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Group Management Report

 

7. Procurement

A significant focus of our activities was on exploiting potential for efficiency and effectiveness in both operational and strategic procurement. At the same time, it was imperative that the different requirements and development statuses of the individual GfK business units were taken into account. To this end, a concept for the functional development and definition of requirements was developed for our global procurement, which was rolled out accordingly in 2016 and will provide a basis for targets in the coming years. For all units, the objective is to establish transparency in spend in the long term and ensure that compliance requirements are met across all procurement governance areas. Supplementary to the already completed implementation of Supplier Relationship Management (SRM) systems in the regions of Northern Europe, Southern and Western Europe, North America and in the main hubs of Asia and the Pacific, SRM has now also been introduced in Central Eastern Europe/META. Already established and central procurement functions focused on the following areas:

The expansion of (global) strategically collated and negotiated procurement areas.

The implementation and execution of defined procurement strategies for cost and risk optimization.

The realization of actions for simplifying and speeding up  processes in GfK’s general procedure.

The introduction of ongoing improvement initiatives in operating procurement processes as well as the implementation of organizational synergy effects.

In financial year 2016, the value contribution of procurement towards ensuring and enhancing our competitiveness was achieved by realizing considerable external cost optimization, identifying internal efficiency measures and synergies and optimizing supplier risk management.

General