Establishment of an Eastern Europe Sourcing Center in the Czech Republic for a medium-sized large company

in the role of Director Purchasing Europe

Company: Large mid-sized company

Industry: Glass / Glass Ceramics

Revenue: €1.9 billion

Number of employees: 15,400

Situation at the client:
The sharp increase in the procurement of various direct materials from Asian LCCs poses an increased risk (transport time/costs, dependency). Sourcing from Eastern Europe, however, is underdeveloped.

Headquarters: Mainz, Germany

Website:
SCHOTT.com

Role: Head of special project

Period (duration): 03/2014 to 10/2014 (6 months)

Responsibilities:

  • Project Budget: €100,000
  • 2 employees
  • Establishment of a strategic competence center for procurement in Eastern Europe to reduce supply chain dependency on Asia
  • Refinancing of service costs through effective savings (net savings) with a payback period of < 6 months
  • Expansion of the strategic competence center for procurement in line with the order situation and payback attractiveness
  • Cross-functional potential analysis at category level, including the creation of a ranking
  • Site selection & recruitment of a strategic purchaser in the Czech Republic
  • Identification, testing, and qualification of new sources of supply
  • Generation of flagship use cases for further procurement projects
  • 80% reduction in dependency on Asian aluminum suppliers
  • Shortening of lead/transport time by up to 4 weeks
  • Reduction of the payback period from 5 to 1.5 months within 3 years
  • Tripling of the sourcing share from Eastern European suppliers
  • Addition of one full-time position (1 FTE) in the 4th year
  • Securing buy-in from the demand owner to source from Eastern Europe
  • Qualified integration of suppliers into e-procurement-based tenders

You were strict but always fair, leading with great expectations but also with great knowledge and contribution.

Erika Zagor
Operational Purchasing Manager
SCHOTT Hungary Kft.

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