Introduction of a Steering Committee for the implementation of purchasing projects and savings potentials
Goal: Involvement of the management in the corresponding purchasing projects in order to bring about understanding and support
Project
Duration: 2 years
Role in the project: Steering Committee / Koordinator / Mentor
Operational area, geographical:
- Austria
- Global
Company
Type: Mechanical / plant engineering
Turnover: 700 Mio. EUR
Number of employees: 4,200
Description
- The projects led by the purchasing department usually progressed only sluggishly, since most of them required the support of other departments, whose resources were usually already planned for the long term.
- There was a general understanding that projects were driven by development and that purchasing was the executive procurement body.
- The management demanded more participation from the purchasing department.
Measures
- Management buy-in to the Steering Committee process
- Definition of the fixed participants
- Coordination of appointments to ensure the presence of all participants
- Preparation of the appointment, presentation, protocol and decision templates
- Coordination of deadlines with project managers and superiors
- Support of the project managers in the elaboration and presentation of the strategies
- Mentor presenters, review their presentations and prepare for potential questions
Team
- Managing Director
- Purchasing Manager
- Development Manager
- Logistics Manager
- Assistant to the management
- Strategic buyers
- Development engineers
Reporting
- Regular preparatory meetings with stakeholders
- Regular meetings with project managers before and after the Steering Committees
- Mentoring and coaching of project managers on a regular basis
Interfaces
- Management
- Purchasing
- Development
- Logistics
- Accounting & Controlling
Success
Through the regular Steering Committees, problems were specifically addressed and solved in very short periods of time, so that the contribution that Purchasing was able to make through successful projects increased extremely (Savings/year from 9.8% to 15.4%).
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