Procurement Logistics

The procurement logistics has to ensure the economic supply of the company with not self produced raw materials and supplies, trade goods and buying parts in line to the demand. Especially in medium-sized and large companies, the procurement logistics quickly reaches a high level of complexity which is difficult to master. The complexity arises primarily due to

  • the diverse and heterogeneous tasks and targets in the functional departments of purchasing, materials management and logistics,
  • the numerous to be optimized in-house interfaces (e.g. between materials management and production) and
  • the high number of individual business relationships with suppliers, which require continuous reviews and adjustments (see figure below).

Increasing cost pressure, volatile customer demands, decreasing real net output ratios and increasing requirements for the quality and delivery reliability put a tremendous pressure on procurement managers. Therefore, decision-makers in procurement are required to constantly monitor and improve the procurement processes, strategies and concepts in order to realize an efficient procurement. In addition, the procurement logistics needs to be designed so that it can be quickly and flexibly adapted to changing conditions in the business environment at any time; it has to be changeable.

 

Service Overview of Procurement Logistics

Following the Fraunhofer philosophy, we as neutral and independent consultants complete a comprehensive analysis of business processes, strategies, concepts and IT systems in your procurement logistics. Based on the analysis results, we develop customized and changeable solutions that take into account both current and future requirements.

If required, we support you in the following tasks

  • Analysis and evaluation of the procurement portfolio
  • Make-or-buy decision
  • Selection of appropriate forms of procurement (single sourcing, supply procurement, JIT / JIS, call-off orders and framework contracts, etc.)
  • Evaluation of the assessment of demand as well as material planning and scheduling
  • Analysis, evaluation and improvement of delivery procedures and procurement processes
  • Inventory dimensioning and optimization
  • Analysis and selection of appropriate sourcing strategies (e.g. local vs. global sourcing, single vs. multiple sourcing)
  • Choice of supply concepts and strategies (e.g. VMI, consignment storage)
  • Choice, analysis and development of logistics key figures in the procurement
  • Selection, qualification and evaluation of suppliers

Your Benefits

  • Streamlining of procurement processes and optimization of organizational structures Reduction of material, logistics and overhead costs
  • Increasing service levels and reduction of procurement lead times
  • Reduction of capital commitment and storage costs in procurement storages

»The procurement logistics is fundamental for the success of a company. The reduction of material and procurement costs and the reduction of working capital are enhancing the profitability of enterprises significantly.«

– Achim Schmidt,
   Fraunhofer IML