Optimization of production material

Baseline situation

  • No transparency in the material specifications
  • Annual negotiations with the suppliers are not conducted
  • The depth of value added at the suppliers is not known
  • Material cost portions of purchase price conditions are unclear

Method

  • Analysis of the supplier portfolio
  • Preparation of the market environment analysis
  • Recording of material specifications and the manufacturing process
  • Calculation of the cost of goods manufactured
  • Tender with dedicated cost-break down for material and production
  • Conducting negotiations based on the calculation results

Outcome

  • Selection of suitable strategic suppliers
  • Securing purchasing conditions through long-term contracts