Central purchasing is the key contact for all CEWE business units in relation to cost, process, quality and innovation issues. Our tasks are not limited to traditional issues such as planning, scheduling, sourc-ing and warehoussourc-ing / production supplies for production material.
We also provide organisational and material support in the area of
“non-production materials / other costs” for all of the company’s de-partments. Our warehousing system contributes to the continuous improvement of our production plants’ performance capacity.
Central purchasing secures extension of cost / quality leadership position The continuous expansion of our product portfolio and challenges at every level of the company’s supply chains necessitate continuous optimisation of our supplier base. CEWE pursues the goal of achieving an improvement in its cost situation and ensuring long-term product and service quality together with strong innovative partners. We de-velop strong supplier partnerships for this purpose. We are a reliable but demanding partner for our suppliers.
Central purchasing at CEWE continues to stand not only for price-oriented procurement with the goal of expanding the company’s cost leadership, but also for integrated quality management.
Systematic management of purchasing potential and risks
Having strengthened our uniform IT infrastructure in all of our busi-ness divisions, we have comprehensive capabilities for identifying potential within each individual category as well as any risks within the scope of our portfolio. Thanks to specific planning, purchas-ing potential was once again realised in 2014 and purchaspurchas-ing risks minimised. For instance, the possible consequences of two looming delivery bottlenecks were averted through early competitive commis-sioning of proactively qualified suppliers.
In the past year, additional suppliers were once again integrated within the delivery chain, so as to reduce the risk of production and service failures. For delivery-critical production material especially, the company’s dual-supplier (dual-source) strategy was expanded for risk minimisation purposes.
Central purchasing strengthens CEWE’s capacity for innovation CEWE’s central purchasing division forms an integral part of its inno-vation process.
In 2014, CEWE successfully integrated and trained its partners in the field of “quality optimisation for CEWE PHOTOBOOK” and “optimised material handling for shipping processes”. Particularly in relation to new technologies in the field of production / mechanical engineering, in 2014 CEWE optimised its process technology for existing suppliers and expanded and improved this system through new suppliers. New production processes and optimised procedures were successfully launched with innovative partners.
In future, in the central purchasing division delivery partners will be assessed and selected not only in line with cost criteria, but also according to a comprehensive range of criteria (such as their capacity
for innovation). http://company.cewe.de/de/unternehmen/
zentraleinkauf/code-of-conduct-bme.html
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Process optimisation and transparency
We have significantly expanded our centralised electronic contract database. Contracts are now available online and can thus be moni-tored centrally instead of locally. In many areas, we have established firmer foundations for our strong working relationships with our sup-pliers through new or extended contracts.
Purchasing sustainability
CEWE signed up to the code of conduct of the German association of materials management and purchasing (Bundesverband Material-wirtschaft und Einkauf, BME) in 2009 and has been a member of the United Nation Global Compact since 2010.
CEWE is also a member of the “Lower Saxony Alliance for Sustainabil-ity” (Niedersächsische Allianz für Nachhaltigkeit). This alliance aims to improve the capacity for innovation and to realise environmentally-friendly economic growth in line with a model of sustainability.
In 2014, the company once again implemented its own supplier au-dits focusing on the issues of quality, product safety and social com-pliance (ban on child labour, high level of occupational safety / active health protection) for its Chinese suppliers, for all of its imported material groups. In this follow-up audit CEWE was able to once again verify compliance with sustainability requirements throughout the value chain.
Regional sourcing of material, wherever possible, is particularly criti-cal for sustainability in the area of purchasing. In 2014, we changed over to European sources for the frames for our canvas prints, an important material group.
Improved supply of materials through modern logistics processes We have now changed over our internal logistics system to new logistics concepts (PULL principle, kanban supply) in all of the rel-evant sub-segments. The volume of production work in progress is reduced by means of these procedures. At the same time, the reliability of the production supply system is improved through an increased delivery frequency. At our Oldenburg plant, through the introduction of a warehouse management system we have estab-lished additional opportunities for electronic documentation and management of these logistics processes.
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finance
Finance provides important contributions to the company’s manage-ment and operational value creation activities.
A modern finance department covers the areas of accounting and bal-ance-sheet preparation, controlling, investor relations and financial and tax management. Particularly in the context of the preparation and analysis of information, it is of prime importance for an effective management system. CEWE’s finance department is integrated in operational value creation activities for all of the company’s depart-ments. A value creation and business model-focused approach is increasingly significant. Relevant tasks include the preparation of business-related and notifiable information, its analysis and active incorporation in the decision-making process, coordination of internal and external financial communication, management of cost structures and thus value creation and important contributions to compliance and risk management.
Modern accounting and balance-sheet preparation require continuous improvements
Quality, safety and efficiency are particularly important for the com-plex processes of accounting and balance-sheet preparation. Accord-ingly, CEWE is continuously seeking to realise improvements in its operating procedures. This includes both system-based document flow and archiving processes and individual requirements within the scope of the accounting system. Adjustments and changes to tax regulations and IFRS standards are closely monitored and implemented within the scope of internal guidelines and processes. The electronic balance sheets of CEWE’s German companies were filed with the competent tax authorities in good time for the 2013 assessment period.
Market and CEWE’s business models influence controlling activities As a company with a successful brand profile, it is increasingly important for CEWE to be familiar with the efficiency and effec-tiveness of its budgets and to work towards their improvement.
Controlling provides close support and guidance for this objective.
Information analysis and the identification of opportunities involves an understanding of customer behaviour, the effect of marketing budgets and economic efficiency for the introduction of new prod-ucts and the continuation of the existing product programme and also moving into new business areas.
Finance plays a role in defining new business models
The finance division supports e-commerce, which continues to grow in significance. This entails improvements in all customer communica-tions activities, within the scope of financial processes. The company is continuously working on improvements to its collection processes, for improved efficiency and for communication of brand-related con-tents within the scope of handling of customer documents and cus-tomer relationships. New payment channels are regularly tested and launched in the company’s various markets, if they deliver benefits for the customers and offer further turnover potential.
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