PROCUREMENT AND SOURCING

Category Management for Maintenance:

• Increasing the supply transparency by redefining the categories and subcategories for direct and indirect material
• Derivation of savings initiatives for each category, including estimation of the savings potential and a cross-functional realization plan
• Initialization of the degree of implementation methodology, including a tool for monitoring the ramp-up of cost reduction compared to planned savings

Right Shoring – Global vs. Regional Sourcing::

• Development of a cost structure analysis tool for comparing product costs in China to those in Central and Eastern Europe, under consideration of the total cost of ownership
• Benchmarking of costs, logistics and quality in the lead-up to a global sourcing strategy

Global Sourcing and Set-up of an IPO (International Purchasing Office) for Direct Material:

• Cross-functional identification of categories / subcategories feasible for global sourcing
• Supplier identification, evaluation and recommendation in China for selected pilot
• Product Implementation of the global sourcing strategy with a mid-term transfer concept to set-up a sourcing hub in Asia, including a business case and list of measures for realization of the strategy
• Establishment of an IPO in China, including operational and organizational organization, as well as legal aspects; recruiting, training and coaching of the new SCM team in China

Global Sourcing and Set-up of an IPO (International Purchasing Office) for Indirect Material:

• Country profiles: Macro-economic overview of the Asian countries and projection of each country’s strengths as a potential sourcing market onto 50 direct and 60 indirect sub-material groups
• Roadmap for an APAC procurement office: the new organization following the the purchasing processes, including interface definition such as reporting lines and the selection of the suitable site
• Return-on-investment scenarios: Set-up costs vs. savings under consideration of the total cost of ownership

Value Engineering und Cost Modeling:

• Validation of alternative packaging design concepts in light of manufacturing costs through cost structure analyse
• Recommendations for technical optimizations in terms of design-to-cost as a trade-off between industrial design, customer value and costs as decision memo for the executive board

Cost Engeneering:

• Should-cost calculations for hardware designs based on cost structure analyses, including derivation of alternative supplier and manufacturing concepts
• Development of a tool for identifying cost drivers along the design and development processes
• Optimization of the cost vs customer value ratio

Category Management, Supplier Reduction and Negotiation:

• Establishment of centralized procurement and set-up of category management; reduction of the number of active suppliers and increase of the purchasing power
• Savings realized through pooling of demand to enable volume xxx as well as improvement of payment terms and conditions
• Selection of preferred suppliers as strategic partners in order to generate win-win situations through joint cost reduction initiatives
• Realized savings through pooling of demand and frame contracts as well as improvement of terms and conditions of supply

Global Sourcing and Supplier Optimization:

• Benchmarking the existing supply chain footprint (China, Malaysia, Singapore, Australia)
• Pre-negotiated prices, payment terms and conditions with an alternative supplier in Taiwan that has greater vertical integration in order to reduce sourcing complexity
• Calculation of ramp-up costs to change the supplier
• Proof of concept how tzo realize 25% of savings, while cutting delivery times in half and improving cash flow at the same time