Product group strategy engines
Goal: Supplier management & cost reduction of the product group engines by 10%
Project
Duration: 1.5 years
Role in the project: Project Manager
Operational area, geographical:
- Austria
- Global
Company
Type: Mechanical / plant engineering
Turnover: 700 Mio. EUR
Number of employees: 4,200
Description
Purchasing volume EUR 2.8 million
- 7 Suppliers (1 main supplier)
- Introduction of new energy efficiency standards was imminent
Measures
- Buy-in of the development / logistics and production departments at the 2 main locations in Austria
- Definition of the team members of the different departments / plants
- Project plan preparation and adherence
- Preparation of the specifications for the suppliers
- Solicitation and comparison of offers on a main group basis
- Technical and commercial comparison of the offers
- Application test in the development department
- Supplier negotiation of the 3 best offers
- Framework contract negotiation with the 2 best suppliers
- Contract signing
- Presentation of the results to the management
- Conversion (run-in phase/run-out phase)
- Accompaniment of the supplier introduction
Team
- 1 Subproject manager technology
- 6 Development engineers at 2 locations
- 2 Logistics employees at 2 locations
- 1 Strategic buyer
Reporting
- Weekly team meeting: comparison of target and actual status
- Monthly reporting Head of department
- Presentation of the results to the management
Interfaces
- Purchasing
- Technology (development)
- Disposition
- Manufacturing / Production
- Accounting & Controlling
- Suppliers
Success
- Expansion of the company’s market leadership through future-proof technology and partners
- Appreciation of purchasing as a “partner at eye level” by development, suppliers and management
- Material cost savings of 330 KEUR (12%) including technology improvement
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