Wincor Nixdorf operates an international purchasing system, enabling a global sourcing of products, components and assemblies, services and software from contracted suppliers. In all our activities, we seek to collaborate as closely as possible with our customers and partners, with a view to deriving the maximum possible benefit for all parties concerned. Not only does this approach deliver continuous improvements in quality, it also allows us to optimize purchasing and achieve significant cost savings. Consolidation of purchasing flows and close communication with subsidiaries and production plants generates additional cost advantages.

Decentralized purchasing units in the various countries are coordinated centrally by our strategic purchasing department. All procurement activities are undertaken in close collaboration with local offices and production facilities. By that we ensure that purchasing activities within the Group are undertaken in close collaboration with all parties involved.

Wincor Nixdorf is aware of the fact that keeping customers satisfied requires tremendous commitment and the ability to innovate, while consistently offering a high level of service. For this reason, we make every effort to maintain and, where possible, continuously improve the quality of our products and services. This includes, for example, working in close cooperation with our suppliers, with whom we regularly exchange ideas for possible new developments. During the year under review, Wincor Nixdorf extended its Group quality management network and reinforced it by means of a targeted quality campaign.

During the past fiscal year, Wincor Nixdorf further strengthened its strategic purchasing organization in the burgeoning Asian market, establishing deals with a number of additional local suppliers. In doing so, we considered it particularly important to gain a firm commitment from suppliers that they respect certain environmental protection considerations and adhere to the SA 8000 (Standard for Social Accountability) standard. Among other things, adherence to SA 8000 requires that no child labor be used, that employees work a maximum of 48 hours per week with one day off, that wages are sufficient to meet the needs of workers and their families, that humane working conditions are maintained and that documentation is made available (through certification) to prove that these conditions have been met.

Not only were we able to identify new suppliers in Asia, we also further expanded our production sites in Shanghai and Singapore, enabling us to shorten delivery times and counteract fluctuations in product prices.

As regards logistics, we are continuously looking for ways in which to optimize our supply chain, with the objective of reducing throughput times and increasing flexibility in the fulfillment of customer orders. Close cooperation with our global network of suppliers is a key factor in enabling us to achieve this.