Executive
Interim
Partners
Residenzstraße 27
Preysing Palais
80333 Munich
Phone: +49 89 552 7979 20
Fax: +49 89 552 7979 01
© Copyright – Executive Interim Partners
Challenges
- Market dynamics leading to high margin pressure and limited product differentiation
- High risk from strong dependency on volatile raw materials markets (TDI, steel) and limited ability to pass on increases to customers
- Strong suppliers in consolidated industries (oligopolies, local monopolies) in important material groups such as foam, springs, latex
- Resource heavy central purchasing team in addition to local purchasing organizations
- Very good purchasing price levels as a starting point, no low hanging fruit
Action Plan
- Translation and implementation of the company’s new strategy to focus on local entrepreneurship for the purchasing function
- Focusing of the Group Purchasing function on the key synergy drivers
- Reallocation of secondary synergy drivers to local responsibility and reduction of central team
- Strong emphasis on cross functional approach to identify potentials
KEY RESULTS
- Maintenance of the very good price levels for the material groups with close link to raw material markets, with a reduced central team
- Improved strategic positions and risk-mitigation in key material groups through introduction/development of additional suppliers
- Sustainable improvements of cost position through in- and outsourcing and value engineering
Further Challenges
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