Success Stories

Success Stories

The Procurex team develops its strengths in diverse environments and has already solved a wide variety of challenges in the past. We know that every company, depending on its industry, size and structure, requires an individual approach, also with suppliers. That is why we focus on people in our work. Numerous satisfied customers confirm us in this conviction. We have documented some implemented projects for you here.

Read how other companies have benefited from our work, what improvements we have achieved and how these have affected the operating results of these companies. Be inspired and see the real potential of purchasing.

1 | Global Sourcing

Establishment of a new supplier base in Asia without compromising product quality or delivery performance

 

  • Establishment & development of a new supplier base
  • Supplier selection incl. supplier audits
  • Average savings of 34 % on a landed cost basis

 

 

In a world characterized by increasing global competition, lower purchasing costs from suppliers are an important and effective lever. When a company deals with the topic of global sourcing, it should consider both the potentials and the risks. Different perceptions of product quality and adherence to delivery dates or the equipment of test and measurement laboratories at the suppliers are factors that must be taken into account. Cultural differences, some of which are considerable, can also have a decisive influence on the success of a global sourcing strategy. Those who take all these issues into account can build long-term supplier relationships with Asian suppliers and benefit from massive and sustainable savings in purchasing.

The task set by our client was to establish a new supplier base in the Asian region without compromising on product quality. This involved a large number of individual components as well as complete assemblies. New suppliers were sought for deep-drawn sheet metal parts including complex welded assemblies, complex forged components, injection molded components, as well as electrical and electronic assemblies. All had to meet the highest manufacturing & quality requirements.

The project began with a comprehensive analysis of the existing parts lists and material groups. In addition, an analysis of the component cost structures was carried out in order to prioritize the scope of inquiries for components with the highest potential. The next step was an extensive and thorough supplier selection process, in which the relevant companies were analyzed in detail and subjected to intensive supplier audits. This was an unavoidable and important procedure to ensure the quality standard already mentioned several times. With the few suppliers who met the necessary quality requirements, we concluded corresponding framework agreements in coordination with the company and accompanied or coordinated the process & product release as an interface between customer and supplier.

The intensive work of the one-year project has paid off: the company achieved average savings of 34 % in landed costs. Depending on the component, it will save 25 % or more there in the future. For some assemblies, the savings even reach up to 90 %. In this way, we at Procurex created a sustainable positive business impact and ensured the client an ideal starting position for the challenges of the future. Although there was internal resistance to new suppliers from the Asian region, we were able to overcome this together with the suppliers and establish a supplier relationship that is appreciated by all sides.

2 | Regional Sourcing

New supplier in Eastern Europe for automotive manufacturer

 

  • Systematic analysis of the Eastern European supplier market
  • Handling of the complete sourcing process
  • 5.5 % savings on a landed cost basis

 

 

In hardly any other industry the price pressure is higher than in the automotive sector. The industry is characterized by fierce price wars, intensive bidding rounds and ever new technical developments. The pressure is enormous and when it comes to achieving savings – no matter how small – virtually every stone is turned, no matter where in the world. In this project, an automotive manufacturer drew on our expertise in this industry. The exploited potential was to lead significantly to a better contribution margin.

New suppliers were sought for brake components, kinematic assemblies and die-cast components. As part of the project, which lasted just under a year, we carried out a systematic analysis of the potential of the Eastern European supplier market. Subsequently, we carried out the entire sourcing process and were in charge from the first inquiry to the negotiation and awarding of the contract. We supported the organization of supplier days in different countries. During several subsequent supplier visits, we clarified the framework conditions, audited the production sites and prepared sourcing proposals for the client. Based on the results, Procurex developed a multi-step roadmap to sustainably optimize the entire purchasing organization and ensure the client’s competitiveness. The end result was a saving of 5.5 %, satisfied clients but also happy suppliers. For all parties involved, looking into the future opens up a clear view of a tomorrow that has the makings of a promising collaboration.

