Reorganization of purchasing in the packaging industry

Development of the central purchasing department as a best-in-class organization in the packaging industry

Project

Duration: 9 months

Role in the project: CPO/Head of Procurement

Area of application, geographical: Vienna, Europe

Company

Sector: Packaging industry

Turnover: EUR 650 million

Number of employees: 2000 worldwide

Description

  • Reorganization of purchasing (from decentralized to centralized)
  • Harmonization of processes
  • Development of strategic purchasing
  • Identification and implementation of potential savings

Measures

  • Definition and implementation of a global procurement strategy based on the global Group strategy
  • Centralization of operational purchasing
  • Development of strategic purchasing
  • Drive synergies between plants and categories, improve bundling activities
  • Search for alternative suppliers, implementation of tenders
  • Constant monitoring of global markets with regard to potential suppliers, utilization of a global supplier base
  • Introduction of reporting tools and key figures

Team

  • 34 purchasers at 20 locations throughout Europe
  • 2 Regional purchasing managers
  • 6 Strategic buyers
  • 1 data analyst

Reporting

    • Monthly update in the Procurement Steering Committee to the CEO
    • Weekly feedback meeting with the CEO
    • Monthly Advisory Board Meeting

Success

  • Re-organization within 3 months
  • Transparency in purchasing through KPI-driven action
  • Savings potential of over 10 million euros identified / 4.6 million implemented in 4 months
  • Preparing the organization for the new ERP system
  • Selection, introduction of the new Head of Procurement

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