Process optimization results in supply risk mitigation and cost reduction
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Along my procurement role of one of my clients I got to know the logistic organisation better and better. Due to a recent merge, the supply chain of my core group of operating companies (opco’s) was still coping with inefficiencies. A few of them were directly interfering with the strategic procurement role for which I cared global responsibility, together with 2 other colleagues.
Approach
Being responsible for the ‘in time deliveries’ to the opco’s in my area, I informed these opco’s during a period of 3 months, stressing the advantages of an accurate/most realistic and ‘in time’ forecast. Due to the history of the 2 separate companies, there were a lot of different specs in place for the same ‘products’. I organised the project ‘Harmonisation Specs’, through which time was made available to co-operate with Quality Assurance, to realise a serious harmonisation /reduction of specs. At the same time, I did a proposal for a change in the product/area combination and workload of my and my 2 peer Manager’s positions.
Result
Both the quarterly forecasts were trust worthier, and the number of ‘SKU’s’ were reduced, which gave me a much better (earlier and more competitive) market position and a mitigation of supply risks.
My proposal was approved and implemented with the handover to my successor, resulting in, for all 3 positions:
- a more balanced operational responsibility
- a broader product- and market knowledge
- a strategic better regional global spread of suppliers and opco’s
- a less stressful situation in times, taking over work from your colleagues while on leave
Having no technical- and medical background, he managed in a short period of time, set on strict cost reduction targets, to integrate in our internal engineering culture.
He did not only achieve a good relationship with the engineers, but, in some occasions, he also managed to let them change the strict quality measures on MRI-parts, without changing the final quality result. Aiming to have a better negotiation position with his suppliers and save money to reach his targets.
I admired his flexibility and commitment in projects and his loyalty towards his colleagues and employer”