TMG hilft Ihnen, die Kosten ganzheitlich und nachhaltig zu optimieren

Procurement optimization

To achieve the greatest possible and most sustainable cost savings, deriving measures individually tailored to your company is the key to mutual success. Our holistic approach is divided into three central areas:

 

  • Potential analysis (quick check or 360° analysis)
  • Cost optimization
  • Category management
TMG 9 Service – Procurement 9 Procurement optimization

quick check or 360° analysis

Potential analysis

Based on an implementation concept tailored to your company – either developed in the course of an upstream potential analysis or at the start of the project – we realise existing cost-saving potentials with your purchasing department.
Thanks to a suitable team mix of TMG consultants made up of technicians and business people as well as consultants and purchasers, almost all activities can be taken over by us.
This includes, for example,

The potential analysis as part of procurement optimisation is an important step in identifying efficiency increases and cost reductions. The approaches and methods mentioned are explained in detail here:

  1. Quick Check Potential Assessment:
    • This is a quick, often superficial review to identify initial indications of optimisation opportunities in procurement. In a short period of time, central key figures and processes are examined to identify potential savings and efficiency improvements.
  2. 360° analysis & segment benchmark:
    • A comprehensive examination of all relevant purchasing processes and structures. This takes into account internal processes as well as external market conditions. The segment benchmark is used to compare a company’s own purchasing performance with that of its best competitors or industry standards, in order to clearly identify weaknesses and potential.
  3. Analysis of ordering and sourcing behaviour:
    • This involves analysing the company’s specific purchasing and procurement behaviour. The aim is to identify patterns in ordering behaviour that lead to inefficiencies, e.g. due to order quantities that are too small or an unfavourable choice of supplier. In addition, sourcing behaviour is reviewed to identify savings potential, i.e. the way suppliers are selected and contracts are designed.
  4. Review and analysis of the product and cost structure:
    • This approach examines which products or services incur the highest costs in purchasing and how they are structured. The product and cost structure is then checked to see whether the products are being procured efficiently and at optimal cost. The aim is to reduce product diversity, standardise and reduce unnecessary complexity in order to lower costs.
  5. Conducting value and purchase price analyses:
    • The aim here is to assess the actual value of a product or service in relation to its price. Purchase price analyses check whether the prices paid are in line with the market and whether costs can be reduced through negotiations or alternative sources of supply. Value analyses aim to optimise the functionality of products while reducing costs.

Reducing costs actively

Cost optimization

It has proven practicable (in particular considering the necessary and usually scarce resources on the customer side) to divide a holistic cost optimisation project into three stages.
The first stage is aimed at realising short-term savings and quick wins, mainly by way of negotiations and optimisation of standardised products and services.

Effective cost management is crucial to increasing a company’s competitiveness and profitability. The most important approaches and methods are:

  1. Condition management for existing suppliers:
    • Better conditions can be achieved by actively negotiating with existing suppliers, e.g. discounts, rebates or extended payment terms, which enables long-term savings.
  2. Increase value creation in purchasing:
    • Purchasing is considered a value-adding factor by implementing strategic measures such as supplier development, innovation management and supply chain optimisation.
  3. Direct & indirect material costs reduce:
    • Direct costs (raw materials, components) and indirect costs (office materials, services) are reduced through negotiations, changing suppliers or optimising procurement.
  4. Conduct make-or-buy analyses:
    • Help in deciding whether products or services should be manufactured in-house (make) or procured externally (buy). This helps to reduce costs and increase efficiency.
  5. Potential for reducing product costs / design to cost:
    • Products are designed in the development phase so that they can be produced cost-effectively by making design changes or using cheaper materials.
  6. Volume bundling & framework agreements:
    • By bundling purchasing volumes and negotiating framework agreements, better prices and stable conditions can be achieved, which increases cost efficiency.

Achieve the greatest possible and most sustainable effects

Category management

Purchasing is organized by product category to leverage strategic advantages. Key measures include developing strategies, market analyses, identifying and reducing supply risks, regular supplier negotiations and creating transparency in the purchasing portfolio.

The aim of category management is to organise purchasing into categories in order to achieve strategic advantages.
The most important methods and approaches are:

  1. Category management strategy development & implementation:
    • Definition of a targeted category management strategy that meets the specifics of the categories as well as the company’s objectives.
  2. Conducting market analyses & tenders:
    • In order to understand market trends and price developments, market analyses are carried out and targeted tenders are organised to obtain competitive offers.
  3. Identify supply risks & eliminate:
    • Analyse risks in the supply chain, e.g. dependency on suppliers or geographical risks. Measures to minimise risk include supplier diversification or safety stocks.
  4. Negotiate with suppliers:
    • Regular negotiations with suppliers to improve prices, delivery conditions and to ensure long-term contracts.
  5. Creating transparency in the purchasing portfolio:
    • Creating transparency across the entire purchasing portfolio, including expenditures, supplier dependencies and procurement costs. This enables informed purchasing decisions.
  6. Structuring and streamlining material groups:
    • Streamlining and standardising material groups to avoid redundant purchases and unnecessary inventories. This reduces complexity and increases cost efficiency.

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Your Contact Persons

Talk to

Martin
Fuzik

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Michael
Knuth

Development area

Additional services

Transformation of procurement

At the same time, the transformation of procurement ensures that it acts as an integral part of the corporate strategy and adapts agilely to market changes.

Digitalization of procurement

TMG’s purchasing and digitalisation experts help you to exploit the possibilities of automation and digitalisation in purchasing as well.

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We Look Forward to Discussing Matters with You!

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