Category: Uncategorized

Agilität im Einkauf ist nicht tot!

Agilität im Einkauf

⚡Agilität im Einkauf ist wichtiger als je zuvor! Alle Welt redet von Agilität, mal begeistert, mal angewidert. Agilität polarisiert und wird gerne als Hype abgetan. Grundsätzlich ist jedoch noch immer zu sehen, dass allzu häufig Ratlosigkeit herrscht, wenn es um konkrete Maßnahmen und praktische Ansätze geht. Das war schon das Ergebnis unserer weltweiten Studie in 2020. 📌Agilität im Einkauf steht u.a. für mehr Anpassungsfähigkeit, Effizienz und als Erfolgsfaktor von Transformation und Digitalisierung. Agilität ist eine wichtige Voraussetzung wenn es darum geht Organisationen und Lieferketten resilienter zu machen und Reaktionszeiten in Krisen (z.B. Lieferabrisse) zu verbessern. 📌Agilität ist mehr als Scrum und Sprints und Boards, denn mit dem gesunden Augenmass und praktischen Ansätzen wird der Einkauf zum Vorreiter von Agilität im Unternehmen, also auch in der zeitkritischen Zusammenarbeit während der Produktentwicklung 📌 Eine agile Einkaufsorganisation mit agilen Prozesen und Menschen ist insbesondere im volatilen, unsicheren und unplanbaren Umfeld die Vorrausetzung für Effektivität und mehr Wertbeitrag. Und in genau diesen unsicheren Zeiten leben wir und sie sind bereits das „neue Normal“. 📌Ein erfolgreiches Risiko- und Krisenmanagement fusst auf agilen Prinzipien, ein wertstifendes Category Management ebenso. Category Teams leisten ebenso ihren Beitrag, wie Krisenmanagement Teams oder Task Forces. Beste Voraussetzungen, um mit agilen (Führungs-)prinzipien und agilen Methoden zu arbeiten. ⏩Bereits 2019 hatten wir im Handelsblatt einen Dreiteiler zu dem Thema mit praktischen Handlungsempfehlungen ⏩Im Rahmen einer Befragung mit dem BMÖ, der FH Südwestfalen und Dr. Anja Wilde haben wir schon 2020 untersucht, welche agilen Methoden im Einkauf genutzt werden, welchen Stand die Agilität im Einkauf erreicht hat, was der Einkauf hinsichtlich seiner Agilität für die Zukunft plant und wie sich Agilität auf die Leistungsfähigkeit des Einkaufs sowie des beschaffenden Unternehmens auswirkt. Über 120 Einkaufsleiter & Experten aus Europa, USA & Südamerika haben sich damals beteiligt. Das Ergebnis dürfte nicht überraschen. Aber was heisst das wenige Jahre später? Sind wir jetzt weiter? Den Downloadlink zur Umfrage dem Handelsblatt Artikel und weitere praktische Informationen wie Sie den Einkauf agiler machen können, finden Sie hier: https://targetp.de/agilitaet-im-einkauf/

Digitalization in a Ferrari and Procurement

🚗 Digitalization in a Ferrari and Procurement Apart from the speed, there are certainly similarities, aren’t there? YES, Procurement must learn a lesson from a recent Ferrari announcement (July): ⚠️ Ferrari is putting a hard stop when it comes to developing its infotainment software; Ferrari figured out it can’t keep up with Apple and Google and will not further develop its own navigation and infotainment system. Apple CarPlay and Android Auto offer better UX and generally smartphone apps are anyway always up to date. What it means for Procurement: ⚡Building your digital solutions makes little or no sense: But why are there still Procurement Managers & IT Departments who believe they have to develop and code Digital Procurement solutions, despite there now being hundreds of systems for almost every challenge in Procurement? ⚡It is 2024: Why are there Procurement Managers who still firmly claim that many digital solutions, especially eProcurement platforms, are “not yet ready to handle their challenges”? A few thoughts after 22 years in the Digital Procurement space: 📌We can draw from dozens of proven and running solutions and quickly realize success with mature solutions that providers and customers continuously develop. Regular enhancements included. This applies to all industries, company sizes, and budgets. There is absolutely no reason to do nothing! 📌After bumpy years (the early 2000s) where the scope of functions took precedence over UI/UX and user experience, we now have user-friendly, intuitive interfaces that focus on people rather than the system and they learned and copied much from well-known consumer platforms (e.g. Amazon) 📌Digitalization comprehensively expands the Procurement toolbox (“value levers”) 📌Interfaces (API) are also manageable (time, costs, complexity) 📌Plug&Play in the context of Procurement hubs is the future of system landscapes in Procurement. Many solution providers complement each other perfectly and collaborate (e.g. Risk and Sustainability and Compliance Management) ⚠️If you are a Procurement Leader with no digital ambition and initiatives you might also jeopardize the digitalization efforts of the entire company. In running a large network of business partners, Procurement must be a promoter or inhibitor of a company-wide digitalization approach. Choose your role wisely! ⚠️By the way: Digital procurement is also sexy in terms of talent attraction and talent retention. Excel, pens, discouragement & hesitation rather less so! Digitalization in Procurement in less than 12 months? Talk to us! Source Graphic. P. Raasch, 9.7.2024

