Value enhancement program Purchasing of international bed and mattress manufacturers

CEO of the company

Leading international producer of beds and mattresses, with private equity owner

Group Purchasing Director

Ullrich Weirauch

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

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

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