Procurement & Supply Chain Optimization for the Machinery and Engineered Products

Strongly fluctuating order volumes, decreasing internal value creation depth, increasing competitive pressure and more complex interlocking of value creation structures put pressure on machine and plant manufacturers. With these demands, the importance of procurement has also grown steadily in recent years.

 

Volatile initial situation and increasing competitive pressure

Machine and plant manufacturers are currently facing a number of challenges that are crucial for their profitability. Currently, they have to cope above all with strongly fluctuating order volumes; batch sizes are also becoming smaller and the processes are thus becoming considerably more complex. This complexity is further increased by the decreasing internal vertical range of manufacture and a more complex interlocking of the value-added structures.

Competitive and cost pressures have also risen continuously in recent years, not least due to strong competition from companies in Asian countries, which now act as strong rivals in the field of innovation. Added to this are rising raw material prices and tight markets on the supplier side.

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Develop your procurement into a value driver

Companies from the mechanical and plant engineering sector live above all from their technical innovations and solutions. Therefore, engineering naturally has a high priority in the company. This is especially true for traditional, medium-sized companies. An efficient procurement organisation can also make a significant contribution to the company’s success and increase its overall resilience.

With our comprehensive industry expertise, we support your procurement to position itself as a value driver. In our projects, we work cross-functionally and use many technical approaches in addition to commercial levers for optimisation. In addition, we support you in the area of Indirect Spend, an area that experience shows is often neglected.

 

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Our machinery and engineering services

Within the framework of comprehensive cost optimisation programmes, we analyse potentials in your direct spend and support you with new tenders, global sourcing projects, supplier negotiations or auctions. In raw materials procurement, we define optimal buying times with you and negotiate conditions with the help of recognised indices.

Particularly in mechanical and plant engineering, we can tap into considerable value-added potential through technical levers. We carry out comprehensive analyses, such as target costing, linear performance pricing or design-to-cost considerations, and use them to optimise your cost structures. We also support you with redesign, harmonisation or standardisation projects.

In the area of Indirect Spend, we help you implement an optimal operating model, define governance processes and derive and implement commodity group strategies. For this purpose, we use professional methods such as demand management and tail-end management.

 

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We conduct make-or-buy analyses for you and use our extensive benchmark database for this purpose. In the case of outsourcing, we use our know-how of the supplier markets to find the optimal partner for you and support the entire process from the initiation to the signing of the contract.

 

We support you in the digital analysis of your costs, the conversion to e-sourcing and the digitalisation of processes. In doing so, we identify the optimal tools for you and accompany the implementation process in your company. In addition to classic purchasing tools, we also provide cross-functional support with interfaces to engineering through the introduction of tools for the use of technical levers.

 

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We help you to set up or further develop a professional risk management system and support you in evaluating your suppliers. In addition, we work with you to build a sustainable supplier management system so that you can ensure more stable supply chains in the future and also benefit from partnerships in the areas of innovation and working capital.

 

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We analyse your payment terms and inventory turnover and identify potential for optimising your working capital. In this way, we create the flexibility you need to survive in volatile markets.

 

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Raw Materials Study 2021 with Handelsblatt

For more than a year, the pandemic has had us firmly in its grip. What impact are you seeing on your raw material supply and purchasing? What measures have you taken to stabilize your supply chains?

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Selected client from the engineering sector

 

Our machinery and engineering experts

Thibault Pucken

Managing Director

thibault.pucken@inverto.com Contact

Philipp Mall

Managing Director

philipp.mall@inverto.com Contact

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