UK Pint Inflation – Deep Dive analysis unveils a scary development

Friday Inflation Madness – The British Pint Index unveils a scary development  Some of you may have followed my recent postings on inflation. Over the past few weeks, I have analyzed the development of inflation in Germany and the USA and presented current opportunities to reduce procurement costs. Today, let’s talk about the UK. I won’t go that deep into the analysis but let’s look at the famous Pint Index (the “British version” of the Big Mac Index..just kidding). The development is scary. Peter explained it well and this also impacts many other areas! Cheers and a happy weekend. Watch out for the weekly Saturday Supply Chain Madness posting on LinkedIn. Source: Thanks to James Meads (on LinkedIn) for the inspiration and Peter Donaghy (on X) for the graphic and idea

Micromanagement in Procurement kills value contribution

⚠️Micromanagement in Procurement kills Value Contribution Since LinkedIn is flooded with thousands of boss vs. leadership postings daily, I will take this opportunity to comment on the immense disadvantages of Micromanagement (MM) in Procurement. Why? Just another (sad) observation in the past few weeks ❗ A few several detrimental consequences: 📌Reduced Employee Morale & Motivation: it restricts the ability of Procurement teams to think creatively and propose innovative solutions 📌Decreased Efficiency: Managers who focus on every minor detail may spend excessive time on tasks that could be delegated, reducing overall productivity and efficiency. They tend to ignore major tasks such as Stakeholder & Performance Management, Digital Procurement, and Procurement Marketing 📌Increased Costs: Missed opportunities due to a focus on controlling every aspect as the Procurement Team may not have the freedom to negotiate or make quick decisions (e.g. supply disruptions). 📌Deterioration in Supplier Relationships: Suppliers perceive MM as a lack of trust in the Procurement team, leading to strained relationships. This results in less favorable terms, reduced collaboration 📌Slower Decision-Making: The constant need for approvals slows down the decision-making process, causing delays that frustrate suppliers and damage long-term partnerships. 📌Reduced Strategic Focus: MM prioritizes tactical details over strategic goals. This shift in focus can prevent Procurement from aligning with the broader organizational strategy, such as achieving long-term cost improvements or improving supplier diversity. With a focus on minor issues, there’s less focus on strategic sourcing initiatives, such as supplier & risk management, or sustainability initiatives. 📌Employee Turnover: MM can lead to higher turnover rates within the procurement team and increase difficulty in attracting talent: A reputation for micromanagement can make it difficult for the organization to attract top procurement talent, 📌Poor Decision-Making: When Procurement professionals are not empowered to make decisions, it can lead to decision paralysis, where no action is taken due to fear of making the wrong choice. 📌Loss of Negotiation Power: Micromanagement (your boss wants to lead important negotiations) weakens negotiation power by slowing decision-making, limiting flexibility, and undermining the confidence of Procurement professionals. It prevents them from adapting to dynamic situations, missing opportunities for favorable deals, and erodes supplier trust. It is the best way to permanently screw your teams and kill their bargaining power. Forever! In summary, the actual impact is often counterproductive, leading to inefficiencies, increased costs, lower value contribution, and a demotivated workforce. To be effective, it’s essential to balance oversight and autonomy, empowering professionals to leverage their expertise (and negotiation power).

Anticipating and Preventing Supply Risks to Avoid Supply Chain Disasters

Anticipating and Preventing Supply Risks to Avoid Supply Chain Disasters

Procurement Teams: It’s time to fight back and reduce costs

💵 Attention Procurement Teams: It’s time to fight back and reduce costs 👉The August Purchasing Managers Index (PMI) i.e. shows a promising trend for Procurement pros: “The average prices charged for goods and services increased globally in July at the joint-slowest rate since October 2020″. Cost-efficient Procurement ensures financial stability and enables investment in innovation and growth amid economic uncertainty. Thus, reducing costs is critical for enhancing an organization’s profitability and operational efficiency. In 2024, cost management has become a top priority for many Procurement teams as it is even more crucial due to rising inflation, global supply chain disruptions, weak economies, and increased competition. 🫰🏻After years of 10%+ increases, it is time to fight back, if you haven’t started yet. No take it or leave it anymore. It is time to act and end the era of no pushback. ✅What to do; 📌Renegotiate contracts to secure lower prices, adjust inventory, explore long-term agreements 📌Reassess supplier pricing strategies, pass savings to product pricing, and invest in innovation or value-added services. 📌Collaborate with suppliers to optimize cost structures, ensuring mutual benefits. 📌Monitor market trends closely to ensure timely responses, maintaining a competitive edge ✅Selected value levers: 📌Skills & Human Power: Invest in skills (Negotiation & Cost Management training) 📌Supplier Consolidation (but understand the supply risk that comes with it) 📌Demand Management (Involve stakeholders) 📌Establish a Supplier Negotiation program to achieve better terms 📌Cost Structure Analysis: Identify opportunities for cost reduction 📌Strategic Sourcing: Improve your strategic sourcing. Select suppliers that offer the best value rather than just the lowest price. 📌Category Management: Manage Categories as strategic business units, and efficiency 📌Risk & Compliance Management: Avoid unplanned costs from unstable supply chains, missing risk monitoring, and not adhering to regulatory Procurement must play a pivotal role in driving cost reductions across the organization. The combination of supplier consolidation, demand management, strategic sourcing, risk & compliance management, and continuous skill development creates a comprehensive approach to cost management.   targetP evolving procurement

