VIS Consult

Cost Reduction & Competitiveness through Supply Chain Management

Find out more how successful projects have helped to reduce costs and optimize processes in order to increase Competitiveness. From reducing Procurement Costs to implementing efficient Warehouse and Transport Concepts – I can help you realize the savings potential and increase your company’s value through targeted Supply Chain Management.

Cost-Cutting / Controlling

  • A cost reduction of up to 15% for engines was achieved by involving the Purchasing Department in new development at an early stage, which is a prime example of Effective Purchasing Advice and Supply Chain Management.
  • Strategic Purchasing of standard and drawing parts for Series and Project Production in Low-Cost Countries such as China, India and Turkey has resulted in a cost reduction of up to 40%. These savings are the result of thorough market research and optimization of Supply Chain Management.
  • The reduction of Process Costs and the further development of Purchasing 4.0 were driven by the conversion of data exchange between Suppliers and the Purchasing/Finance Departments to electronic communication, which optimizes both Cost Management and Cost Reduction in the context of Supply Chain Management.
  • As a manager, the Purchasing Department was successfully integrated as part of a Company Acquisition in India, whereby 15 local employees were trained in Supply Chain Management in order to achieve a significant reduction in costs.
  • By changing the Manufacturing Processes and materials, such as casting, forging or welding, savings of around 30% were achieved for A/B parts, which underlines the importance of Production Management and Supply Chain Management for Cost Reduction.

Strategic Orientation

  • By clustering Group-wide procurement requirements and setting up a Material Group Management System, Group-wide synergies were leveraged and costs reduced as part of Supply Chain Management.
  • As part of Supply Chain Management, Purchasing was involved in Development Projects for old and new machines at an early stage, which led to effective Cost Reductions in the After-Sales Area and in Value Analyses.
  • Consistent Cost-Benefit Analyses and Strategic Evaluations led to recommendations ready for decision for the Group-wide in-house or external production of components, assemblies and modules, resulting in a considerable reduction in costs in Supply Chain Management.
  • The establishment of a Standardized Contract System based on Framework Agreements and Quality Assurance Agreements as well as a Supplier Code of Conduct strengthened Supply Chain Management and contributed to Cost Reduction and efficient Supplier Management.
  • Development and implementation of Sourcing Concepts that focus on the number and locations of Suppliers as well as the degree of cooperation and complexity of purchased parts improved Supply Chain Management and led to a reduction in costs through Strategic Consulting.

Supplier Management

  • Standardization of systematic analysis in Global Procurement Markets with heterogeneous, international purchasing structures per Material Group, which led to an increase in efficiency and improvement in quality in Supply Chain Management.
  • By identifying Benchmarks and leveraging Potential with a competitive, innovative and Global Supplier Pool, cost reductions were achieved in Supply Chain Management and valuable findings from market research were integrated.
  • The Harmonization of Guidelines in the areas of quality, finance and ethics, as well as the processes for Supplier Selection and Evaluation, are central aspects of Supply Chain Management. This standardization is a strategic step towards Cost Reduction and improves the Efficiency of the Supply Chain through targeted strategic advice.
  • By continuously reviewing suppliers as part of the Supplier Approval Process, the risk of default has been reduced and Compliance and Sustainability ensured.

Logistics / Supply Chain

  • The optimization of Production Planning, Production Control and the efficient Management of Inventories by combining average inventories and sales forecasts are key elements of Production Management. These Supply Chain Management Measures make a significant contribution to reducing costs and increasing Operational Efficiency.
  • The implementation of Shopfloor Management has shortened the Decision-Making Paths between the interfaces in the plant and increased the Motivation of everyone involved. This is an example of effective Lean Management that simultaneously helps to reduce costs and optimize Supply Chain Management.
  • Further development of Delivery and Storage Level Concepts using rolling forecasts, KANBAN, consignment stock and C-Parts Management led to reduced Storage Costs and increased Material Availability in Supply Chain Management.
  • The development of a Global Logistics Concept for inbound and outbound freight led to an increase in suppliers’ adherence to delivery dates for deliveries between the plants and to the customer. This concept is a core component of Logistics Management and promotes Cost Reduction and the efficiency of Supply Chain Management.

Structural / Processing Organization / Leadership

  • The realignment of Group Purchasing in a Matrix Organization through the establishment of Group-wide Material Group Managers resulted in more efficient communication and more agile implementation in Supply Chain Management.
  • The reduction of duplicate work and the simplification of interfaces between the Purchasing and Work Preparation Departments were achieved by successfully merging them into the new Supply Chain Management Department. This restructuring is a strategic step towards Cost Reduction and strengthens the company’s position in the area of Supply Chain Management.
  • By motivating and empowering Employees through Expanded Competencies, a Cultural Change was implemented in Supply Chain Management to create a proactive Support Unit with an entrepreneurial and agile focus.