Strategic purchasing in the pan-European spare parts business

Goal: Establishment of a Europe-wide uniform purchasing strategy for the spare parts business (22 locations) - Supply Chain Management - Cost reduction by 15% in 3 years - Increase in availability - Development of further potential for the service business

Project

Duration: 22 months
Role in the project: Team Leader / Commodity Manager

Operational area, geographical:

  • Germany
  • UK
  • Europe

Company

Type: Rail vehicle manufacturer
Turnover: 4.5 Bn. EUR
Number of employees: 22,000

Description

Commodity Manager Services responsible for:

  • EUR 50 million pPurchasing volume
  • Product groups Interiors, Seats and Glass (front and side windows)
  • Management of the product group network (15 MA Europe-wide)

Measures

  • Establishment / consolidation of a network for the product group
  • Definition and implementation of the product group strategy
  • Definition of levers in the spare parts business for early identification of customer needs
  • Supplier selection / auditing / management
  • Regular reporting in the team and to the management

Team

  • 15 Indirect employees Purchasing at various locations in Europe
  • 2 Commodity Engineers
  • 2 Supplier Quality Engineers

Reporting

  • Monthly status update to business unit management

Interfaces

  • Purchasing at the locations
  • Engineering
  • Disposition
  • Controlling
  • Suppliers
  • Quality assurance

Success

  • Establishment of a strong commodity network
  • Material cost reduction over 32%
  • Development of a further business area, which represented a potential annual turnover of EUR 15 million

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