Procurement Target Operating Model

👉 Procurement Target Operating Model – Key to success and value delivery We at targetP evolving procurement have been fortunate to develop plenty of Procurement organizations and Target Operating Models in many industries. But what is it about? A Procurement Target Operating Model (TOM) is a blueprint for how an organization intends to operate to achieve its strategic goals. It outlines the desired state of an organization’s processes, systems, people, and technology, bridging strategy and execution. It makes Procurement effective and efficient! 👉 Key Building Blocks: 📌Processes: Defines how tasks and activities are performed to deliver value, including workflows, procedures, and efficiency measures 📌Organization: Describes the structure, roles, and responsibilities within the company, ensuring alignment with strategic objectives. 📌Technology: Encompasses the IT infrastructure, software, and tools needed to support operations and enhance performance. 📌People & Culture: Focuses on skills, competencies, and behaviors required, along with the organizational culture that supports the model. 📌Data & Information: Ensures the availability, accuracy, and management of data needed for decision-making and operations. 📌Governance & Risk: Establishes control mechanisms, compliance standards, and risk management practices to ensure sustainability and resilience. Different Target Operating Models (TOMs) in Procurement are designed based on an organization’s goals, industry, and complexity. These models help streamline Procurement processes, align them with business strategies, and optimize efficiency and cost-effectiveness. 👉 Some common Procurement TOMs: ➡️Centralized Procurement Model ➡️Decentralized Procurement Model ➡️Center-Led Procurement Model ➡️Hybrid Procurement Model ➡️Outsourced Procurement Model ➡️Category Management Model ➡️Digital or Automated Procurement Model Each model has its strengths and weaknesses, and the choice of a TOM for Procurement depends on factors such as the organization’s size, industry, strategic goals, and the maturity of its procurement function. We at targetP develop, and establish the most effective TOM for you!

Chapter 11 Bankruptcy Cases have increased dramatically in 2024

👉Chapter 11 Bankruptcy Cases have increased dramatically in 2024. ⚠️Supply Chain Folks: Stay alerted as we see some critical tendencies around the globe. Earlier this week we took a look at the trend in Germany and today we put a spotlight on the US. Apart from geopolitical issues and supply chain disruptions caused by various reasons, we see alarming news regarding insolvencies/bankruptcies and Chapter 11 filings. The current trajectory of bankruptcy filings is on a steep climb. American Bankruptcy Institute 📌Bankruptcy filings including all chapters totaled 40,267, a 7% increase from the June 2023 total of 37,790. 📌Commercial chapter 11 filings increased 70 percent to 987 in June 2024 from the 582 filings recorded in June 2023. 📌This sharp rise can be attributed to the retail sector and prevailing high interest rates that constrict alternatives for businesses. The situation is further compounded by an uptick in related case filings, underscoring the severe financial challenges many companies are grappling with. ⚠️ The U.S. Department of Justice projects a substantial increase in bankruptcy filings. Its U.S. Trustee Program has estimated that bankruptcy filings will double over the next three years. This prediction is corroborated by the broader economic data, including escalating corporate bankruptcies, tightening bank loan standards, and the surge in delinquent and consumer debt balances. A case filed under Chapter 11 of the United States Bankruptcy Code is known as a reorganization bankruptcy. A Chapter 11 bankruptcy allows a company to stay in business and restructure its finances and operations. Let’s compare it to Germany🇩🇪 🇩🇪 The number of company bankruptcies is once again increasing at a double-digit rate. According to the Bavarian (the guys with Lederhosen, Sauerkraut, and Sausages) Statistical Office, the number of business insolvency proceedings rose by 11.9 percent in the first half of 2024 compared to 2023. 🇩🇪 The number of corporate insolvencies in Germany rose by almost 30 percent year-on-year in the first six months due to the weak economy. It’s time to monitor your INTERNATIONAL value chain partners closely. Use human intelligence and digital monitoring to identify troubled business partners early. @targetP evolving procurement will be happy to assist. We help you to build robust supply chains and effective supply chain risk programs.

