Lead buyers
Our lead buyers are responsible for process-critical product
categories, mostly with high volumes – for example, facades,
electrical and mechanical installations, lifts or concrete.
They coordinate their product categories and bundle
orders to obtain better terms. In addition, they negotiate
prices, conclude master agreements and closely follow
the development of the market and prices. Thanks to their
intimate knowledge of the market and long-term approach,
they make a major contribution to HOCHTIEF's early warning
system for risk management. HOCHTIEF successfully
expanded the lead buyer organization in 2008 and extended
it Group-wide to cover further item groups.
For example, HOCHTIEF is involved in the construction of
a research facility in northern Germany. One of the special
challenges this project poses is the integration of highly-specialized
technical equipment that is suitable for use under
the strictest biosafety conditions. The only manufacturer of
this highly innovative technology is a US company. Our
subsidiary Turner Logistics specializes in procuring medical
and research equipment and already works with this
manufacturer. Hence a lead buyer from Turner Logistics
carried out the negotiations, achieving a saving of about
15 percent as well as much better contractual terms and a
customized risk management plan with the manufacturer.
As the project progresses, Turner will ensure that the equipment
is installed on schedule and monitor all of the manufacturer's
acceptance testing on site.
Supplier park
During the reporting year, the lead buyers at HOCHTIEF
Construction expanded the supplier park for the key trades
technical building systems, facades, steel and concrete.
This means that suitable subcontractors can be involved
at an early stage. Close cooperation with these strategic
partners improves risk management and saves costs. Our
efforts have certainly paid off: Integrated supplier management
is an efficient way to secure HOCHTIEF against procurement
risks.
KaufPilot makes a saving of EUR 3.1 million
In 2008, HOCHTIEF benefited from optimized procurement
terms in 16 product categories over the electronic procurement
platform KaufPilot. These categories included
tools, health and safety equipment, office supplies and
energy. In addition to Germany, Poland and the Czech Republic,
the UK also has an electronic marketplace in local
language and currency. In the reporting year, 1,800 users
ordered 130,000 articles. The savings achieved through
improved terms totaled some EUR 3.1 million.
Direct purchasing harnesses additional potential
Through our trading companies HOCHTIEF Global Trade
and HOCHTIEF Procurement Asia, we are stepping up
international
procurement of favorably priced yet high-quality
supplies direct from manufacturers. By purchasing
directly
in this way, HOCHTIEF is harnessing additional
potential – for example, by eliminating premiums charged by
wholesalers or subcontractors. It also reduces the risk of
bottlenecks in the supply of materials because HOCHTIEF
can order larger volumes in good time. In 2008, for instance,
HOCHTIEF Procurement Asia purchased natural stone in
China for a building construction project in Hamburg, making
a saving of 30 percent.
Turner Logistics continues growth
Our US subsidiary specializes in innovative procurement
management services, concentrating on specialist procurement,
for example, in the field of medical equipment. Turner
optimizes the value chain by purchasing directly from
manufacturers, similarly to Global Trade and HOCHTIEF
Procurement Asia. In the year under review, the procurement
volume came to over EUR 320 million. This is mainly
down to the economic situation in the USA putting an ever
greater squeeze on the deadlines and budgets with which
our clients have to comply. Turner Logistics offers the
necessary procurement solutions to these problems. In
2008, the healthcare and education segments performed
particularly well. For instance, Turner Logistics planned for
and procured medical products to a value of EUR 150
million – an increase of 43 percent on 2007. Two examples:
For the University of Kentucky Hospital, the company procured
hospital equipment worth approximately EUR 16
million. Yale University commissioned Turner Logistics to
purchase mechanical and electrical products for some
EUR 12 million.
