Presentation

Our client, an automotive subcontractor, wants to set up a deep procurement optimization program. KEPLER offers a procurement diagnosis based on the data obtained from workshops with management and operational staff, external sourcing, and expert interventions. 

Context

  • Target: 5% savings on three main categories and 6M € in mass procurement 
  • The recent loss of an important market and 50% of turnover 
  • Under-staffed procurement organization 
  • Very low overall procurement maturity of the organization 
  • Fragile collaboration between the Design Office, Production and Procurement 

Objective(s)

Category: Deliver Total Performance 

  • Carrying out a diagnosis allowing the assessment of the opportunities for short- and medium-term gains, the associated leeways, and building a detailed action plan to achieve the target and sustain performance

In this kind of crisis context (loss of customer market share, talent drain, low overall procurement maturity), innovation is necessary to adapt and improve business health. The activation of innovative levers has to be tested. After checking the potentials, we have pushed our client to transform his operating methods so that he would be able to activate and combine, thanks to multidisciplinary project teams, more powerful levers: adaptation of the products technical specification, research, and qualification of new sources
of supply in Eastern Europe, redistribution of the market shares, make or buy of certain links in the product value chain.
Mathieu Louis-Sylvestre, Director - Procurement Practice Leader
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Procurement Referents

Procurement Business Cases