Unternehmensinsolvenzen steigen in 2024

Unternehmensinsolvenzen steigen in 2024 Konjunkturflaute, steigende Sparquote, geopolitische Risiken und Kostensteigerungen sind eine toxische Mischung für die heimische Wirtschaft. Neben den Disruptionen der Lieferkette wird eine umfassende Insolvenzfrüherkennung und ein professionelles Insolvenzmanagement wieder wichtig(er). Nach Juni wieder ein Update. Seit einigen Jahren zeigen wir von targetP evolving procurement auf, wenn Medien, Kreditversicherer und Analysten sich verstärkt Insolvenzen widmen. Nach 16 Jahren Risikomanagement ein zuverlässiger Indikator. In den letzten Wochen haben diverse Medien, wie zu Jahresbeginn, wieder intensiv berichtet. Der breiten Öffentlichkeit dürften sicherlich die populären Fälle Depot, Esprit, Varta und FTI bekannt sein. Bayrischer Rundfunk 09.08.2024 – Pleitewelle oder Einzelfälle? 📌Die Zahl der Firmenpleiten nimmt erneut zweistellig zu. In Bayern waren es im vergangenen Jahr laut Stat. Landesamt 2.527 neue Insolvenzverfahren. 26,7 Prozent mehr als 2023 📌Der bundesweite Trend bei Creditreform zeigt für 2024 erneut eine ähnliche Entwicklung. Durchschnittlich rund 23.000 Unternehmensinsolvenzen in den letzten Jahren. Wir nähern uns! 📌Creditreform Halbjahresbilanz 2024: 11.000 Firmenpleiten in den ersten sechs Monaten, höchste Stand seit fast zehn Jahren. Aber alarmierend ist das allein noch nicht, aber es gibt eine bedenkliche Entwicklung. Es trifft mehr größere Firmen mit mehr als 200 Arbeitsplätzen 📌Gestiegenen Kosten & geringe Nachfrage bei Verbrauchern, die wieder mehr sparen. Private Sparquote zuletzt wie in Krisenzeiten bei 15%. 📌 ABER: Zu wenig Gründungen. So meldete etwa der Startup-Verband für Deutschland 2023 nur noch 2.500 Gründungen (minus 5% zu 2022). 📌 BEDENKLICH: Unterm Strich werden wesentlich mehr Firmen geschlossen als neue hinzukommen Welt: 24.6.24 📌Die Dynamik des Insolvenzgeschehens hat sich dabei nochmal deutlich verstärkt. 📌19 Milliarden Euro geschätzte Forderungsausfälle für Lieferanten, Kreditgeber und Sozialversicherungen 📌 Ergänzung BDO Studie, Juni 2024: 2024 will see a continuation of last year’s poor economic situation, which will lead to a further increase in insolvencies 👉Was sagen wir: Kein Grund zur Panik, aber erhöhte Aufmerksamkeit und Ausbau der Insolvenz- und Risikoprävention. Ergänzen wir die Risiken um die steigenden Anforderungen an die Integrität von Lieferketten, wird die Notwendigkeit eines schlagkräftigen Risikomanagements deutlich. Insbesondere ein professionelles Insolvenzmanagement mit Checklisten und geregelten Abläufen (wer macht was wann). Sprechen Sie uns gerne an. Quelle Bild: BR, 9.8.24

Geopolitical tensions impact Supply Chains AND global Balance of Power

❗Geopolitical Tensions impact Supply Chains AND Balance of Power ⚠️Heads up, Procurement & Supply Chain Folks.  Building and executing robust category strategies and preventing risks arising from complex supply chains and critical minerals/rare earths require a deep understanding of your supplier structure, down to the raw material sources. Many new regulations, such as the German LkSG or the European CSDDD, also require this. These days, it is essential to fully understand your supply chains, your business partners, and geopolitical developments to identify, assess, and prevent (commodity) risks, particularly those coming from regions that we would consider medium or high-risk regions. Critical minerals such as copper, cobalt, lithium, and rare earths are often used in climate, automotive, energy, digital technology, and military equipment. 📌Lithium, nickel, and cobalt are considered HIGH “Importance” & “Supply risk” from 2025 to 2035 by the U.S Department of Energy 📌Gallium: needed to build semiconductors essential for missile guidance systems and computer systems (not produced in the US) 📌Germanium: needed for infrared night vision goggles and solar panels on satellites (not produced in the US) 📌Titanium: used for aerospace components, missiles, armor plating, and naval ships. The US is reliant on 90% of titanium ore imports (US production fell from 140k to 50k tons in 2020) 📌Niobium: used in superalloys for jet engines (not produced in the US) The high demand has geopolitical consequences that we can’t ignore. China dominates about two-thirds of mineral processing worldwide, refining over half of aluminum, lithium, and cobalt and 90% of rare earths. This dominance gives China, in many ways, immense power over global supply chains and economies. However, we probably see a small but important development here. From a China-dominated monopoly to an oligopoly, including countries like the U.S., Australia, Myanmar, and Thailand, rare earth production is increasing, challenging China’s supremacy. Supply security and economic resilience are not just important to corporations but also to maintaining the balance of power (the US Congressional Research Service, for instance, published the impact of rare earths on US fighter jets, vessels, and submarines). 👉 If you are a Risk Manager, CPO, Category Manager/Buyer, or Supply Chain Leader, follow not just the market price. Understand the rationale behind it and plan accordingly. Your CFO and your CEO need your comprehensive expertise, not just on pricing. We all are becoming Risk Analysts above and beyond cost and savings.  

