Strategy definition – Indirect Procurement – „Logistics“ material group
Duration: 7 weeks from presentation of the actual situation to project presentation
Role in the project: Project Manager
Einsparung: Identified potential of CHF 1.6 million
Operational area, geographical:
Type: Mechanical / Plant Engineering
Turnover: 4 Bn. EUR
Number of employees: 16,000
- Logistics expenditure over CHF 18 million with more than 60 service providers
- No clear award process, no transparency in the process
- Presentation of the actual situation
- Decision to use an existing product on the market for cost transparency
- Selection of the service provider
- Definition of the parameters and key figures of an SCM cockpit
- Joint potential analysis
- Project presentation to CPO, COO and CEO
Project was defined as “strategic” which meant that only a few employees (and not the specialist departments) were involved.
- Project Manager
- External advisors
- Regular reporting to CPO
A potential of over CHF 1.6 million (approx. 9% of the purchasing volume) for cost reduction was found. Through the proposed cockpit, processes and costs could be presented transparently.
Project was presented to COO and CEO in early 2020.