Transformation in purchasing & SCM at an international automotive supplier including supplier management and ensuring material availability

Goal: Identification and verification of optimizations to improve results in purchasing | Improvement of material availability | Development of the purchasing organization

Project

Duration: 6 months

Role in the project: Head of Global Procurement / Chief Procurement Officer

Operational area, geographical:

  • Germany
  • Hungary
  • Moldova
  • China

Company

Type: Industry / Power Electronics
Turnover: 45 Mio. EUR
Number of employees: 750 worldwide

Description

The decentralized purchasing organization was transformed into a global matrix organization, which is intended to improve processes and key figures as well as transparency. Global synergies and cost reduction potentials will be leveraged through the newly created Strategic Purchasing.

Measures

  • Establishment and expansion of the purchasing organization
  • Optimization and digitalization of purchasing processes
  • Supplier / material group management
  • Global Sourcing
  • Programs Cost Reduction + OTD
  • Material group and master data management programs
  • Warehouse optimization
  • Coaching of the executives

Team

Global team consisting of:

  • Managing Director
  • 3 Purchasing and Logistics Department Managers in the plants
  • 9 Operational buyers
  • 9 Operational buyers
  • 4 Production planner
  • 35 Warehouse employees

Reporting

  • Regular feedback meetings with Managing Director
  • Weekly purchasing meetings
  • Informal discussions with employees

Interfaces

  • Production
  • Sales
  • Quality assurance
  • Finance & Controlling
  • Development / Engineering
  • Human Resources
  • IT
  • Suppliers

Success

  • Development of a powerful procurement organization
  • Securing the supply of materials despite shortages on the world market
  • Clear process definition and partial digitalisation of these
  • Definition of the future IT infrastructure of the purchasing department
  • Increase in material availability through improved supplier management

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