Definition and structure of the purchasing organization Global Procurement

Goal: Establishment of a global purchasing team in order to achieve the best possible purchasing conditions on a TCO basis and to reduce material costs by 20%


Duration: 2 years from analysis to implementation. Nowadays an integral part of the organization.

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


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
  • IT
  • Engineering
  • Quality
  • 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.


Scroll to Top