September 15

Synergies through restructuring of purchasing

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  • Restructuring Purchasing to a cross-divisional Organization

One of the tasks was the integration of various sourcing teams into an efficient cross-divisional purchasing organisation, which is based on strict Total Costs of Ownership (TCO) and customer requirements. In addition to the formation of so-called commodity teams (plastics, metals, electronics, etc.), corresponding material group and supplier strategies were developed and implemented.

  • Material costs reduced by 100 million Euro in 4 years

In order to meet the ambitious group targets, the interim manager developed a comprehensive material cost reduction programme. Over the course of 4 years, he was able to reduce material costs by a good 100 million euros. He achieved this goal by implementing second/multiple source strategies in low cost countries (LCC) and best cost countries (BCC), ratio measures and complexity reduction through consistent reduction of component variants. Furthermore, he pursued a strict TCO approach. Indirect purchasing through advanced tactics purchasing such as online auctions made another major contribution to sustainable cost reduction.


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Associate Partner at F&P Executive Solutions AG

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