Structure of Material Group Management Indirect Material
Goal: To create cost transparency in order to subsequently define the strategy for reducing expenditure
Project
Duration: 5 weeks
Savings: Initial estimate of potential in the amount of CHF 23 million.
Operational area, geographical:
- Switzerland
- Global
Company
Type: Mechanical / Plant Engineering
Turnover: 4 Bn. EUR
Number of employees: 16,000
Description
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.
Measures
- 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
Team
- 1 Controlling employee
- 1 Data Analyst
- CPO
Reporting
- Regular coordination with CPO
Interfaces
- Controlling & Finances
- HR
- Production
- Logistics
- Purchasing
- Development
- Marketing
- Facility Management
- Legal
Success
Successful introduction and availability of material group management for the presentation and implementation of savings potentials in indirect purchasing
Share
