Purchasing Optimization & Supply Chain Management (SCM)
Complex value chains and increasing global supply chains require efficient purchasing and supply chain management! After all, in the future, only those companies with a superior value chain will gain a competitive edge. A more holistic approach and strategies that go beyond short-term savings, as well as the expansion of competence in purchasing and a different understanding of roles, bring profound changes to all areas.
Purchasing and supply chain management are the link between companies and their suppliers. Purchasing and supply chain management will be developed in several stages by the value manager in the future.
Our consulting services
We view purchasing and supply chain management in an integrated manner:
Best Practice in Value & Cost Management
Purchasing strategies & optimization
Optimization of Total Cost of Ownership (TCO)
Supply Chain Optimization
Bottom-up cost analysis for part prices, tooling, development and software costs
Cross functional thinking
Cross-interface potential can be identified only by integrating areas closely, including development, purchasing, operations and sales, which can result in optimizing costs for the entire company. POLARIXCOSTING represents an essential step in making cost transparency visible in all phases of the product development process.
Maximize value creation
Efficient Supply Chain Management (SCM) has a lasting influence on the value chain of companies in the manufacturing industry. In the competition of the future, an optimized value chain will be decisive. The foundation for this is laid in the high-performance design and holistic control of the supply chain. Closely linked to the performance of the value chain is dedicated value analysis in terms of manufacturing costs, cost analysis and cost management.
Examples of Purchasing and Supply Chain Management projects
Establishment and development of value and cost management for a German premium OEM.
The customer focused primarily on innovation and a model offensive. Cost management was only triggered by purchasing, and it was focused on supplier competition. Management sees the need for cost reduction in all phases of product development.
POLARIXPARTNER had the task of setting up value and cost management within a year. The project team comprised about 40 people - five to eight experts were involved.
- Development of a target vision for future cost management, which covers internal / external interfaces, organization, processes, tools & systems, and knowledge management
- Setup & improvement of standards & processes for the realization of the target vision
- 25 pilot projects for concept testing with customers
- Active coaching of customers’ employees as part of the pilot projects & adapted training sessions to improve cost-management basics, technical knowledge and implementation skills
Cost analysis and implementation of cost savings of a slat transmission for a passenger aircraft of a Tier 1 aviation supplier.
The supplier had a strong production increase. However, some manufacturing steps are not compatible with mass production. The actual costs are higher than the target sales price. In addition, the customer increased the pressure to reduce costs because of the increase in the purchase quantity.
POLARIXPARTNER was commissioned with a 3-month analysis of the current situation. After 15 months, cost savings should be implemented. More than 50 employees from cross-functional teams including development, purchasing, cost engineering, controlling and production were involved.
- Cost analysis of all parts and assembly
- Workshops to identify cost saving opportunities (internally and with suppliers)
- Evaluation of ideas in the team
- Manufacturing analysis for in-house and supplier production in order to identify further potential
- Production tests with new tools and processes to save on manufacturing costs
- Negotiations with suppliers in order to unleash potential
- 50 % Cost saving potential
- 30 % of the potential already implemented after 6 months
- Further measures to exploit the full potential over 9 months
Cost transparency in the overall system and identification of savings potential.
Savings potentials need to be identified and cost transparency for the just-in-sequence module center needs to be created during the early concept phase of developing the next generation of vehicles for the European market. The difficult market environment resulted in a limited supply of information (provider market).
POLARIXPARTNER was responsible for creating a transparent just-in-sequence cost model with a successful supplier negotiation.
- A cost model that transparently depicts the entire value chain for the creation of a module produced in a line sequence.
- Sub-areas of the JIS production (goods receipt, storage, production and goods dispatch) including incoming and outgoing logistics were recorded and evaluated in detail
- Detailed evaluation, creation of a transparent cost structure and successful negotiations
- Cost reduction by 15-20%
POLARIXPARTNER Expert Insights
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