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About the company:
Joint Venture Truck OEMs
(Germany & Sweden)
Development Hydrogen fuel cell systems
approx. 500Employees, strong growth
GlobalTechnologyInnovator

Case Study

Industry: Automotive

Area: Organisation

Land: Deutschland & USA

Duration: 12 Months

Starting Point / Assignment

  • approx. EUR 400 million Procurement spend p.a. (rapidly increasing)
  • Independent joint venture between two large truck manufacturers
  • Start of series production in 2027 and development of the North American market with local production requires far-reaching development and expansion of Procurement, particularly regarding a global organization (skills, capacities, x-functional collaboration) and digitalization

Objectives

  • Creating transparency about the maturity level of the Procurement function
  • Prioritized action plan to gradually increase the maturity level regarding competencies, x-functional cooperation, productivity/efficiency, digitalization, etc.
  • Development of target organization model (2023, 2027, 2030) for production and non-production materials Procurement incl. all role descriptions and necessary capacity (FTE sizing)
  • Detailed transformation plan for the global Procurement organization aligned with the milestones "Start of series production" and "Market entry & local production North America“
  • Review of Procurement’s digital strategy and projects including future recommendations

Approach

  • Comprehensive maturity analysis of Procurement (targetP! method) with a focus on organization and digitalization based on personal interviews (all Procurement staff and top stakeholders) as well as in-depth document and data analysis (strategies, guidelines, process descriptions, digitalization initiatives, standards for category & supplier management, order & invoice volumes, etc.).
  • S/T/O analysis to determine the actual capacity utilization of all Procurement employees as part of individual interviews
  • Workshops/interviews with IT & Procurement on the Procurement system landscape and digital strategy

Results / „Deliverables“

  • Detailed maturity assessment report on Procurement (production and non-production materials) including prioritized actions and quick wins
  • Procurement digital strategy benchmark against best practices with specific recommendations for actions, risk analysis, and quick wins
  • Transparency regarding the actual use of capacity in Procurement, gap analysis of the respective profiles and stakeholder expectations
  • Role-based target Procurement organization with a step-by-step development plan (staffing, development, reallocation)
  • Tailor-made role descriptions for use in subsequent recruiting measures
About the company:
Joint Venture Truck OEMs
(Germany & Sweden)
Development Hydrogen fuel cell systems
approx. 500Employees, strong growth
GlobalTechnologyInnovator

Case Study

Industry: Automotive

Area: Organisation

Land: Deutschland & USA

Duration: 12 Months

Starting Point / Assignment

  • approx. EUR 400 million Procurement spend p.a. (rapidly increasing)
  • Independent joint venture between two large truck manufacturers
  • Start of series production in 2027 and development of the North American market with local production requires far-reaching development and expansion of Procurement, particularly regarding a global organization (skills, capacities, x-functional collaboration) and digitalization

Objectives

  • Creating transparency about the maturity level of the Procurement function
  • Prioritized action plan to gradually increase the maturity level regarding competencies, x-functional cooperation, productivity/efficiency, digitalization, etc.
  • Development of target organization model (2023, 2027, 2030) for production and non-production materials Procurement incl. all role descriptions and necessary capacity (FTE sizing)
  • Detailed transformation plan for the global Procurement organization aligned with the milestones "Start of series production" and "Market entry & local production North America“
  • Review of Procurement’s digital strategy and projects including future recommendations

Approach

  • Comprehensive maturity analysis of Procurement (targetP! method) with a focus on organization and digitalization based on personal interviews (all Procurement staff and top stakeholders) as well as in-depth document and data analysis (strategies, guidelines, process descriptions, digitalization initiatives, standards for category & supplier management, order & invoice volumes, etc.).
  • S/T/O analysis to determine the actual capacity utilization of all Procurement employees as part of individual interviews
  • Workshops/interviews with IT & Procurement on the Procurement system landscape and digital strategy

