Professionalize the purchasing function to be more competitive

Context

A corrugated cardboard manufacturer wants to make significant purchasing savings to improve its competitiveness in terms of price and its leadership in certain products.

For this, it is necessary to professionalize the purchasing function and to greatly reduce the purchasing costs of the main raw materials while making their supplies more reliable and secure.

 

Approach

 

Conduct of a diagnosis and a benchmark on purchasing terms of key products, definition of a 3-year purchasing strategy and launching of 4 major projects:

  • Organization of the purchasing department

  • Reduction of references, with the help of the method and manufacturing departments

  • Consumption of chemicals (starch, glue, ink)

  • Renegotiations with suppliers

Results

  • Development of a 3-year transformation plan for purchasing

  • Structuring of the procurement function: reorganization, process redesign, extension to all the purchased products families, monitoring of purchasing gains

  • Reduction in the number of product references (weight and width) and associated inventories in collaboration with manufacturing department

  • Reduction in the number of suppliers and renegotiation of purchasing conditions (contract, volume commitment,...)

  • Decrease in quantities of chemicals purchased by action on production lines (Integrated Control of Processes,...)

  • Switching from purchase of  products only to purchase of complete range of services (example with starch : the mixer is maintained by the material supplier)

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About Marris Consulting

Marris Consulting is an industry consulting and training company specialized in the Theory of Constraints (ToC) and Critical Chain Project Management. We focus on improving the performance of manufacturing and process industries by using Constraints Management combined with Lean and Six Sigma. To boost project performance, we also use Critical Chain Project Management (CCPM), which we sometimes combine with Lean Engineering. Our 2-day performance audits, our performance consulting services and our project management, Lean & ToC training by our industry consultants offer a wide range of solutions to help our clients around the world reach the highest possible levels of performance.

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