Procurement & Supply Chain Optimization for the Machinery and Engineered Products

Strongly fluctuating order volumes, decreasing internal value creation depth, increasing competitive pressure and more complex interlocking of value creation structures put pressure on machine and plant manufacturers. With these demands, the importance of procurement has also grown steadily in recent years.

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Volatile initial situation and increasing competitive pressure

Machine and plant manufacturers are currently facing a number of challenges that are crucial for their profitability. Currently, they have to cope above all with strongly fluctuating order volumes; batch sizes are also becoming smaller and the processes are thus becoming considerably more complex. This complexity is further increased by the decreasing internal vertical range of manufacture and a more complex interlocking of the value-added structures.

Competition and cost pressures have also risen continuously in recent years, not least due to strong competition from companies in Asian countries, which now act as strong rivals in the field of innovation. Added to this are rising raw material prices and tight markets on the supplier side.

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Develop your procurement into a value driver

Companies from the mechanical and plant engineering sector live above all from their technical innovations and solutions. Therefore, engineering naturally has a high priority in the company. This is especially true for traditional, medium-sized companies. An efficient procurement organisation can also make a significant contribution to the company’s success and increase its overall resilience.

With our comprehensive industry expertise, we support your procurement to position itself as a value driver. In our projects, we work cross-functionally and use many technical approaches in addition to commercial levers for optimisation. In addition, we support you in the area of Indirect Spend, an area that experience shows is often neglected.

 

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Raw Material Management in procurement

The long-term success of raw material procurement is not only dependent on the performance of your procurement department. It is subject to a large number of external influencing factors, the risks of which can only be countered through targeted measures.

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Navigating today’s volatile markets requires a dynamic and proactive approach to cost management. We develop tailored cost optimization programs, helping uncover opportunities in direct spend and ensuring alignment with your strategic goals. From sourcing strategies to supplier negotiations, and from auctions to global sourcing projects, we provide end-to-end support. We make use of recognized industry indices to identify optimal buying times and secure favourable raw material conditions.

Engineering excellence requires precision cost management. We can optimize your cost structures using advanced methodologies, such as target costing, linear performance pricing and design-to-cost analysis. Our expertise extends to redesign, harmonization, and standardization projects, delivering significant value in mechanical and plant engineering by aligning your technical levers with your strategic goals.

Indirect spend is a key area for driving operational efficiency. We can help you establish optimal operating models, implement governance processes and develop strategic category management. Utilizing proven methods, like demand and tail-end management, we streamline indirect procurement and align it with your broader business objectives to deliver measurable results.

 

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Deciding between in-house production and outsourcing requires strategic clarity. With our extensive benchmark database and deep supplier market knowledge, we can guide you through make-or-buy analyses. For outsourcing, we identify the ideal partners and can support you from strategy development through contract finalization, ensuring alignment with your operational goals.

We can help you with the digital analysis of your costs, the conversion to e-sourcing and the digitalisation of your processes. In doing so, we can identify the optimal tools for you and support the implementation process in your company. In addition to classic purchasing tools, we’re also able to provide cross-functional support – including interfaces to engineering through the introduction of tools that enable additional technical levers

 

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In today’s volatile markets, supply chain resilience is critical for sustaining operational continuity and competitiveness. We can help you establish advanced risk management frameworks that proactively address supply chain vulnerabilities and reduce exposure to disruptions. By evaluating nearshoring options, we can help you enable supply chain diversification, minimize your dependency on distant suppliers and optimize overall cost efficiency. Our approach includes conducting sustainable supplier evaluation processes and fostering innovative partnerships. That helps ensure stable you have supply chains while also unlocking opportunities for innovation and working capital optimization.

 

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Liquidity and flexibility are essential for navigating market uncertainties. We can analyse payment terms, inventory turnover and other working capital metrics to uncover opportunities for optimization. By improving cash flow and operational efficiency, we can help you build the resilience needed to thrive in volatile markets.

 

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Our machinery and engineering experts

Philipp Mall

System Leader G&A, Italy & China | Managing Director

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Lina Tilley

Principal

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