Procurement and Logistics

WACKER’s procurement volume increased in 2017, owing to strong volume growth and to price increases for raw materials and energy. The volume is broken down into raw materials and energy, and into services, materials and equipment. The procurement volume amounted to €3.2 billion (2016: €3.0 billion), a figure that includes investment-project-related procurements of €300 million. At 62 percent, the procurement rate – raw materials, services and other materials as a percentage of sales – was at the prior-year level of 62 percent. The number of suppliers remained constant at 11,500 (2016: 11,500).

At €1.87 billion, the Group’s energy and raw-material procurement volumes were 16.9 percent higher (2016: €1.60 billion), with quantities procured rising by a high-single-digit percentage year over year. After years of falling market prices, many petrochemicals and metals are now substantially more expensive. Price developments in the raw-material markets were influenced by the environmental audits conducted at raw-material companies by Chinese authorities, and by a limitation of coal production. This led to a price increase for petroleum-based raw materials. Energy prices, and especially the price of natural gas, were higher than in the previous year.

Shipping Volumes Substantially Higher

Shipping volumes rose significantly over the previous year due to good business performance. Burghausen, the Group’s largest logistics hub, increased its shipping volume to around 880,000 metric tons (2016: 825,000 metric tons). Shipments totaled 45,000 truckloads and 15,500 overseas containers.

We are employing digital systems to support the increasing worldwide networking of supply flows. These logistical tracking systems enable us to track our shipments in real time worldwide and respond promptly to any problems. The system is already in operation at WACKER’s German sites and will be rolled out internationally during 2018.