Description
In 2011, Roland Berger Strategy Consultants once again carried out an extensive global study on trends and benchmarks in the purchasing of production and non-production-related materials and services - the fourth study since 1999
.
Purchasing Excellence 2011_FINAL_E.pptx
PURCHASING EXCELLENCE STUDY
Purchasing trends and benchmarks 2011 –
Production and non-prod.-related materials/services
Munich, November 2011
2 Purchasing Excellence 2011_FINAL_E.pptx
Contents
A.
STRUCTURE OF THE STUDY
3
B.
KEY TRENDS IN PURCHASING
Summary and key findings of the study 10
C.
DETAILED SURVEY RESULTS
2003 vs. 2009 13
D.
INDIVIDUAL PERFORMANCE BENCHMARK
Your responses compared to peer industries and best practice 30
3 Purchasing Excellence 2011_FINAL_E.pptx
A
STRUCTURE OF THE STUDY
4 Purchasing Excellence 2011_FINAL_E.pptx
The study investigates trends in purchasing excellence across
different industries and countries
Structure of the Purchasing Excellence Study
In 2011, Roland Berger Strategy Consultants once again carried out an extensive
global study on trends and benchmarks in the purchasing of production and
non-production-related materials and services – the fourth study since 1999
More than 500 CEOs, COOs and purchasing managers were interviewed
The goal of the study was to identify key trends and benchmarks in
purchasing. This year we looked particularly at any changes since the
2008/2009 financial and economic crisis
We compared the results to those of previous years' studies
to identify any general trends
5 Purchasing Excellence 2011_FINAL_E.pptx
Roland Berger conducted its first Purchasing Excellence Study
more than ten years ago
PROCESS OPTIMIZATION
e.g.: e-procurement
ORGANIZATIONAL
DEVELOPMENT
e.g.: lead buying
SCM OPTIMIZATION
e.g.: strategic alliances,
supply base compression
1999 STUDY
History of the Purchasing Excellence Study
2003 STUDY 2009 STUDY
> Focus on non-production-
related materials (NPM)
> Focus on retail and service
industries
> More than 100 respondents
from Germany, Austria and
Switzerland
> Focus on NPM
> Focus on retail and service
industries
> More than 400 respondents
from across Europe
> Looked at both production
materials (PM) and NPM
> Various industries
> More than 500 respondents
worldwide
> Performance ranking by
industry
MEGATRENDS
2011 STUDY
> Looked at both production
materials (PM) and NPM
> Various industries
> More than 500 respondents
worldwide
> Performance ranking by
industry
RISK MANAGEMENT IN
VOLATILE MARKETS
e.g.: supply, financing, ensuring
capacity
6 Purchasing Excellence 2011_FINAL_E.pptx
Automotive, retail and electronics are still the leading industries –
Strongest growth was seen in financial services
PERFORMANCE CUBE
Performance
Public
sector
Healthcare
Transport
Power/
utilities
Financial services
Strategy
Purchasing excellence Average Underperformers Sector/company performance
(color = total number of points)
OVERALL RESULTS
Total 2009 Total 2011 Sector
Retail
IT/Telecom
Engineered products
Automotive
Electronics
Consumer goods
Chemicals
Pharmaceuticals
Financial services
Power/utilities
Transport
Healthcare
Public sector
Trend
IT/telecom
Pharmaceuticals
Chemicals
Electronics
Consumer goods
Retail
Automotive
Engineered
products
Enabler
7 Purchasing Excellence 2011_FINAL_E.pptx
We evaluate companies' performance along three dimensions –
Results are shown in the Purchasing Excellence Performance Cube
Performance
Purchasing Excellence Performance Cube – Companies' purchasing performance
BASIS PERFORMANCE BENCHMARK COMMENTS
> We evaluate companies' performance along three
dimensions using the Roland Berger purchasing
approach
> For each dimension, we compare individual
