Technologies · Systems · Solutions - Dürr

Consolidated management report
Purchasing management
67
Purchasing volume within the Dürr Group is equal to roughly two-thirds of total sales.
Therefore, purchasing is a key place to start utilizing cost-cutting potential. That is
why the earnings enhancement program also contains numerous coordinated
measures that improve purchasing coordination, resource pooling within the
Group, and market research performed by our purchasing organization.
We established a globally uniform purchasing information system so that information
about additional cost-cutting possibilities can be disseminated throughout the entire
company faster. In addition, new purchasing centers, for example in Brazil, China,
Mexico, and Poland, are supporting the procurement activities of the business units.
We furthermore strengthened cross-unit purchasing for high-quality product groups
with more personnel, and supplemented it with centralized management for selected
suppliers. Larger purchasing volumes and consistent utilization of quantity effects are
the basic prerequisites for strengthening our position in purchasing. That is why we
are moving ahead vigorously with the standardization of components. The common
database which is now available for general agreements simplifies and speeds up
purchasing processes. More favorable purchasing conditions are promised by targeted
use of online auctions. We will increase our use of this option in the future.
Our efforts in purchasing management have allowed us to offset some of the additional
costs that resulted primarily from the sharp rise in steel prices. We expect raw material
prices to continue increasing in 2005. We will counter the associated risks with even
more stringent selection and evaluation procedures for our suppliers.
Employees
Employees, by business unit
(as of December 31)
20.3%
45.2%
0.4%
11.6%
6.8%
15.7%
2004 2004 2003
Paint Systems 2,690 2,808
Final Assembly Systems 1,546 1,593
Ecoclean 909 932
Measuring Systems 2,084 2,255
Corporate Center 51 54
Continuing operations 7,280 7,642
Discontinued operations 6,015 5,105
Group 13,295 12,747
As of December 31, 2004, we employed 7,280 people in the Group’s continuing operations.
That is 4.7% fewer than on the previous year’s balance sheet date (7,642). The
decline was largely in the Measuring Systems business unit (excluding DTS), where
the workforce was reduced by 171 employees, primarily due to the closing of the premanufacturing
operation in Darmstadt, Germany. In Europe, the number of employees