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