Results / „Deliverables“

  • Detailed maturity assessment report on Procurement (production and non-production materials) including prioritized actions and quick wins
  • Procurement digital strategy benchmark against best practices with specific recommendations for actions, risk analysis, and quick wins
  • Transparency regarding the actual use of capacity in Procurement, gap analysis of the respective profiles and stakeholder expectations
  • Role-based target Procurement organization with a step-by-step development plan (staffing, development, reallocation)
  • Tailor-made role descriptions for use in subsequent recruiting measures
About the company:
Family Owned Business with international Footprint
Family Owned Business with international Footprint
approx. 500 Mio.Turnover
approx. 3.000 Employees
Technology & Market Leaderin Harvesting Equipment

Case Study

Industry: Agricultural Machines

Area: Transformation

Country: Germany

Duration: ~ 18 Months

Starting Point / Assignment

  • approx. 200 million Procurement volume
  • Sole focus on operational processes (clerical function)
  • Strong focus on German plants, not prepared for internationalization and cooperation, despite of having operating units in the USA and China
  • Strong growth in turnover and increased internationalization
  • Procurement’s priority: Supply security (“keep the plants running”)
  • Digitalization not actively driven

Objectives

  • Create an understanding of Procurement’s maturity level
  • Identify potential (e.g., value contribution, efficiency, compliance), through more professional category & supplier management and digital support
  • Elaborate on alternative measures to develop Procurement and create an action plan, particularly concerning process improvements
  • If necessary, determine and argue capacity requirements
  • Optimize structures to prepare for growth and improved resource utilization

Approach

  • Comprehensive maturity analysis of Procurement (targetP! method) with a focus on organization and operational improvements (personal interviews with Procurement staff and top stakeholders) as well as in-depth document and data analysis (strategies, guidelines, process descriptions, digitalization initiatives, etc.)
  • Development of a holistic transformation plan and target organization model including roles and responsibilities, stakeholder integration, etc.
  • Early involvement of employees "future conferences to build my organization“
  • Joint creation of a practicable category structure, a Procurement Vision & Strategy


Results / „Deliverables“

  • First-time definition of a Procurement strategy with aligned objectives
  • Capacity optimization through targeted personnel expansion
  • Optimized organizational model and a more rigid category structure established
  • First system reviews with digital solution providers based on a digital action plan and precise requirements
  • Design of a customized multi-year training program for all roles
  • Implementation of Category Management training with pilots
  • Development and implementation of Procurement processes
About the company:
Family Owned Business with international Footprint
Family Owned Business with international Footprint
approx. 500 Mio.Turnover
approx. 3.000 Employees
Technology & Market Leaderin Harvesting Equipment

Case Study

Industry: Agricultural Machines

Area: Transformation

Country: Germany

Duration: ~ 18 Months

Starting Point / Assignment

  • approx. 200 million Procurement volume
  • Sole focus on operational processes (clerical function)
  • Strong focus on German plants, not prepared for internationalization and cooperation, despite of having operating units in the USA and China
  • Strong growth in turnover and increased internationalization
  • Procurement’s priority: Supply security (“keep the plants running”)
  • Digitalization not actively driven

Objectives

  • Create an understanding of Procurement’s maturity level
  • Identify potential (e.g., value contribution, efficiency, compliance), through more professional category & supplier management and digital support
  • Elaborate on alternative measures to develop Procurement and create an action plan, particularly concerning process improvements
  • If necessary, determine and argue capacity requirements
  • Optimize structures to prepare for growth and improved resource utilization

Approach

  • Comprehensive maturity analysis of Procurement (targetP! method) with a focus on organization and operational improvements (personal interviews with Procurement staff and top stakeholders) as well as in-depth document and data analysis (strategies, guidelines, process descriptions, digitalization initiatives, etc.)
  • Development of a holistic transformation plan and target organization model including roles and responsibilities, stakeholder integration, etc.
  • Early involvement of employees "future conferences to build my organization“
  • Joint creation of a practicable category structure, a Procurement Vision & Strategy


Results / „Deliverables“

  • First-time definition of a Procurement strategy with aligned objectives
  • Capacity optimization through targeted personnel expansion
  • Optimized organizational model and a more rigid category structure established
  • First system reviews with digital solution providers based on a digital action plan and precise requirements
  • Design of a customized multi-year training program for all roles
  • Implementation of Category Management training with pilots
  • Development and implementation of Procurement processes
About the company:
Leading Healthcare Provider
High reputation (Top rated Medical Care)
Site: approx. 825 Mio. Turnover
approx. 1.700employees
> 80.000 Patienten/Jahr

Case Study

Industry: Health Care/Clinic

Bereich: Interim & Entwicklung

Country: Germany

Duration: 6 Months

Starting Point / Assignment

  • approx. EUR 60 million spend p.a., complex spend structure
  • Procurement with a strong focus on processing and operational processes, no systematic spending management
  • Significant operational problems in day-to-day business led to high costs
  • Very insecure, demotivated team due to degrading treatment and extreme micromanagement by the previous Procurement Manager
  • Non-existent digitalization of core processes and tasks
  • Extensive, sometimes paralyzing bureaucracy in general and when approving requirements such as Requisitions, Purchase Orders and Contracts
  • Lack of discipline and ethics among sales reps (back-door selling, etc.)
  • Low reputation within the hospital, especially among chief physicians

