Initial Situation
Purchasing within a company has to deal with much more than just procurement tasks these days. The buyer has to research articles, check specifications, obtain offers, carry out price comparisons, initiate orders, process complaints and possibly hold annual meetings. The number of suppliers a company works with seems endless.
Especially with sources of supply with low volume, the negotiating position and the standardization of processes is difficult. For low procurement volumes, it is impossible to be granted long terms of payment or it is too costly to set up EDI interfaces.
Procurement via many individual suppliers also creates processes and effort in the logistics and accounting departments. Handling standardized processes such as shipping guidelines or uniform payment terms poses a major challenge.
BOOSTRACK will help you in your shopping transformation!
Analysis by BOOSTRACK
Our customer, one of the top 30 automotive suppliers in the world with more than 14 locations in 100 countries, approached us with exactly this requirement. First and foremost, it was about reducing the number of suppliers and ensuring the flawless delivery of its C-parts.
With a consignment warehouse from our partner Lingemann, the company benefits from the fact that the required goods are always at hand. Long delivery times or delays, through to material bottlenecks that can massively affect production, are a thing of the past. The consignment warehouse, which is located in the immediate vicinity of the company premises, allows our customers to save on the investment costs for their own goods or parts warehouse. Another advantage is the simplified billing at fixed intervals, which minimizes the administrative effort.
Implementation
With the main focus on the supply of goods, the delivery strategy was first optimized. A total of more than 1000 suppliers could be replaced through the implementation of consignment warehouses. The installation of our BOOST.Tower dispensers, including filling service, supports the employees significantly in their operative work.
The orders are placed via the customer-specific e-shop, which now covers over 90% of the need for C-parts.
Operation and ongoing optimization
Our customer benefits from a simplified C-parts management, which significantly reduces the administrative effort. In addition, comprehensive control over the entire ordering process is just as possible as a targeted standardization of the work processes in logistics.
For the future, an expansion of the automation with additional output systems such as the BOOST.Tower, the BOOST.Box and the BOOST.Sensor is planned.
Measurable success
The measures introduced enabled our customer to record enormous time savings, reduced personnel costs and automatic goods supply. There were significantly fewer inconvenient walking routes for the employees and storage for defined goods was no longer necessary.