Structure of Material Group Management Indirect Material

Goal: To create cost transparency in order to subsequently define the strategy for reducing expenditure


Duration: 5 weeks

Savings: Initial estimate of potential in the amount of CHF 23 million.

Operational area, geographical:

  • Switzerland
  • Global


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


At the main site alone, uncoordinated expenditures of over CHF 500 million were made annually.

There was little transparency as to which providers paid what amounts for which services.


  • Gain an understanding of the expenditures made within the previous year.
  • Cluster analysis of the paid invoices and allocation of these to corresponding commodity groups
  • First Big-Picture of the actual situation
  • Discussions with the users to understand the requirements and reasons for purchasing in the past
  • First potential analysis of process improvements and savings opportunities per product group
  • Prioritization of the product groups and definition of the further procedure
  • Coordination with CPO and release


  • 1 Controlling employee
  • 1 Data Analyst
  • CPO


  • Regular coordination with CPO


  • Controlling & Finances
  • HR
  • Production
  • Logistics
  • Purchasing
  • Development
  • Marketing
  • Facility Management
  • Legal


Successful introduction and availability of material group management for the presentation and implementation of savings potentials in indirect purchasing


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