Make project purchasing more efficient

Goal: Raising savings potentials in project purchasing Project

Project

Duration: 4,5 months

Role in the project: Project Sponsor

Savings: Approx. 340,000 EUR (17%) in the first project under the new process

Operational area, geographical:

  • Switzerland
  • Global

Company

Type: Mechanical / Plant Engineering
Turnover: 4 Bn. EUR
Number of employees: 16,000

Description

  • The project purchasing department in Beingries consisted of 2 employees who handle a purchasing volume of approx. 30 million EUR and 30 projects / year
  • The project purchasing department always works under extreme time and cost pressure and was only confronted with the requirements after the project definition had been completed
  • In case of vacation / sick leave the effort was not manageable

Measures

  • Early involvement of project purchasing already in the bidding phase
  • Definition of standard suppliers
  • Creation of a standard purchasing contract for the project business at Buhler
  • Cooperation between specialist department/sales and project purchasing in obtaining quotations from suppliers
  • Additional support from a student trainee and colleagues from other plants.

Team

  • Project Manager (Student)
  • Project buyer
  • Sales
  • Proposer
  • Production Process Manager
  • Legal Department

Reporting

  • Weekly follow-ups with the team

Interfaces

  • Sales
  • Order processing
  • Sales Quotation Team

Success

  • Relatively short project time to success (4.5 months)
  • Since then, project purchasing has been regularly invited to the internal sales meetings
  • The inquiry process takes place together with the Sales Quotation Manager for the relevant project
  • For the first project, which was managed according to the new process, material costs in the amount of EUR 320,000 (17%) were saved.

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