Development of a sustainable strategy: “Global Procurement Organization Footprint”
Goal: Establishment of a "Best in Class" purchasing organization by 2025 and definition of the catalog of measures for implementation
Project
Duration: As-is analysis to master plan development 3 months. Implementation pending.
Role in the project: Project Manager
Savings: Potential (2025) to reduce structural costs by 6.7% despite salary increases and to increase current material cost reductions by 48% to CHF 45 million.
Operational area, geographical:
- Switzerland
- Global
Company
Type: Mechanical / Plant Engineering
Turnover: 4 Bn. EUR
Number of employees: 16,000
Description
- Logistics expenditure over CHF 18 million with more than 60 service providers
- No clear award process, no transparency in the process
Measures
- As-is analysis of the current organization (number of employees worldwide, task definition, etc.), their costs and results
- Definition of the required role profiles due to the complexity of the business
- Needs analysis of the organisation broken down to locations, taking into account the planned development of the company
- Transformation of an operational purchasing organization into a strategically operating organization
- Presentation of the “ideal organization” at the individual locations including key performance indicator targets
- Derivation of the action planning for the individual sites from the master planning
- Reporting templates & tools elaborated
- Presentation of the project and action plan to CPO and COO
Team
- Sparring with a few insiders from purchasing, HR, finance and controlling
Reporting
- Regular updates and exchange of ideas with CPO
Interfaces
- CPO
- COO
- HR Business Partner
- Purchasing manager worldwide
Success
The project plan, including a catalogue of measures, was successfully taken up. The rollout will start in 2020.
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