companies' answers to those of the top
performers (top 10% of respondents)
> The result is three performance clusters for each
dimension
– Purchasing excellence
– Average
– Bottom players
> We call companies that demonstrate "purchasing
excellence" in all three dimensions "purchasing
excellence enterprises"
Bottom
players
Average
Purchasing
excellence
Bottom
players
Average Purchasing
Excellence
Purchasing
excellence
Average
Bottom
players
S
t
r
a
t
e
g
y
Purchasing
excellence
Purchasing
excellence
Bottom player
Average
BACKUP
Purchasing excellence Average Underperformers Sector/company performance
(color = total number of points)
Enabler
8 Purchasing Excellence 2011_FINAL_E.pptx
16% of companies made it into the "purchasing excellence" cluster
– An improvement on 2009
Share of companies in survey,
2011 vs. 2009 [%]
PURCHASING
EXCELLENCE
AVERAGE
UNDERPERFORMERS
37
47
16
40
46
14
Difference
[% pts] '11 vs. '09
+2
+1
-3
Overview – share of companies in each performance cluster
2011 2009
9 Purchasing Excellence 2011_FINAL_E.pptx
Respondents by industry, country and purchasing volume –
There were over 500 in total
1) Central & Eastern Europe
COUNTRY SPLIT
[% of respondents]
PURCHASING VOLUME
[EUR m]
INDUSTRY
[% of respondents]
5%
5%
7%
7%
7%
8%
13%
16%
Other
2)
3%
Public sector
3%
Transport
4%
Pharmaceuticals
IT/telecom
Healthcare
6%
Financial services
Energy/utilities
Electronics
7%
Chemicals
Retail
Consumer goods
9%
Engineered products
Automotive
>2,500
3%
1,000-
2,500
9%
250-
1,000
31%
50-250
38%
Individual analysis of your study results
> Comparative representation including top
performers in and outside the industry
> Detailed feedback on best practices in
purchasing
> Quick check of spend volumes and
spend-cube setup
> Focus workshops in purchasing including
cross-functions to identify additional
optimization potential
> Defined actions for closing any
performance gaps
Transparenz schaffen Performance Benchmarking
OPTIMIERUNGSHEBEL ZUM SCHLIESSEN DES PERFORMANCE-GAP
Spend Case
Commodity
Review
Organisation
& Prozess
Review
Strategy
Check
Balancing Coating Welding/ brazing Testing Total overhaul Surface treatment Machining Total spend
17.3 9.6
3.0
1.6
1.5
1.1 0.4 0.1
Share of
total spend [%] 100 12 9 56 9 6 2 1 0 1 2 3 4 5
Studientrends Bewertung [0-5]
Low Per- former Purchasing excellence Average
Purchasing-Excellence-Merkmale (Auszug)
1 Etablierung des Einkaufs als akzeptierter Business Partner
3 Verstärkter Einsatz von Einkaufs- kooperationen
2 Renaissance des Kostenprimats
4 Supply Base Compression weiter auf dem Vormarsch
6 Nutzung von Insourcing-Optionen
5 Management von Risiken in der Lieferantenbasis
7 Sicherstellung Nachhaltigkeit in der Lieferkette
Individuelle Perf ormance (Outside-in-Einschätzung auf Basis Fragebogen) Perf ormance Gap
Im Gespräch zu diskutieren
• Einkauf auf GF-Ebene vertreten, auf Augenhöhe mit Cross-Funktionen
• Nutzung von Kooperationen in ausgewählten Warengruppen
• Kostenoptimierung als oberstes strategisches Ziel des Einkaufs
• Lieferantenanzahl in Vergangenheit stark reduziert
• Nutzung interner Kapazitäten in ausgewählten Bereichen
• Risikomanagementsystem im Einkauf installiert und genutzt
• Sustainability ist strategisches Ziel und wird von Lieferanten eingefordert
Im Gespräch zu diskutieren
PURCHASING
EXCELLENCE
Average
Under-
performers
32 Purchasing Excellence 2011_FINAL_E.pptx
The four pillars of our study represent the basis for
individual company performance benchmarking
A
Approach to basic performance benchmarking
Purchasing Excellence Study data pool Individual performance benchmarking
Focus interviews Project database
Online survey Phone interviews
Strategy
Performance
Enabler
0 1 2 3 4 5
Studientrends Bewertung [0-5]
