ABTF competence area: Procurement
Current situation in the industry
Main challenge of all suppliers in the automotive industry is the high complexity of the automotive products. 100,000 individual items from a variety of materials, assemblies and subassemblies must be procured. Why are procurement skills in the automotive industry so important?
- Missing parts and quality problems cause high costs
- High order residues bind capacity
- Long delivery times annoy the customer
- Material prices are permanently increasing
- Cancellation of orders are going up
- This all results in loss of market share.
For these reasons, a professional procurement management is essential.
Typical Projects (Examples)
- Cost reduction in a pilot project
The costs of a module were 20% too high. In the project team with designers, production managers and logistics, a new standard has been developed. With the new modular system larger procurement quantities and thus lower prices could be negotiated. The total costs could be reduced by 15%.
- “Make or buy” decisions in order backlog The production had a backlog of 6 months. In order to meet the delivery date a "make or buy" decision urgently needs to be made. The entire parts production had to be outsourced in short term. With professional support a new supplier was searched, developed and audited. By this the delivery schedule was kept in time.
- Interim management
A purchasing manager had to be replaced shortly. The customer demanded a fast & effective introduction time into a new computer system, rapid analysis of his material groups and proposals for his cost reduction programs. Only experienced professionals who have a "hands on" mentality can bridge such a vacancy.
OurPerformance- Your Benefit
- Taking charge of functional support
- Acting as CPO or strategic buyer
- Restructuring of your procurement department and complete realignment of your procurement organization
- Taking over the position as project manager for difficult projects
To "Turn dynamics to your success" with professional supplier management like in this case results in decreasing costs in order to remain competitive.