Optimization of the purchasing structure
Project at a glance
Client: Manufacturer of precision plastic parts with three locations in Germany
- Standardization / bundling of requirements
- Lead buyer concept
- Introduction of eProcurement for C-articles
- Supplier evaluation
- Negotiation of supplier contracts
- Employee training for procurement
- Purchasing organization is primarily operationally oriented
- Little transparency between different suppliers
- A high number of small suppliers and correspondingly high process costs as well as administrative expenses
- Knowledge of an orderly inquiry and tender process is not evident among purchasing department employees
Material cost and process savings of over 25%
Based on a detailed material group analysis and numerous interviews with the relevant contact persons, the DBC team first created transparency about the entire purchasing volume. By bundling the requirements and the resulting synergy effects, a better starting position was established for negotiations with suppliers. A Procurement Strategy Map for existing suppliers was created, in which suppliers were classified and the corresponding strategies for each supplier category were developed.
The eProcurement tool was used on a customer-specific basis for C items. By focusing on a few suppliers with additional better terms on the larger volume, the DBC team realized the savings in both purchase price and process costs.
The lead buyer concept was introduced. This cross-site focus has enabled optimized procurement decisions to be made. DBC trained buyers took over strategic procurement activities such as procurement market analysis, supplier evaluation and benchmark analysis.
Contracts were renegotiated successfully based on the improved purchasing structure.
Result of the project:
Savings in costs and purchasing processes of over 25%.