Success in international cost reduction initiatives requires experience
Above all from an economic perspective, globalization offers several advantages, also and especially for procurement. In addition to the possibility of global sourcing, it also offers the opportunity to profit from the wealth of knowledge of an international organization, to leverage increased consolidation potential and to influence the supply chain.
For a long time now, the international focus in procurement has no longer been just on sourcing required materials and purchased parts in the best possible quality and at ideal price levels for local production on the world market and providing them logistically optimized.
The main goal of most of our customers today is to develop, implement and permanently operate a worldwide system of suppliers and production sites that is economically optimal for the entire company – often with group-like structures.
It is necessary to evaluate and decide from where which production sites are to be served, how the cooperation of the plants in the framework of multi-stage value chains is to function and from where and finally how customers around the globe are to be supplied.
In addition to the necessary toolbox of methods, tools and experience, the availability and transparency of international data, information and market knowledge plays a decisive role in the integrated planning and control of these global networks.
At the same time, however, we often notice an increased lack of transparency between the individual country units in internationally positioned (procurement) organizations due to historically grown or decentral implemented isolated solutions. In addition to the language barrier, the decentralized structure of the individual units and inadequate controlling regularly lead to untapped potential.
The cost-cutting programs implemented for our customers against this background are characterized by close cooperation with the international buyers and interface functions of the customer.
Depending on the initial situation identified, we make use of many possible procurement levers and strategies from the areas of supplier, demand and/or process management.
In addition to an extensive wealth of experience from various industries and product groups, we naturally have the necessary project management know-how, including suitable communication strategies (internal and external) as well as the ability to moderate and coordinate stakeholders.