Definition and structure of the purchasing organization Global Procurement
Duration: 2 years from analysis to implementation. Nowadays an integral part of the organization.
Role in the project: Project Manager
Operational area, geographical:
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
At the time, the client was a globally active company with a worldwide production network.
- Purchasing volume > USD 800 million, mostly in Brazil (both demand and suppliers)
- The foreign plants have partly purchased from the mother in Brazil
- Worldwide sources of supply were largely unknown or not used
- 3 “Team Leaders Global Procurement” (Brazil, India, China) with corresponding teams
- 11 Development engineers at 6 locations
- 7 Employees in quality assurance at 6 locations
- 4 Logistics employees at 8 locations
- 11 Strategic buyers at 3 locations
- 4 Employees Supplier Development
- 14 Operational purchases at 12 locations
- 2 Project wizards
- Weekly team meeting: comparison of target and actual status
- Monthly reporting to business unit managers
- Half-yearly reporting to the management / board of directors
- Board of Directors
- Head of the Business Units
- Purchasing of the various plants
- Finance / Controlling / Legal Department
Global Procurement became an accepted part of the organization. The cost reductions achieved are sustainable and ranged between 3.4% and 6.2% in subsequent years.