Benchmark Purchasing Department
Project at a glance
Customer: German site operator
Industries: Chemical / Pharmaceutical / Life Science
Concrete project successes
- Transparency of procurement performance
- Identification of weaknesses and optimization potentials
- Restructuring of product group responsibilities
- Savings of over 1 million euros p.a. in certain commodity groups
- Establishment of an efficient IT and process landscape
- Implementation of on-the-job training measures for the procurement staff
Implementation of a benchmark for the existing purchasing department of a leading site operator and industrial service provider for chemicals and pharmaceuticals and related process industries.
The client commissioned The Deutsche Business Consulting GmbH (DBC) to conduct a short benchmark to review the performance of its procurement department.
Together with the client, 12 questions or key figures were defined for the survey. The analysis was conducted in interviews across 25 companies and provided meaningful answers to the following questions/objectives:
- How efficient is my purchasing organization compared to the best?
- Does procurement generate the best possible profit contribution?
- In which areas is there potential for optimization?
- Are best-in-class methods being applied?
- Is a best-in-class purchasing organization established?
The DBC evaluated the interview results and created a corresponding result expose. Using a traffic light system, the corresponding performance was presented and recommendations were made. The implementation of the derived measures was technically accompanied by the DBC in follow-up projects.