Definition and structure of material group management

Goal: Material cost reduction of 20% through strategic processing of material requirements and corresponding supplier management.


Duration: 8 months

Role in the project: Project Manager

Operational area, geographical:

  • Brazil
  • Global


Type: Mechanical engineering
Turnover: 5 Bn. EUR
Number of employees: 25,000


There was no material group structure, requirements were placed with suppliers without long-term planning.

Purchasing volume > USD820 million

>30 plants worldwide


  • Project plan creation and approval
  • Team composition from long-standing experienced employees as well as young students
  • Data collection Purchasing volume (per plant / supplier / material group / material / origin / etc.) Contract conditions, etc.
  • Data and potential analysis
  • Potential matrix product group / savings potentials
  • Action plan per product group


  • 2 Data analysts
  • 3 Senior Buyers
  • 2 Junior Buyers


  • Weekly team meeting: comparison of target and actual status
  • Monthly meeting with business unit purchasing manager
  • Bimonthly reporting to business unit managers
  • Final reporting to the management / board of directors


  • Board of Directors
  • Head of the Business Units
  • Purchasing of the various plants
  • IT
  • Engineering
  • Quality


Approval for the introduction of a “Global Procurement” organization with the focus on strategic group-wide purchasing.


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