Structure of Material Group Management Indirect Material
Duration: 5 weeks
Savings: 5 Initial estimate of potential of CHF 23 million
Operational area, geographical:
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
- Regular coordination with CPO
- Controlling & Finances
- Facility Management
Successful introduction and availability of material group management for the presentation and implementation of savings potentials in indirect purchasing