Establishment of the Team – Local Procurement / SCM

Goal: Establishment of a local procurement organization (16 employees) for the newly opened plant in India

Project

Duration: 6 months + 6 months improvement management
Role in the project: Project Manager

Operational area, geographical:

  • India
  • Brazil

Company

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

Description

As part of the globalization strategy, a plant was opened in India. At the time of the go-live, purchasing had not yet been established and was managed with resources from the head office.

Most of the material was imported from Brazil and the projects were assembled on site.

Measures

  • Definition of the required organization
  • Building understanding of Indian culture
  • Creation of the appropriate role profiles & recruitment
  • Selection / training / introduction of new employees
  • Translation and adaptation of process manuals
  • Introduction of processes and tools
  • Supplier selection / auditing / implementation / management
  • Integration of the team into the India organization
  • Establishment of decision-making bodies and escalation levels
  • Establishment of a control and reporting instrument for the management of the team
  • Establishment of an action plan for the personnel development of the team
  • Teambuilding events to strengthen cohesion and intercultural understanding
  • Adjustment of internal logistics processes due to changes in the plant

Team

  • Human Resources Manager
  • IT employees
  • Buyers from the head office

Reporting

  • Regular coordination with plant management and HR
  • Monthly reporting to business unit managers

Interfaces

  • Purchasing in the head office
  • Human Resources
  • Plant management
  • Business Unit Manager
  • Engineering
  • Quality
  • Finances / Controlling

Success

Within a short period of time, a diversified team was successfully established that understood the local market and was able to source the plant’s needs locally. This prevented further costs.

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