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The BME has awarded Deutsche Bahn AG the BME Innovation Prize2012. In the picture from left: BME National Board Member and member of the jury Prof. Dr.-Ing. Andreas R. Voegele, BME Senior Managing Director Dr Holger Hildebrandt, Jörg Manegold, (Head of Procurement, Deutsche Bahn AG), Peter Hintze (Parliamentary State Secretary at BMWi), Dr Volker Kefer (Technical Director, Integrated Systems, Services and Infrastructure Director, Deutsche Bahn AG), Dr Kay-Uwe May (Head of Principles Procurement, Deutsche Bahn AG), Dr Jürgen Marquard (BME Chairman of the Board)

Berlin/Frankfurt am Main, 7.11.2012 The Bundesverband Materialwirtschaft, Einkauf und Logistik e.V. (BME, or German Association Materials Management, Purchasing and Logistics) has awarded Deutsche Bahn the prestigious “BME Innovation Prize 2012″. The presentation took place in Berlin on 7 November 2012 during the 47th BME Symposium Purchasing and Logistics. At this year’s BME Symposium 2,200 participants discussed innovative procurement strategies at Europe’s largest purchasers’ summit from 7 to 9 November.

Deutsche Bahn received the prize for its innovative, holistic change concept in group purchasing. With this “Programme to Excellence”, development from a simple processor of procurement orders to an in-demand business partner with clear costs and results responsibility succeeded. This systematic programme was initiated in 2007 and was largely completed in spring 2012.

As part of the “Excellence Programme” important instruments and methods had to be built up in group purchasing and linked with innovative approaches. This includes continuous supplier management and reducing the number of creditors while simultaneously increasing master data quality. The programme also includes regular benchmark analyses for costs and setting price forecasts for the group. Furthermore, group-wide rules were introduced to create savings in procurement with IT support.  Applying auctions and game theories to specific award processes are also part of the package of measures as well as introducing formalised quality milestones in all relevant groups of goods. Career paths and a qualification programme were drawn up for the 900 employees. The overall concept has improved the quality and reliability of the rail company’s system. Thus, for example, the time required for maintenance stops has been markedly reduced through the significantly increased material availability. The results effects of the programme amount to more than 100 million euros. Group purchasing has formulated further development steps for the period up to 2016 and up to 2020.

“With this programme we have completed an important role change for purchasing within Deutsche Bahn. Purchasing will no longer be seen as a costs factor but it is an acting partner on an equal footing with a contribution to results for the group. The innovation prize is the confirmation of a successful process. This award makes us proud and is simultaneously an obligation,” explained DB Technology and Infrastructure Director Dr Volker Kefer.

Dr Jürgen Marquard, BME Chairman of the Board and jury spokesman: “Deutsche Bahn has managed to dynamically design a far reaching change management process successfully over a longer period of time. Here it was not just about identifying cost drivers, making supply chains transparent, binding suppliers and securing sustainability. The jury was also convinced that a group with such a complex structure succeeded in an exemplary manner in convincing staff of the necessity of a transformation process and making them fit for the requirements of modern procurement through corresponding measures.”