Low Per-
former
Purchasing
excellence
Average
Purchasing-Excellence-Merkmale
(Auszug)
1 Etablierung des Einkaufs als akzeptierter
Business Partner
3 Verstärkter Einsatz von Einkaufs-
kooperationen
2 Renaissance des Kostenprimats
4 Supply Base Compression weiter auf
dem Vormarsch
6 Nutzung von Insourcing-Optionen
5 Management von Risiken in der
Lieferantenbasis
7 Sicherstellung Nachhaltigkeit in der
Lieferkette
Individuelle Perf ormance
(Outside-in-Einschätzung auf Basis Fragebogen)
Perf ormance Gap
Im Gespräch zu diskutieren
• Einkauf auf GF-Ebene vertreten, auf
Augenhöhe mit Cross-Funktionen
• Nutzung von Kooperationen in
ausgewählten Warengruppen
• Kostenoptimierung als oberstes
strategisches Ziel des Einkaufs
• Lieferantenanzahl in Vergangenheit stark
reduziert
• Nutzung interner Kapazitäten in
ausgewählten Bereichen
• Risikomanagementsystem im Einkauf
installiert und genutzt
• Sustainability ist strategisches Ziel und
wird von Lieferanten eingefordert
Im Gespräch zu diskutieren
Detailbetrachtung und Gesamtergebnis
Strategie Performance Enabler Gesamt Branche
Kliniken
Verortung im Cube
Performance
S
t
r
a
t
e
g
i e
Öffentl.
Inst.
Kliniken
Automobil
Elektronik
Maschinenbau
Pharma
Chemie
Energie/ Versorger
Öffentliche
Institutionen
Banken/
Versicherungen
Handel
Verortung der Performance Branche / Unternehmen (Farbgrad Gesamtpunktzahl)
Purchasing Excellence Durchschnitt Schlusslicht
Transport
IT/Telekom
IT/Telekom
Handel
Pharma
Chemie
Elektronik
Automobil
Transport
Energie
Banken &
Versich.
Maschin-
enbau
BASIC PERFORMANCE BENCHMARKING
33 Purchasing Excellence 2011_FINAL_E.pptx
Your company's positioning in the Purchasing Excellence
Cube is based on the scores achieved in the study
A BASIC PERFORMANCE BENCHMARKING
Purchasing Excellence rating – Example
Purchasing Excellence Average Underperformers
Sector/company performance
(Color = total number of points)
Performance
Public
sector
Healthcare
Transportation
Power/
utilities
Financial services
Strategy
IT/telecom
Pharmaceuticals
Chemicals
Electronics
Consumer goods
Retail
Automotive
Engineered
products
Enabler
INDIVIDUAL PERFORMANCE BENCHMARKING COMMENTS (example)
> Performance of "Sample Corp."
compared to other study respondents
based on questionnaires
– Strategy: Top section in the
"Average" cluster
– Performance: Bottom section in the
"Average" cluster
– Enabler: Top section in the
"Average" cluster
34 Purchasing Excellence 2011_FINAL_E.pptx
Individual performance benchmarking – Detailed results
on the performance level
A BASIC PERFORMANCE BENCHMARKING
Detailed results for Sample Corp. – Example evaluation of performance level
STUDY TRENDS EVALUATION [0-5]
Average
Individual performance
(Outside-in estimate based on questionnaire)
Performance gap Under-
performers
Purchasing
Excellence
2
Purchasing is an essential driver for cross-
functional cost-cutting projects
Purchasing controls and drives cross-functional cost-
cutting projects
6
Supply chain financing Working capital position improved from within
Purchasing
5
Sustainability forms a key part of the purchasing
strategy
Comprehensive sustainability activities in these three
dimensions: economic, ecological, social
8
Cost improvement in collaboration with
suppliers
Suppliers involved in cost-cutting and performance
improvement projects
13
Early involvement of purchasing in project-related
and strategic tasks
Purchasing involved early on in identifying
requirements and defining specifications
12
Comprehensive measurement of purchasing
performance
KPIs as well as internal and external benchmarks
applied to determine Purchasing performance
15
Use of advanced technologies Use of e-auctions, Web EDI, B2B platforms, etc.
