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Procurement

An efficient management of the value chain is important for the Fresenius Group’s 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 agreements 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. Current market and price developments are also analyzed on an ongoing basis. In addition, these central coordinating offices organize purchases for the production sites and arrange comprehensive quality and safety checks of purchased materials and goods.

In 2011, the cost of raw materials and supplies and of purchased components and services was €5,067 million (2010: €4,732 million), as the table shows:

€ in millions 2011 2010
Cost of raw materials and supplies 4,404 4,092
Cost of purchased components and services 663 640
Total 5,067 4,732

€ in millions 2011 2010
Cost of raw materials and supplies 4,404 4,092
Cost of purchased components and services 663 640
Total 5,067 4,732

The cost of raw materials and supplies of €4,404 million were 8% above the previous year’s level (2010: €4,092 million). The increase was mainly due to higher production volume. Purchased components and services accounted for 13% of the Group’s total cost of materials (2010: 14%).

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