Objectives

  • Main objective: Stabilization and reactivation of a highly frustrated team
  • Stabilization of day-to-day business, also due to above-average absences
  • Better distribution of the workload among the team members
  • Creating an understanding of the actual maturity level of Procurement, identifying potential (e.g., value contribution, efficiency, compliance)
  • Elaborating alternative measures to develop Procurement, and create an action plan, particularly concerning process simplifications (approvals of Requisitions, Purchase Orders, Contracts)
  • Improving customer service quality and interaction with internal customers

Approach

  • Comprehensive maturity analysis of Procurement involving stakeholders
  • Creation and coordination of a holistic development plan
  • Open door policy and individual meetings several times a week
  • Regular visits to the hospital wards to understand the needs and build trust
  • Frequent exchange with internal customers (regular personal exchange, participatory approach: Involvement of all employees, e.g. we
  • Weekly team meetings to discuss issues, improvement ideas, and solutions to ensure full commitment and involvement in improvement projects
  • Strong involvement in day-to-day business (negotiations, sourcing)
  • Process analyses, in particular, SAP optimization options & approvals

Results / „Deliverables“

  • Team stabilized, motivation increased, absences and absenteeism reduced (CEO quote: "You calmed people down very quickly with professional empathy and got them behind you")
  • First-time definition of a Procurement strategy with agreed upon targets
  • Regular coordination with internal customers (Chief physician quote: "we talk to each other now, things run faster, we finally feel well looked after")
  • Approval and implementation of moderate staff expansion with restructuring of work areas and balancing of workload
  • Redesign of framework agreements with improved commercial conditions
  • Complete processing of unfinished order processes (backlog)
  • Simplification and definition of core Procurement processes;
  • Addition of new SAP functionalities to drive automation & workload reduction
About the company:
Leading Healthcare Provider
High reputation (Top rated Medical Care)
Site: approx. 825 Mio. Turnover
approx. 1.700employees
> 80.000 Patienten/Jahr

Case Study

Industry: Health Care/Clinic

Bereich: Interim & Entwicklung

Country: Germany

Duration: 6 Months

Starting Point / Assignment

  • approx. EUR 60 million spend p.a., complex spend structure
  • Procurement with a strong focus on processing and operational processes, no systematic spending management
  • Significant operational problems in day-to-day business led to high costs
  • Very insecure, demotivated team due to degrading treatment and extreme micromanagement by the previous Procurement Manager
  • Non-existent digitalization of core processes and tasks
  • Extensive, sometimes paralyzing bureaucracy in general and when approving requirements such as Requisitions, Purchase Orders and Contracts
  • Lack of discipline and ethics among sales reps (back-door selling, etc.)
  • Low reputation within the hospital, especially among chief physicians

Objectives

  • Main objective: Stabilization and reactivation of a highly frustrated team
  • Stabilization of day-to-day business, also due to above-average absences
  • Better distribution of the workload among the team members
  • Creating an understanding of the actual maturity level of Procurement, identifying potential (e.g., value contribution, efficiency, compliance)
  • Elaborating alternative measures to develop Procurement, and create an action plan, particularly concerning process simplifications (approvals of Requisitions, Purchase Orders, Contracts)
  • Improving customer service quality and interaction with internal customers

Approach

  • Comprehensive maturity analysis of Procurement involving stakeholders
  • Creation and coordination of a holistic development plan
  • Open door policy and individual meetings several times a week
  • Regular visits to the hospital wards to understand the needs and build trust
  • Frequent exchange with internal customers (regular personal exchange, participatory approach: Involvement of all employees, e.g. we
  • Weekly team meetings to discuss issues, improvement ideas, and solutions to ensure full commitment and involvement in improvement projects
  • Strong involvement in day-to-day business (negotiations, sourcing)
  • Process analyses, in particular, SAP optimization options & approvals

Results / „Deliverables“

  • Team stabilized, motivation increased, absences and absenteeism reduced (CEO quote: "You calmed people down very quickly with professional empathy and got them behind you")
  • First-time definition of a Procurement strategy with agreed upon targets
  • Regular coordination with internal customers (Chief physician quote: "we talk to each other now, things run faster, we finally feel well looked after")
  • Approval and implementation of moderate staff expansion with restructuring of work areas and balancing of workload
  • Redesign of framework agreements with improved commercial conditions
  • Complete processing of unfinished order processes (backlog)
  • Simplification and definition of core Procurement processes;
  • Addition of new SAP functionalities to drive automation & workload reduction
About the company:
Highly renowned Qatari company
approx. 825 mn.Turnover
approx. 3.500 Employees
Regional Market Leader
Shipping, Maritime Logistik & Services