0 1 2 3 4 5
KPI = Key Performance Indicator
35 Purchasing Excellence 2011_FINAL_E.pptx
Advanced performance benchmarking is based on a quick check of
the Purchasing Excellence rating
B ADVANCED PERFORMANCE BENCHMARKING
Advanced performance benchmarking procedure
1) Determined by company size and complexity as well as number and complexity
of the focus areas to be analyzed (categories, processes, systems)
Organize setup
Collect basic quantitative
and qualitative data and
information
Create
transparency
> Discussions on setup
> Interview sessions
> Workshop preparations
Conduct quick-
check workshops
> Workshop
– Category review and
levers
– Organization review
and areas with room
for improvement
– Process review
Define potential
and priorities
> Benchmark
documentation
> Wrap-up discussion
– Potential
– Priorities
– Next steps
1-2 weeks
1)
Potential estimated
and priorities specified
Optimization levers
and areas with room
for improvement
identified
Transparency created Basis defined for
Advanced Performance
Benchmarking
0 1 2 3
36 Purchasing Excellence 2011_FINAL_E.pptx
Benchmarking results in prioritized optimization actions including
potential and defined next steps
B POTENTIAL AND PRIORITIES
Advanced performance benchmarking results
RESULTS ANALYSIS SCOPE PERFORMANCE BENCHMARKING
I STRATEGY
III ENABLER
Vision,
mission and
strategy
Service
performance
Cost
per-
for-
mance
Capital
perfor-
mance
I
II
III
Organization and
resources/HR
Controlling,
objectives
and KPIs
Infrastructure,
systems
and tools
Processes
II PERFORMANCE
Optimization actions prioritized
Next steps defined
KPI = Key Performance Indicator
doc_458615895.pdf
In 2011, Roland Berger Strategy Consultants once again carried out an extensive global study on trends and benchmarks in the purchasing of production and non-production-related materials and services - the fourth study since 1999
.
Purchasing Excellence 2011_FINAL_E.pptx
PURCHASING EXCELLENCE STUDY
Purchasing trends and benchmarks 2011 –
Production and non-prod.-related materials/services
Munich, November 2011
2 Purchasing Excellence 2011_FINAL_E.pptx
Contents
A.
STRUCTURE OF THE STUDY
3
B.
KEY TRENDS IN PURCHASING
Summary and key findings of the study 10
C.
DETAILED SURVEY RESULTS
2003 vs. 2009 13
D.
INDIVIDUAL PERFORMANCE BENCHMARK
Your responses compared to peer industries and best practice 30
3 Purchasing Excellence 2011_FINAL_E.pptx
A
STRUCTURE OF THE STUDY
4 Purchasing Excellence 2011_FINAL_E.pptx
The study investigates trends in purchasing excellence across
different industries and countries
Structure of the Purchasing Excellence Study
In 2011, Roland Berger Strategy Consultants once again carried out an extensive
global study on trends and benchmarks in the purchasing of production and
non-production-related materials and services – the fourth study since 1999
More than 500 CEOs, COOs and purchasing managers were interviewed
The goal of the study was to identify key trends and benchmarks in
purchasing. This year we looked particularly at any changes since the
2008/2009 financial and economic crisis
We compared the results to those of previous years' studies
to identify any general trends
5 Purchasing Excellence 2011_FINAL_E.pptx
Roland Berger conducted its first Purchasing Excellence Study
more than ten years ago
PROCESS OPTIMIZATION
e.g.: e-procurement
ORGANIZATIONAL
DEVELOPMENT
e.g.: lead buying
SCM OPTIMIZATION
e.g.: strategic alliances,
supply base compression
1999 STUDY
History of the Purchasing Excellence Study
2003 STUDY 2009 STUDY
