Sourcing Excellence

Sourcing Excellence

In manufacturing companies, the material ratio is typically between 40 and 70 percent, depending on the industry: KPIs influenced by purchasing such as supplier quality and delivery reliability, replacement times, costs and inventories are directly reflected in the balance sheet and income statement. Purchasing thus plays a major role with a direct impact on the performance of the entire company.

Optimally positioned purchasing is thus a lever for achieving competitive advantages. It is important here not to act as a “cost cutter” in the short term, but to anticipate future developments in terms of the market environment, product portfolio, customer and supplier structure and general conditions with foresight, to incorporate them into the purchasing strategy and thus significantly increase the value of the company.

Typical starting points
  • Disproportionately high material costs and high working capital
  • High stocks or low stock turnover
  • Poor material availability and poor delivery reliability
Competences of candidus
  • We do not act as “cost cutters” in the short term, but act with foresight for future developments with regard to the market environment, product portfolio, customer and supplier structure.
  • We support you and your team – from the definition of future products and the design of the value chain to the definition of payment and delivery terms with the selected suppliers.
  • Our consulting competencies lie in both strategic and operative purchasing: from make-or-buy decisions to optimal disposition and warehousing strategies.
SELECTED PROJECT REFERENCES

Mechanical engineering industry

Development of global sourcing in China and Mexico
Key results:

  • Reduction of the material costs considered by 17 %.
  • 28% reduction in replacement time

Pharmaceutical industry

Analysis and optimization of the procurement core processes as well as the order and supplier structure
Key results:

  • 25% reduction in inventories
  • Increase delivery reliability and quality by up to 35%.

Food industry

Analysis, evaluation and reformulation of the make-or-buy strategy
Significant results:

  • Reduction of considered material costs by 10%.
  • Reduction of lead time by 15%.