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Purchasing and Procurement

The ratio of material cost to production cost is higher than 50% in many industrial companies – and it is rising. In spite of this great importance of this cost position, too little attention is often paid to purchasing, procurement and its interaction with product development, logistics, manufacturing and the planning and management of the supply chain. But it’s the interdisciplinary cooperation that is prerequisite for reducing total procurement cost and for unlocking potential in purchasing and procurement.

 

admoVa Consulting has developed a consulting and implementation method that simultaneously reduces procurement cost sustainably and defines the structures and processes in purchasing and procurement. We combine the associates’ experience with know-how from our consultants in order to reach the targets and to have a lasting effect.

 

Baseline for the opening of purchasing potentials is an assessment of commodities purchased. This allows hard figures to select and to define areas of action. The goal for manufacturing material must be security of supply at controlled / reasonable cost: “have the right material with the right quality at the right time in right quantity at the right place at right cost”. Strategic questions – e.g. make or buy decisions and the appropriate sourcing strategy - need to be answered. In addition, processes of supplier integration and logistics as well as IT-integration must be designed.

 

Leaving manufacturing material aside, high potentials are hidden in non-production material and optimum procurement management. Based on a classification of materials and services purchased, strategies are defined and implemented for specification of material and services, supplier management, process organization, duties and responsibilities and contract management.

 

Our services in Purchasing and Procurement are:

    

Defining Strategies

  • Production and non-production material
  • Strategies for commodities
  • Sourcing strategies
  • make or buy decisions
  • norm strategies for rules in contract management, purchasing and procurement

 

Defining structures

  • Materials management
  • Supplier management
  • Supplier integration
  • Supply Chain Monitoring

 

Organisational structures

  • Processes
  • Management systems using key performance indicators
  • Total procurement cost / total cost of ownership
  • Target costing
  • Contract management

   

Designing processes

  • Business process optimisation
  • Handbooks for purchasing and procurement
  • Solutions and tools for plannning and scheduling
  • Warehouse management
  • Logistic systems
  • KANBAN
  • VMI (vendor managed invenotry)
  • e-procurement
  • Workflow management
  • Document management systems

    

Management of implementation

  • Project management
  • Interim management
  • Coaching
  • Training
  • Project monitoring and controlling
  • Monitoring of key performance indicators

     

    

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