Case Study

Industrie: Reederei & Maritim

Bereich: Organisation & Interim

Country: Qatar

Duration: ~ 12 Months

Starting Point / Assignment

  • approx. EUR 300 million Procurement spend p.a.
  • Procurement with a strong focus on processing and operational processes, no systematic spending management
  • Significant operational problems in day-to-day business led to high costs for troubleshooting, escalations, and internal conflicts with stakeholders
  • Low acceptance and appreciation of Procurement and high political pressure despite excellent company results
  • Long-term vacancy in Procurement leadership impacts performance, customer satisfaction, and insecurity and leading to high fluctuation on buyer level
  • Digitalization of core processes and tasks only marginally developed

Objectives

  • Create an understanding of the true maturity level of Procurement and gain buy-in from the Executive Board
  • Identify potential (e.g., value contribution, efficiency, compliance), through more professional category & supplier management and automation
  • Elaborate on alternative measures to develop Procurement and create an action plan, particularly concerning process simplifications
  • Improve strategic and operational reporting for the CFO
  • Implement organizational and structural optimization to improve service quality
  • After two months: additional Role as VP Ad Interim due to the dismissal of the Head of Procurement

Approach

  • Comprehensive maturity analysis of Procurement involving stakeholders
  • Creation and coordination of a holistic transformation plan with staff adjustments, digitalization, and skills requirements
  • Development of a target organization model (category management) with role descriptions, responsibilities and recruiting support
  • Highly participative approach with intensive involvement of all employees, e.g., as part of "future conferences" (for the first time in the company) and expert teams with topic champions
  • Further development of Procurement and sourcing governance, e.g., tailored Category Structure, Procurement Vision & Procurement strategy and policies

Results / „Deliverables“

  • First-time definition of a Procurement strategy with aligned objectives
  • Approval and implementation of moderate staff expansion and allocation and expansion of required skills through comprehensive training plans
  • Start of digitalization projects based on a digital action plan (Supplier Portal)
  • Implementation of a Category Management approach and process and execution of 10 category pilots to identify additional value contribution
  • Development and implementation of comprehensive Supplier Management involving a newly designed supplier qualification process (Supplier Portal)
  • Implementation of a Procurement guideline & process manual and creation of comprehensive Procurement reporting with PowerBI
  • 10-month Interim Management and stabilization of the organization
About the company:
Highly renowned Qatari company
approx. 825 mn.Turnover
approx. 3.500 Employees
Regional Market Leader
Shipping, Maritime Logistik & Services

Case Study

Industrie: Reederei & Maritim

Bereich: Organisation & Interim

Country: Qatar

Duration: ~ 12 Months

Starting Point / Assignment

  • approx. EUR 300 million Procurement spend p.a.
  • Procurement with a strong focus on processing and operational processes, no systematic spending management
  • Significant operational problems in day-to-day business led to high costs for troubleshooting, escalations, and internal conflicts with stakeholders
  • Low acceptance and appreciation of Procurement and high political pressure despite excellent company results
  • Long-term vacancy in Procurement leadership impacts performance, customer satisfaction, and insecurity and leading to high fluctuation on buyer level
  • Digitalization of core processes and tasks only marginally developed

Objectives

  • Create an understanding of the true maturity level of Procurement and gain buy-in from the Executive Board
  • Identify potential (e.g., value contribution, efficiency, compliance), through more professional category & supplier management and automation
  • Elaborate on alternative measures to develop Procurement and create an action plan, particularly concerning process simplifications
  • Improve strategic and operational reporting for the CFO
  • Implement organizational and structural optimization to improve service quality
  • After two months: additional Role as VP Ad Interim due to the dismissal of the Head of Procurement

Approach

  • Comprehensive maturity analysis of Procurement involving stakeholders
  • Creation and coordination of a holistic transformation plan with staff adjustments, digitalization, and skills requirements
  • Development of a target organization model (category management) with role descriptions, responsibilities and recruiting support
  • Highly participative approach with intensive involvement of all employees, e.g., as part of "future conferences" (for the first time in the company) and expert teams with topic champions
  • Further development of Procurement and sourcing governance, e.g., tailored Category Structure, Procurement Vision & Procurement strategy and policies

Results / „Deliverables“

  • First-time definition of a Procurement strategy with aligned objectives
  • Approval and implementation of moderate staff expansion and allocation and expansion of required skills through comprehensive training plans
  • Start of digitalization projects based on a digital action plan (Supplier Portal)
  • Implementation of a Category Management approach and process and execution of 10 category pilots to identify additional value contribution
  • Development and implementation of comprehensive Supplier Management involving a newly designed supplier qualification process (Supplier Portal)
  • Implementation of a Procurement guideline & process manual and creation of comprehensive Procurement reporting with PowerBI
  • 10-month Interim Management and stabilization of the organization