Case study: Proactive Supplier Management


Automotive supplier / tier 1


Reorganization of procurement department and significant increase in the purchasing performance


Negative EBIT, high proportion of operative daily business, dominated by ad hoc orders, desolate supplier relationship, bad or insufficient material group strategy, lack of methodological expertise, lack of cross-functional integration, retrospective / ad hoc risk management, non-transparent processes, high defect parts delivery ratio, high proportion of dissatisfied suppliers, no complaints process and no cost control, incomplete vendor data, no active management indicators, lack of proactive measures to control ris


  • Restructuring of the purchasing organization, process optimization and networking of procurement activities with business units, implementation of sustainable material group strategy
  • Developing a proactive supplier management (supplier development, evaluation, performance and complaint management) with key indicators based proactive risk management
  • Increase in annual savings after ramp-up approx. 50%


16 months


  • Significant increase in methodological skills through training and on the job coaching of customer teams
  • Reorganization of the purchasing department, reallocation of strategic and operational tasks
  • Professionalization of supplier management and development of a sustainable material group strategy
  • Introduction of a KPI-based proactive risk management, consolidation of supplier pool
  • Establishment of a claim management, improving the delivery performance, significant reduction of defective goods delivery ratio
  • Increase in annual savings by 80%, achieving a black zero, ensuring the Turn Around