> Focus on non-production-
related materials (NPM)
> Focus on retail and service
industries
> More than 100 respondents
from Germany, Austria and
Switzerland
> Focus on NPM
> Focus on retail and service
industries
> More than 400 respondents
from across Europe
> Looked at both production
materials (PM) and NPM
> Various industries
> More than 500 respondents
worldwide
> Performance ranking by
industry
MEGATRENDS
2011 STUDY
> Looked at both production
materials (PM) and NPM
> Various industries
> More than 500 respondents
worldwide
> Performance ranking by
industry
RISK MANAGEMENT IN
VOLATILE MARKETS
e.g.: supply, financing, ensuring
capacity
6 Purchasing Excellence 2011_FINAL_E.pptx
Automotive, retail and electronics are still the leading industries –
Strongest growth was seen in financial services
PERFORMANCE CUBE
Performance
Public
sector
Healthcare
Transport
Power/
utilities
Financial services
Strategy
Purchasing excellence Average Underperformers Sector/company performance
(color = total number of points)
OVERALL RESULTS
Total 2009 Total 2011 Sector
Retail
IT/Telecom
Engineered products
Automotive
Electronics
Consumer goods
Chemicals
Pharmaceuticals
Financial services
Power/utilities
Transport
Healthcare
Public sector
Trend
IT/telecom
Pharmaceuticals
Chemicals
Electronics
Consumer goods
Retail
Automotive
Engineered
products
Enabler
7 Purchasing Excellence 2011_FINAL_E.pptx
We evaluate companies' performance along three dimensions –
Results are shown in the Purchasing Excellence Performance Cube
Performance
Purchasing Excellence Performance Cube – Companies' purchasing performance
BASIS PERFORMANCE BENCHMARK COMMENTS
> We evaluate companies' performance along three
dimensions using the Roland Berger purchasing
approach
> For each dimension, we compare individual
companies' answers to those of the top
performers (top 10% of respondents)
> The result is three performance clusters for each
dimension
– Purchasing excellence
– Average
– Bottom players
> We call companies that demonstrate "purchasing
excellence" in all three dimensions "purchasing
excellence enterprises"
Bottom
players
Average
Purchasing
excellence
Bottom
players
Average Purchasing
Excellence
Purchasing
excellence
Average
Bottom
players
S
t
r
a
t
e
g
y
Purchasing
excellence
Purchasing
excellence
Bottom player
Average
BACKUP
Purchasing excellence Average Underperformers Sector/company performance
(color = total number of points)
Enabler
8 Purchasing Excellence 2011_FINAL_E.pptx
16% of companies made it into the "purchasing excellence" cluster
– An improvement on 2009
Share of companies in survey,
2011 vs. 2009 [%]
PURCHASING
EXCELLENCE
AVERAGE
UNDERPERFORMERS
37
47
16
40
46
14
Difference
[% pts] '11 vs. '09
+2
+1
-3
Overview – share of companies in each performance cluster
2011 2009
9 Purchasing Excellence 2011_FINAL_E.pptx
Respondents by industry, country and purchasing volume –
There were over 500 in total
1) Central & Eastern Europe
COUNTRY SPLIT
[% of respondents]
PURCHASING VOLUME
[EUR m]
INDUSTRY
[% of respondents]
5%
5%
7%
7%
7%
8%
13%
16%
Other
2)
3%
Public sector
3%
Transport
4%
Pharmaceuticals
IT/telecom
Healthcare
6%
Financial services
Energy/utilities
Electronics
7%
Chemicals
Retail
Consumer goods
9%
Engineered products
Automotive
>2,500
3%
1,000-
2,500
9%
250-
1,000
31%
50-250
38%
Individual analysis of your study results
> Comparative representation including top
performers in and outside the industry
> Detailed feedback on best practices in
purchasing
> Quick check of spend volumes and
