PurchasingMaterial costs represent the highest cost position for NORMA Group next to personnel costs. Because they significantly affect the Group's profits, purchasing and supplier management both play a decisive role in the success of the Group.
NORMA Group’s total worldwide purchasing volume amounted to EUR 365 million in 2015, 75% of this was spent on production materials and 25% on indirect materials and services.
The most important goal for the Purchasing Department is to reduce price risk and leverage economies of scale within the group through proactive management of the direct and indirect costs of materials and services purchased.
Purchasing and supplier management at NORMA Group is organized primarily on the basis of the following three higher level commodity groups:
• Steel and metal components (various grades / materials)
• Granules, plastic and rubber products
• Capital goods, non-production materials and services