Procurement of services
Diverse range of goods
Munich Airport does not have a conventional supply chain, but procures a wide range of products and services needed to operate and expand an international hub airport. Our range of essential products is comparable to the requirements of a small town: The 132 product groups range from things like office supplies and road construction to vehicles and buildings. In 2022, the Munich Airport Group’s procurement volume amounted to around 541 million euros (net), representing a 16 percent increase on the previous year’s figure. To tap into synergies, all procurement processes involving specialist departments and subsidiaries are handled by the central Group-wide category management system. Only merchandise, food and beverages, and medical equipment are procured directly by our subsidiaries, in some cases in cooperation.
Legal provisions in respect of procurement
The Munich Airport Group, a sectoral contracting entity, operates in the field of «Ports and Airports». As such, it ensures its procurement policy is consistent with public procurement legislation. Where public contracts are involved, calls for tenders are issued on a Europe-wide basis in keeping with the binding regulations under procurement law. The Group normally puts contracts that are not subject to public procurement legislation to tender based on a formal, company-specific process. A party submitting a tender must confirm it complies with the statutory provisions in order to rule out anything that would prevent it taking part in public procurement or tendering procedures. They must also provide evidence that they comply with the standards relating to quality assurance and environmental management.
Sustainable criteria in purchasing
We award contracts basis of cost-effectiveness and places particular emphasis on the utilization of materials and products that are both durable and use low levels of natural resources. For investment goods, any subsequent costs for servicing and maintenance (life cycle costs) are also considered. An awareness of sustainable procurement has already taken hold in our specialist departments. They specify economic, ecological, and social standards that are applied when purchasing goods and services. This applies equally to IT, the maintenance of buildings, the construction of new buildings, the vehicle fleet, and purchasing of promotional materials. When procuring promotional materials, the origin of the item, resource-friendly production, and recycling capability are important criteria. For vehicles and equipment for our vehicle pool, care is taken to ensure that environmentally friendly vehicles, specifically those with low CO₂ emissions, are procured.
Share of the airport’s procurement volume
Suppliers mainly from the region
Around 3,800 suppliers work for the Munich Airport Group. The number of suppliers has increased in 2022 compared to the previous year due to higher operating volumes. As Munich Airport is mainly supplied by business partners from the region, transportation distances are short and CO₂ emissions are low. Our subsidiary Allresto, for example, purchases mainly seasonal produce throughout the year: nearly all of which originates from Bavaria, and a good 50 percent of which comes from the area directly around the airport. An evaluation of the other parties to framework agreements was not performed in 2022 due to the coronavirus pandemic.
Responsible supply chain management
On January 1, 2023, the Supply Chain Due Diligence Act came into force. It aims to improve the international human rights situation by defining requirements for the responsible management of supply chains. In order to implement the new law in the best possible way, we have developed suitable measures and introduced them in the company. We are generally committed to internationally recognized standards, guidelines, and principles, which specifically include the Sustainable Development Goals, the Universal Declaration of Human Rights and the conventions of the United Nations, the core labor standards of the International Labor Organization, and the OECD Guidelines for Multinational Enterprises. We conduct our business activities primarily in Germany, where the protection of human rights is established by law. When tendering for international services, national and international laws and conventions apply. This is carefully documented when contracts are signed.
New Policy Statement on Human Rights
In the newly adopted Policy Statement on Respect for Human Rights, we commit to the highest standards of sustainability, which include environmental and social responsibility as well as good corporate governance. Furthermore, we are also guided by our Code of Conduct. It summarizes the key principles and rules of conduct as well as the standards we have set for ourselves in our dealings with business partners and stakeholders. The Code of Conduct provides the overriding framework of orientation for the Executive Board, as well as all managers and employees. It lays out the fundamental principles and rules for responsible and ethical conduct toward persons inside and outside the Group. In it, we undertake to comply with national and international laws, government regulations and official requirements as well as in-house rules.
Respect for human rights in international relations
The laws and statutes of the Federal Republic of Germany and the EU shall apply directly and without exception also in international relations. This includes the prohibition of anti-competitive behavior, the formation of cartels and monopolies, undeclared work, child labor, forced labor, and violence. Compliance with human rights and human rights procedures is ensured particularly in accordance with the principles of the United Nations (UN) Universal Declaration of Human Rights. Munich Airport has also published new rules of procedure for the complaints process. In addition, we are developing a concept to integrate the Code of Conduct and measures from risk management into the purchasing guidelines and the procurement process.