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Improvement and management of procurement processes at an automotive supplier

Tier-1 automotive supplier confronted with extraordinarily many and high price increase demands from material and part suppliers – Previous dysfunctional process to negotiate down and pass-through price increases to customers to be improved and managed


Conceptional process improvement

  • Clarifying expectations of different stakeholders

  • Specifying the process scope to addressable spend for production materials

  • Identification of pain points of the previous process through cross-departmental workshops (e.g. Purchasing, Sales, Business Units, Controlling), expert interviews and own observations

  • Derivation, prioritization, and introduction of process improvements as part of a holistic process revision

  • Documentation and visualization in management presentation, work instructions and Business Process Modeling Notation (BPMN) workflows

  • Design and implementation of a rollout plan including conducting trainings

Operational process management (PMO)

  • Challenging buyers in dealing with price increases

  • Ensuring process adherence and documentation quality

  • Planning and scheduling and meetings with stakeholders

  • Documenting anydecisions

  • Regular tracking & reporting for the Board of Directors

  • Managing any escalations

Process analyses

  • Analyses of price increase effects per commodity, region, business unit

  • Recommend approval thresholds to balance cost control and workload


Introduction of a revised process to all stakeholders’ satisfaction

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