long-term relationships with its suppliers which contributes to continuously increasing
the development of components and consequently also the competitiveness of PALFINGER
products. This objective is supported by quality assurance agreements entered into with around 130
main suppliers. Regular audits and evaluations identify possible deviations and risks and, if required,
the suppliers are provided with the necessary assistance in the optimization process.
Supplier relationships are enhanced by including ecological and social issues as well as the prevention
of corruption. This helps to reduce, at an early stage, all image and default risks that might be
caused, for instance, by suppliers’ failure to comply with environmental requirements.
PALFINGER recently started to carry out surveys among all strategic partners and other suppliers,
such as paint shops, disposal contractors, cleaning and linen rental companies, regarding their
environmental management systems. The results of these surveys will be included in the supplier
assessment in the future.
In 2011, PALFINGER also implemented a Code of Conduct for all suppliers, which provides for a
commitment to environmental protection and social responsibility for the employees as well as
economic ethics. A passage referring to this Code has been incorporated in all contracts. Important
points include, among others, the prohibition of child labour, human rights violations and corruption,
and compliance is checked in the course of audits.
www.palfinger.com
CSR Code of Conduct
54 palfinger Annual Report 2011