Procurement, Production, and Logistics.
Focus on end stages of production and supply chain optimization.
In the year under review we implemented various measures to fundamentally realign our hardware strategy in a series of projects. This process began in the previous fiscal year and involves adapting our manufacturing capacity to the level of demand. In future we can focus on the end stages of system production. We have reduced the degree of vertical integration at Wincor Nixdorf by further expanding the group of suppliers based in countries with more favorable cost structures and by outsourcing production processes.
In the period under review, we introduced a comprehensive package of measures designed to push ahead with the transformation of our production network, increase flexibility, and exploit favorable effects relating to our cost structures. A summary of these measures is given below.
- We sold our tool production arm, which had around 70 employees, to Autmaring GmbH in Paderborn. Autmaring will maintain tool production at the site. It has taken over the entire workforce within this area from Wincor Nixdorf and is now a long-term strategic supplier.
- We set up a joint venture with Aisino for the Chinese market. The Chinese company specializes in IT security solutions, cashless payment terminals, and chip cards for financial transactions. Trading under the name Aisino Wincor, the joint venture develops, produces, and markets IT solutions for Chinese banks and retailers. Our production site in Shanghai is one component of the joint venture, although it will continue to produce for Wincor Nixdorf.
- In fiscal 2015/2016, we also established a cooperation covering the final stages of system production for the Brazilian market.
- Turning to the Indian market, here too we set up a new cooperation with our long-established partner AGS Transact Technologies covering the joint development and local end production of ATMs. Wincor Nixdorf will supply some of the core system components.
- In the area of sheet metal fabrication we initiated a project to adapt our in-house capacity and have now begun to source sheet metal components from suppliers in Eastern Europe.
Business unit with overall responsibility for hardware supplies.
Our Systems business unit was established in fiscal 2014/15. In the year under review it took over full end-to-end responsibility for hardware supplies. Country-based and client-specific modifications of standard systems are now carried out where the systems are actually produced, rather than at configuration and distribution centers in the various countries as was previously the case. To this end, we strengthened our capacity to implement client-specific modifications at our site in Paderborn and have now integrated an external logistics provider into our distribution processes.
Optimized supplier network.
As part of the strategy to reduce the degree of vertical integration at Wincor Nixdorf, in fiscal 2015/2016 we concentrated on measures to further optimize our supplier network by procuring more of the inputs we need from suppliers in countries with more favorable cost structures. Against this background, we conducted a thorough review of all our purchasing activities and terms in order to generate major savings. Additionally, negotiations with our main suppliers helped us to achieve the planned reduction in our costs.
Embracing quality at every level.
Wincor Nixdorf ensures maximum availability by offering customers solutions that are extremely failsafe. We believe in product quality and an outstanding range of services, even where solutions are highly complex.
Our approach to quality is holistic, starting with the development of hardware, software, and services, and extending to production, followed by the implementation and operation of solutions at client companies. That means taking account of all influencing factors in our assessment of quality.
Our sites, development hubs, and production facilities form a global quality network in which all Group undertakings aimed at achieving quality are coordinated. As part of the relocation of production capacities to business partners, which commenced in the previous year, we continued to work with those firms to harmonize processes and establish common standards. The aim is to ensure the highest possible levels of quality across the joint production network for the long term.