spend-cube setup
> Focus workshops in purchasing including
cross-functions to identify additional
optimization potential
> Defined actions for closing any
performance gaps
Transparenz schaffen Performance Benchmarking
OPTIMIERUNGSHEBEL ZUM SCHLIESSEN DES PERFORMANCE-GAP
Spend Case
Commodity
Review
Organisation
& Prozess
Review
Strategy
Check
Balancing Coating Welding/ brazing Testing Total overhaul Surface treatment Machining Total spend
17.3 9.6
3.0
1.6
1.5
1.1 0.4 0.1
Share of
total spend [%] 100 12 9 56 9 6 2 1 0 1 2 3 4 5
Studientrends Bewertung [0-5]
Low Per- former Purchasing excellence Average
Purchasing-Excellence-Merkmale (Auszug)
1 Etablierung des Einkaufs als akzeptierter Business Partner
3 Verstärkter Einsatz von Einkaufs- kooperationen
2 Renaissance des Kostenprimats
4 Supply Base Compression weiter auf dem Vormarsch
6 Nutzung von Insourcing-Optionen
5 Management von Risiken in der Lieferantenbasis
7 Sicherstellung Nachhaltigkeit in der Lieferkette
Individuelle Perf ormance (Outside-in-Einschätzung auf Basis Fragebogen) Perf ormance Gap
Im Gespräch zu diskutieren
• Einkauf auf GF-Ebene vertreten, auf Augenhöhe mit Cross-Funktionen
• Nutzung von Kooperationen in ausgewählten Warengruppen
• Kostenoptimierung als oberstes strategisches Ziel des Einkaufs
• Lieferantenanzahl in Vergangenheit stark reduziert
• Nutzung interner Kapazitäten in ausgewählten Bereichen
• Risikomanagementsystem im Einkauf installiert und genutzt
• Sustainability ist strategisches Ziel und wird von Lieferanten eingefordert
Im Gespräch zu diskutieren
PURCHASING
EXCELLENCE
Average
Under-
performers
32 Purchasing Excellence 2011_FINAL_E.pptx
The four pillars of our study represent the basis for
individual company performance benchmarking
A
Approach to basic performance benchmarking
Purchasing Excellence Study data pool Individual performance benchmarking
Focus interviews Project database
Online survey Phone interviews
Strategy
Performance
Enabler
0 1 2 3 4 5
Studientrends Bewertung [0-5]
Low Per-
former
Purchasing
excellence
Average
Purchasing-Excellence-Merkmale
(Auszug)
1 Etablierung des Einkaufs als akzeptierter
Business Partner
3 Verstärkter Einsatz von Einkaufs-
kooperationen
2 Renaissance des Kostenprimats
4 Supply Base Compression weiter auf
dem Vormarsch
6 Nutzung von Insourcing-Optionen
5 Management von Risiken in der
Lieferantenbasis
7 Sicherstellung Nachhaltigkeit in der
Lieferkette
Individuelle Perf ormance
(Outside-in-Einschätzung auf Basis Fragebogen)
Perf ormance Gap
Im Gespräch zu diskutieren
• Einkauf auf GF-Ebene vertreten, auf
Augenhöhe mit Cross-Funktionen
• Nutzung von Kooperationen in
ausgewählten Warengruppen
• Kostenoptimierung als oberstes
strategisches Ziel des Einkaufs
• Lieferantenanzahl in Vergangenheit stark
reduziert
• Nutzung interner Kapazitäten in
ausgewählten Bereichen
• Risikomanagementsystem im Einkauf
installiert und genutzt
• Sustainability ist strategisches Ziel und
wird von Lieferanten eingefordert
Im Gespräch zu diskutieren
Detailbetrachtung und Gesamtergebnis
Strategie Performance Enabler Gesamt Branche
Kliniken
Verortung im Cube
Performance
S
t
r
a
t
e
g
i e
Öffentl.
Inst.
Kliniken
Automobil
Elektronik
Maschinenbau
Pharma
Chemie
Energie/ Versorger
Öffentliche
Institutionen
Banken/
Versicherungen
Handel
Verortung der Performance Branche / Unternehmen (Farbgrad Gesamtpunktzahl)
Purchasing Excellence Durchschnitt Schlusslicht
Transport
IT/Telekom
IT/Telekom
Handel
Pharma
Chemie
Elektronik
Automobil
Transport
Energie
Banken &
Versich.
