Purchasing – organizational realignment

Purchasing – organizational realignment

Organizational realignment of the process for purchasing transport logistics services in an energy supply group

Abstract

By taking a top-down approach with subsequent detailing and initiation of optimization measures, an increase in the efficiency of the transport logistics process was made possible.

1

Initial situation and problem definition

Freight purchasing consolidated in accordance with company-wide savings program without further evaluation of processes

Performance of previous tasks no longer entirely possible, criticism from other divisions of the company

Managers demand more responsibility and initiative from employees

Complion takes over when the project is already underway

2

Objectives, project scope and benefits

Positioning of the division as a strategic purchasing department

Conception of the future departmental structure including resourcing requirements

Identification of savings potentials and reduction of process cycle times

Improvement to the work culture by anchoring process and decision-making competence and through inclusion of employee initiatives

3

Procedure

Analysis of the project’s progress so far, then elaboration of the measures

Analysis of procurement volumes, cost structure and activities

Analysis and optimization of core purchasing processes

Definition of the department’s target image, then use this to show the need for change in the process model

4

Results achieved and outlook

Positioning of transport logistics as strategic purchasing management department and outsourcing of operational activities to other company departments

Savings potential: approx. 75,000 Euros

Reduction of the process cycle time in the core purchasing process by approx. 20%.

Alignment of the new model with company divisions and determination of resource requirements (FTE)

Outlook: Implementation of further organizational changes