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Fresenius Kabi

In 2012, the volatile price development on the global commodity markets influenced the procurement activities of Fresenius Kabi. The underlying commodity prices for most of our procurement materials increased over the first half of the year, but recovered mid-year. Some commodity prices increased again in the second half of the year and ended the year at either the same level as the previous year, or even higher.

Global economic trends and financial policies contributed to these price movements, as did natural events. The financial crises in Europe and the United States played a major role here. Other factors included economic developments in China and Asia as a whole, exchange-rate volatility, political developments in the Gulf region, and the drought in the United States, which badly affected the harvests that followed. Private and institutional investors now also play a key role; for purely financial reasons, the volume of their speculation on commodity prices has been growing for years.

  • This pushed up the prices for plastic granulates based, for example, on ethylene. In contrast, prices for other plastics that we use to manufacture plastic injection molding parts remained as stable as they had been in the previous year.
  • Prices for basic agricultural commodities, for example individual milk derivatives, rose to a very high level. Corn even hit a new all-time high. Corn is the basis for a number of carbohydrates we use (e. g. waxy maize starch).
  • After the price of paper – the basis for our cardboard packaging – initially increased, it recovered slightly at midyear. Ultimately it remained at the previous year’s level.
  • We succeeded in signing important agreements for a number of active ingredients for IV drugs in 2012 and 2013. These agreements ensure their flexible and timely availability at competitive prices.

The price development on the energy markets continued to be very volatile and driven by speculation. Overall energy prices for Fresenius Kabi increased in 2012. Reasons for this are fluctuations on the stock exchanges in 2011, the nuclear accident in Japan in March 2011, and the premium for renewable energies, which was increased slightly in 2012. The weaker euro combined with the very high oil price has also increased our gas costs.

In 2012, we initiated our “Supplier Rating” Project in order to further increase the efficiency of our sourcing processes. The aim is to analyze our supplier relationships and, based on our findings, to optimize the collaboration with our suppliers and to reduce the costs of our sourcing processes.

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