Optimization of raw materials

Baseline situation

  • Single sourcing (single supplier strategy) for main raw materials causes enormous risk potential
  • A non-delivery capability of the main supplier caused several productions stops in the past
  • Purchase conditions are dictated by the supplier monthly

Method

  • Recording and evaluation of material specifications
  • Checking the options of re-specification
  • Analysis of the market indices for contract drafting
  • Ensuring delivery quantities through a coordinated forecast model
  • Negotiation of long-term contracts with price indexation

Outcome

  • Qualification of additional suppliers into the overall portfolio
  • Reduction in material prices compared with market price levels
  • Securing purchasing conditions through long-term contracts