Supplier Management

A long-lasting partnership between Infineon and our suppliers is vitally important for future business development. Purchasing products and services already accounts for more than 50 percent of our revenue, and its share of costs is continuously rising. Our purchasing capability and the competitiveness of our suppliers are strategic core elements of our company.

Only by working together with our suppliers to optimize the entire value chain will we be able to secure a distinct competitive advantage in the future.

For the reasons mentioned above, we have adopted a holistic, company-wide supplier-management approach.

Supplier Management is the organisation, controlling, and development of supplier relationships. Supplier Management is based on four interlocking modules, through which uniform sourcing, evaluation, classification and development of suppliers is achieved. It´s objective is to increase purchasing's contribution to Infineon’s bottom line profit.

Infineon will concentrate on its most important suppliers and develop/maintain strategic alliances with key suppliers.

Goals of Supplier Management are:

• The management of our suppliers, based on the total cost of the relationship
• The concentration of purchasing volume on the best suppliers
• The decrease in purchasing costs and increase in supplier performance
• The improvement of co-operation
• The optimization of the entire value chain in collaboration with our suppliers