Definition and structure of material group management
Goal: Material cost reduction of 20% through strategic processing of material requirements and corresponding supplier management.
Project
Duration: 8 months
Role in the project: Project Manager
Operational area, geographical:
- Brazil
- Global
Company
Type: Mechanical engineering
Turnover: 5 Bn. EUR
Number of employees: 25,000
Description
There was no material group structure, requirements were placed with suppliers without long-term planning.
Purchasing volume > USD820 million
>30 plants worldwide
Measures
- Project plan creation and approval
- Team composition from long-standing experienced employees as well as young students
- Data collection Purchasing volume (per plant / supplier / material group / material / origin / etc.) Contract conditions, etc.
- Data and potential analysis
- Potential matrix product group / savings potentials
- Action plan per product group
Team
- 2 Data analysts
- 3 Senior Buyers
- 2 Junior Buyers
Reporting
- Weekly team meeting: comparison of target and actual status
- Monthly meeting with business unit purchasing manager
- Bimonthly reporting to business unit managers
- Final reporting to the management / board of directors
Interfaces
- Board of Directors
- Head of the Business Units
- Purchasing of the various plants
- IT
- Engineering
- Quality
Success
Approval for the introduction of a “Global Procurement” organization with the focus on strategic group-wide purchasing.
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