3 | Cost & Process Analysis

Fully exploit the potential of an existing supplier

 

  • Detailed project-specific cost & process analysis
  • Cost workshop with selected suppliers
  • Savings of 4.3 %

 

 

Loyalty is important and almost a rarity in our world defined by constant change and price pressure. It often makes no sense to change an existing supplier who does a good job. Savings are one thing, competencies such as reliability, on-time delivery and of course quality are something else. Likewise, relocations and the need for new product and process approvals involve effort and significant costs that can negate any potential savings. This project by an international supplier of passenger and commercial vehicles was not about developing a new supplier. The aim was to make better use of the potential offered by the existing supplier (injection molded and carbon parts).

The basis was a detailed, project-specific cost & process analysis including cycle time recording in the supplier’s manufacturing process. Part of the process was also a joint cost workshop with the supplier. In addition, we analyzed and optimized the inbound logistics costs as part of this project, which lasted just under 4 months. We also found optimization opportunities in the packaging concept and were able to reduce costs together.

In addition to the actual task of identifying potential for improvement in the existing supplier relationship and implementing new approaches, we imparted our knowledge. In individually tailored training courses, we instructed the company’s buyers in international branch offices. The company is building on this knowledge to achieve current and future success. In the existing project, we enabled the customer to achieve future savings of 4.3 %. But even more important is the realization that it always comes down to the human factor. At Procurex, we understand this, which is why we always look for a solution that benefits everyone in the end. In this project, that was more the case than usual, and we were pleased on the one hand to optimize an existing supplier relationship and on the other hand to be able to pass on valuable expertise.

4 | Restructuring & strong actions against price increases

Cost reduction and strategic adaptation of the supplier portfolio in a very short time

 

  • Price negotiation with existing suppliers
  • Strategic expansion of supplier portfolio in just 2 months
  • Savings of 3.6 %

 

 

Changing circumstances and new requirements of the target group can be reasons to adjust the supplier portfolio. Many assume that this process will quickly take several months. But projects in purchasing do not always mean that a lot of time has to pass before the changes become noticeable. It can sometimes also take a short time for considerable savings to be realized.

This project also benefited from our expertise in the automotive industry. A medium-sized company had the goal of improving its own purchasing structure. The basis was an extensive evaluation of the status quo and the derivation of a SWOT-analysis. This was caused by a restructuring in the organization. From the insights gained, we derived a concrete strategy and related measures. We actively conducted price negotiations with critical suppliers. At the same time, we also took care of the development and approval of new suppliers. This expansion enabled the company to fend off the demanded price increases on the one hand and to reduce costs in some areas on the other. The bottom line was savings of 3.6 %. The entire project took no longer than 2 months.

5 | Optimization in the Product Development Phase

Cost reduction & lead time optimization in the prototype phase

 

  • Short term deployment & fast implementation
  • Expansion and adaptation of the supplier base
  • Savings in the prototype phase of 32.5 %

 

 

Today, companies can create high-precision prototypes from CAD data more easily than ever before. Thanks to digitalization and modern rapid prototyping technologies, it is now possible to realize a short “time-to-market”. The resulting projects serve to set the course for the company and often determine its successful future. Since research and development is a cost- and investment-intensive area, it makes sense to look for savings potential in procurement here as well. This was precisely the thinking of one of our customers, for whom reliable parts availability was a priority.

In this case, our help was needed quickly. And we took the term “rapid” literally. Two days after the customer’s initial inquiry, we already started working on site. We optimized deadline-critical delivery dates and developed an action plan for internal process optimization. This step was not limited to the purchasing department per se, but also addressed interfaces with other departments. Subsequently, we negotiated the framework agreements and ensured the desired parts availability. In the end, the company had some valuable new suppliers for turned and milled parts, sheet metal assemblies and electronic components. At the same time, however, we also shed light on existing contracts and renegotiated them.

Once again, we had the opportunity to share our expertise (in the areas of negotiation tactics, cost analysis, optimization of manufacturing processes) on site. We trained purchasers at the customer’s site and provided them with the knowledge to be able to independently initiate improvements in purchasing in the future. Furthermore, we supported the client in preparing for the ISO 9001 audit.

Through our intervention, the customer was able to both accelerate delivery dates and significantly reduce costs. In the end, more than 32 % savings were achieved in the prototyping phase, and delivery dates that had originally been considered impossible to meet became a reality. Above all, we have remained in the client’s good memory with our fast response time.