Automation of the ordering process in purchasing
Goal: Current commodity groups that could be assigned accordingly to a strategic buyer in order to work out and implement the strategy for them.
Duration: 2 months
Role in the project: Project Manager
Operational area, geographical:
Type: Mechanical / plant engineering
Turnover: 700 Mio. EUR
Number of employees: 4,200
On average, each employee in purchasing processed about 32,000 order items/year. Many of these items were recurring, thus time-consuming and the manual intervention without added value.
- Analysis of the purchasing behaviour of the previous 24 months
- Cost analysis and price negotiation of the 20% of items that account for the largest volume.
- Master data maintenance for material and vendors.
- Conclusion of quantity contracts where necessary and possible.
- Assignment of materials to standard suppliers in ERP system
- Automation of the ordering process for assigned materials
- Setting up of a reporting tool for the control and recognition of further potentials
- 5 Buyers from different teams
- Bi-weekly progress report to purchasing manager
- Purchasing in 3 plants
After 2 months the operative workload in purchasing had decreased by about 20% and each individual was asked to use this time to find and work on further potentials.