Lufthansa Receives BEST eProcurement Award

Lufthansa been named the best company in the field of e-procurement and today will receive the “BEST eProcurement Award”. 
This accolade follows a cross-sectoral study conducted by Germany`s Federal Association of Material Management, Procurement and Logistics (BME) and the business consultancy Hoffmann und Zachau (h&z). 

In a “Business Excellence Study” (BEST), MBE and h&z examined electronic procurement systems at 200 blue-chip companies such as DaimlerChrysler, BMW, Cisco and Fraport. Lufthansa`s corporate, Internet-based e-procurement strategy emerged as the front-runner. Lufthansa received the award for its “pragmatic and cost-effective e-procurement system” which was widely used throughout the Group and was the best in the industry, the judges said. “We are proud of our outstanding result in an industry-wide comparison,” said Dr. Dietmar Kirchner, who is responsible for procurement within the Lufthansa Group. “This award proves our strategy was right. We are optimally positioned and have increased our competitive edge.”
The Lufthansa Group`s e-procurement strategy is based on three separate platforms which encompass the entire procurement process. General goods and services are purchased via tenders and auctions in the virtual marketplace The Group uses the virtual trading platform trimondo for the cross-company purchasing of standard items such as office materials and computer equipment, while the Group`s airline-specific needs are met by the online platform Aeroxchange marketplace. “We recognised the opportunities for Internet-based procurement processes and today we consistently use all the platforms as standard tools for our procurement activities. This has enabled us to significantly reduce both our process costs and our acquisition costs,” Kirchner added.