Increased internationalization

We continue to focus our procurement activities in Germany, but we also rely on suppliers from abroad for competition reasons and to ensure reliability of supply. Outside of Germany, Austria and Switzerland, we are focusing on developing our supplier base in Eastern Europe and Asia. Our International Procurement Office Asia (IPO), which was founded in 2015, has identified hundreds of suppliers for DB Group over the last four years and has supported their development and participation in tenders in accordance with the processes for European suppliers. The IPO is also responsible for identifying innovative products and technologies for DB Group in the rapidly developing Asian market, for example in the areas of digitalization and electromobility. In the year under review, we received prototypes for freight cars, the first mini locomotives and the first electric bus manufactured in China, and we increased our presence with quality engineers at plants in the country. Business with a Russian freight car manufacturer also continued in the year under review. A prototype was found to be suitable for the requirements and other vehicle options were commissioned by us. International procurement markets are generally considered in all product group strategies, and procurement opportunities are explored, taking into account the criteria, quality, logistics and costs. With regard to DB Group’s greater number of construction activities, we are increasingly looking at the suitability of European construction companies from Denmark, Italy, the Netherlands and Spain. The objective is to qualify the suppliers before there is a specific tender.