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mAN<strong>AG</strong>EmENT rEPOrT<br />

Testing and approval agreements are also signed with customers<br />

outside DB Group. DB Systemtechnik bundles all of our railway<br />

expertise. It offers manufacturers the use of its certified testing<br />

laboratory at an early stage of the development process. This<br />

early consultation on approval and testing requirements, par-<br />

ticularly for European approval processes, optimizes costs and<br />

efforts, and significantly accelerates the approval process. During<br />

the year under review, such approval tests were carried out on<br />

behalf of industrial firms for vehicles such as Desiro, E-Lok<br />

Vectron, ETr 610, X 61, XrE and TGV Duplex for Germany and<br />

other European countries.<br />

Comprehensive system optimizations comprising the further<br />

development of technology for the infrastructure and vehicles<br />

are extremely important for the rail mode of transport. Based<br />

on this task we are driving technical innovations needed to<br />

ensure commercial success and that contribute to a constant<br />

increase in production efficiency as well as operational quality.<br />

In the year under review, for example, we concluded the “GZ<br />

1000” project, proving that freight trains with a length of up to<br />

1,000 m were feasible.<br />

Research and development<br />

As a service provider, DB Group does not conduct its own<br />

research and development in the narrow sense of the term.<br />

Due to our technological competence and broad operational<br />

experience, we do, however, initiate user-oriented developments<br />

and support industrial firms with services including extensive<br />

testing capabilities.<br />

proCUreMent<br />

The procurement of materials and services from the external<br />

supplier market is a significant lever to control processes and<br />

influence cost structures. A uniform Group-wide procurement<br />

policy allows standardized handling processes to be applied,<br />

and also ensures a uniform appearance in the market.<br />

The year under review was still largely influenced by the<br />

after-effects of the economic and financial crisis. In order to<br />

counteract this, we established a program for optimizing supply<br />

services in the procurement area. Within the framework of this<br />

program all of the product groups were subjected to a systematic<br />

analysis of their needs and potential levers.<br />

Optimized life cycle costs are a key criterion here. In addition<br />

to the immediate cost issues, the focus was primarily on capitalintensive<br />

investments in order to optimize the level of committed<br />

capital.<br />

These activities were supported by the parallel launch of<br />

international procurement teams. The purpose of these teams<br />

is to implement best-buy strategies in the global supplier context.<br />

The goal here is to create savings and anchor them in global<br />

framework agreements.<br />

In addition to the immediate program building blocks to<br />

optimize procurement services, progress was also achieved for<br />

significant strategic purchasing tools: during the year under review<br />

a new supplier management system was introduced. This is a<br />

defined overall process that qualifies, evaluates and develops<br />

suppliers. Using continuous IT support, it creates a tool for strategic<br />

procurement that can systematically develop our portfolio<br />

of suppliers, improve its quality and inspire innovations. This also<br />

includes creating the corresponding content-related concepts.<br />

The supplier evaluation system will be in place starting 2011.<br />

The total volume of orders placed of DB Group during the<br />

year under review amounted to € 22.8 billion and was higher than<br />

previous year’s level (previous year: € 19.2 billion). In particular,<br />

the € 9.8 billion in freight and freight forwarding services purchased<br />

from carriers was significantly higher than in the previous<br />

year (previous year: € 7.3 billion). In addition, the volume of<br />

industrial products purchased, with an order volume of € 4.2 billion<br />

(previous year: € 3.5 billion), was also greater than in the previous<br />

year. Construction and engineering services procured totaled<br />

€ 3.8 billion (previous year: € 4.0 billion).<br />

The procurement of third-party services, with an order<br />

volume of € 2.7 billion, was also above the level noted in the<br />

previous year (previous year: € 2.3 billion). In the area of cableand-pipe-bound<br />

power and fuel, the order volume amounted to<br />

€ 2.3 billion, which was slightly higher than the previous year’s<br />

level (previous year: € 2.1 billion).<br />

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