Procurement

An efficient management of the value chain is important for the Fresenius Group profitability. One key element is global procurement management, which assures the availability of goods and services as well as the consistent quality of the materials used in production. In an environment characterized by ongoing cost-containment pressure from health insurers as well as price pressure, security of supply and quality play a crucial role. For this reason we are constantly striving to optimize our procurement processes, to tap new procurement sources, and to achieve the best possible pricing structures while remaining flexible and maintaining our strict quality and safety standards.

Global procurement processes are coordinated centrally within the Fresenius Group, enabling us to bundle similar requirements and negotiate global framework agreements. These central coordinating offices organize purchases for the production sites and arrange comprehensive quality and safety checks of purchased materials and goods. Current market and price developments are analyzed on an ongoing basis.

In 2009, the cost of raw materials and supplies and of purchased components and services was € 4,648 million (2008: € 4,204 million), as the table shows:

in million € 2009 2008
Cost of raw materials and supplies 4,077 3,668
Cost of purchased components and services 571 536
Total 4,648 4,204

in million € 2009 2008
Cost of raw materials and supplies 4,077 3,668
Cost of purchased components and services 571 536
Total 4,648 4,204

The cost of raw materials and supplies increased by 11 % to € 4,077 million (2008: € 3,668 million). Purchased components and services accounted for 12 % of the Group’s total cost of materials (2008: 13 %).

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