Updating the material group structure in purchasing

Goal: Current commodity groups that could be assigned accordingly to a strategic buyer in order to work out and implement the strategy for them.

Project

Duration: 5 months
Role in the project: Sponsor / Steering Committee

Operational area, geographical:

  • Austria
  • Global

Company

Type: Mechanical / plant engineering
Turnover: 700 Mio. EUR
Number of employees: 4,200

Description

The company had an outdated structure at the time that was not applicable. The consideration of updating to eClass or WBS was discarded.

Measures

  • Definition of a new product group key
  • Assignment of all materials to the new material groups
  • Master data maintenance in the ERP system
  • Display of a material group tree with corresponding key figures
  • Identification of savings potentials per product group

Team

  • Working student (Master thesis)
  • 4 Strategic buyers
  • 2 Standardization engineers

Reporting

  • Weekly to Management

Interfaces

  • Purchasing
  • Development
  • IT

Success

Presentation of a material group structure adapted to the company with which the strategic buyers can manage the material groups assigned to them, work out strategies and bring about cost reductions.

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