Maschin-
enbau
BASIC PERFORMANCE BENCHMARKING
33 Purchasing Excellence 2011_FINAL_E.pptx
Your company's positioning in the Purchasing Excellence
Cube is based on the scores achieved in the study
A BASIC PERFORMANCE BENCHMARKING
Purchasing Excellence rating – Example
Purchasing Excellence Average Underperformers
Sector/company performance
(Color = total number of points)
Performance
Public
sector
Healthcare
Transportation
Power/
utilities
Financial services
Strategy
IT/telecom
Pharmaceuticals
Chemicals
Electronics
Consumer goods
Retail
Automotive
Engineered
products
Enabler
INDIVIDUAL PERFORMANCE BENCHMARKING COMMENTS (example)
> Performance of "Sample Corp."
compared to other study respondents
based on questionnaires
– Strategy: Top section in the
"Average" cluster
– Performance: Bottom section in the
"Average" cluster
– Enabler: Top section in the
"Average" cluster
34 Purchasing Excellence 2011_FINAL_E.pptx
Individual performance benchmarking – Detailed results
on the performance level
A BASIC PERFORMANCE BENCHMARKING
Detailed results for Sample Corp. – Example evaluation of performance level
STUDY TRENDS EVALUATION [0-5]
Average
Individual performance
(Outside-in estimate based on questionnaire)
Performance gap Under-
performers
Purchasing
Excellence
2
Purchasing is an essential driver for cross-
functional cost-cutting projects
Purchasing controls and drives cross-functional cost-
cutting projects
6
Supply chain financing Working capital position improved from within
Purchasing
5
Sustainability forms a key part of the purchasing
strategy
Comprehensive sustainability activities in these three
dimensions: economic, ecological, social
8
Cost improvement in collaboration with
suppliers
Suppliers involved in cost-cutting and performance
improvement projects
13
Early involvement of purchasing in project-related
and strategic tasks
Purchasing involved early on in identifying
requirements and defining specifications
12
Comprehensive measurement of purchasing
performance
KPIs as well as internal and external benchmarks
applied to determine Purchasing performance
15
Use of advanced technologies Use of e-auctions, Web EDI, B2B platforms, etc.
0 1 2 3 4 5
KPI = Key Performance Indicator
35 Purchasing Excellence 2011_FINAL_E.pptx
Advanced performance benchmarking is based on a quick check of
the Purchasing Excellence rating
B ADVANCED PERFORMANCE BENCHMARKING
Advanced performance benchmarking procedure
1) Determined by company size and complexity as well as number and complexity
of the focus areas to be analyzed (categories, processes, systems)
Organize setup
Collect basic quantitative
and qualitative data and
information
Create
transparency
> Discussions on setup
> Interview sessions
> Workshop preparations
Conduct quick-
check workshops
> Workshop
– Category review and
levers
– Organization review
and areas with room
for improvement
– Process review
Define potential
and priorities
> Benchmark
documentation
> Wrap-up discussion
– Potential
– Priorities
– Next steps
1-2 weeks
1)
Potential estimated
and priorities specified
Optimization levers
and areas with room
for improvement
identified
Transparency created Basis defined for
Advanced Performance
Benchmarking
0 1 2 3
36 Purchasing Excellence 2011_FINAL_E.pptx
Benchmarking results in prioritized optimization actions including
potential and defined next steps
B POTENTIAL AND PRIORITIES
Advanced performance benchmarking results
RESULTS ANALYSIS SCOPE PERFORMANCE BENCHMARKING
I STRATEGY
III ENABLER
Vision,
mission and
strategy
Service
performance
Cost
per-
for-
mance
Capital
perfor-
mance
I
II
III
Organization and
resources/HR
Controlling,
objectives
and KPIs
Infrastructure,
systems
and tools
Processes
II PERFORMANCE
Optimization actions prioritized
Next steps defined
KPI = Key Performance Indicator
doc_458615895.pdf