Procurement and Common Parts Project for a Producer of Building Systems

Client Situation:

Across Europe, the product portfolio was not consolidated, and the sourcing strategies differed by region. A consolidation of product portfolio combined with international sourcing should therefore uncover significant optimisation potential.

Our Approach:

At first, the system parts of all countries were categorised. System parts with the same functionality were pooled together in one common parts group. The objective of the next step was to reduce the product portfolio to one product per common part group, thereby reducing the diversity of parts and increasing procurement volumes.

The necessary selection was carried out based on agreed prioritisation parameters in a multi-day workshop in which all country product managers participated. An international sourcing project for the future product portfolio complemented the common parts project.

The inclusion of all decision makers, as well as a rigid implementation controlling, secured the overall success of the project.