Product group strategy engines

Goal: Supplier management & cost reduction of the product group engines by 10%


Duration: 1.5 years

Role in the project: Project Manager

Operational area, geographical:

  • Austria
  • Global


Type: Mechanical / plant engineering
Turnover: 700 Mio. EUR
Number of employees: 4,200


Purchasing volume EUR 2.8 million

  • 7 Suppliers (1 main supplier)
  • Introduction of new energy efficiency standards was imminent


  • Buy-in of the development / logistics and production departments at the 2 main locations in Austria
  • Definition of the team members of the different departments / plants
  • Project plan preparation and adherence
  • Preparation of the specifications for the suppliers
  • Solicitation and comparison of offers on a main group basis
  • Technical and commercial comparison of the offers
  • Application test in the development department
  • Supplier negotiation of the 3 best offers
  • Framework contract negotiation with the 2 best suppliers
  • Contract signing
  • Presentation of the results to the management
  • Conversion (run-in phase/run-out phase)
  • Accompaniment of the supplier introduction


  • 1 Subproject manager technology
  • 6 Development engineers at 2 locations
  • 2 Logistics employees at 2 locations
  • 1 Strategic buyer


  • Weekly team meeting: comparison of target and actual status
  • Monthly reporting Head of department
  • Presentation of the results to the management


  • Purchasing
  • Technology (development)
  • Disposition
  • Manufacturing / Production
  • Accounting & Controlling
  • Suppliers


  • Expansion of the company’s market leadership through future-proof technology and partners
  • Appreciation of purchasing as a “partner at eye level” by development, suppliers and management
  • Material cost savings of 330 KEUR (12%) including technology improvement


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