Global procurement strategy systematically implemented

With HOCHTIEF's total procurement volume at 76 percent of Group work done, procurement strategy is a critical success factor for the Group as a whole. The HOCHTIEF procurement strategy is based on a Group-wide Procurement Directive adopted in 2005. Among other things, this directive aims to improve the product value chain by involving highly capable partners from an early stage in the project cycle, consolidating the subcontractor and supplier base, standardizing services and applying uniform standards for subcontractor and supplier management. This allows us to pinpoint new potential synergies within the Group and to exploit them in our global procurement system. Departments and companies such as HOCHTIEF Global One, Turner Logistics and HOCHTIEF Construction Trade Europe are responsible for implementing procurement activities at divisional level.

Realizing cross-divisional synergies

HOCHTIEF further advanced its integrated procurement strategy for building materials and subcontractor services in 2006. The focus lay on intensifying cooperation between divisional procurement units. The success of these activities is reflected among other things in jointly negotiated and utilized master agreements to meet the procurement needs of all concerned.

Involving HOCHTIEF Facility Management from an early stage in building projects undertaken by HOCHTIEF Construction significantly cuts maintenance and operating costs down the line. In the Offenbach schools PPP project, for example, various fixtures and fittings were selected for buildings undergoing refurbishment with a view to ensuring cost-effective operation by HOCHTIEF Facility Management.