OptiBuy in pursuit of the balanced supply chain for GEA

27 May 2020

GEA - one of the largest worldwide suppliers of machinery, plants, and technology for food processing and of related industries, had recently concluded a complex optimization project of its expansive CEE supply chain. The entire venture was assisted, reinforced, and co-managed by OptiBuy, a consultancy supporting companies in boosting procurement’s effectiveness and improving supply chain performance.

 

 

 

Employing over 18 000 people and reporting revenue of 4,8 bln EUR (2019), GEA with its slightly scattered supply chain structure - the result of group’s intensive growth and increasing global reach – focused on optimizing supplier base and lowering the overall number of active partners. In addition, GEA has also identified the diversification of its sources by increasing the group’s presence on Central and Eastern Europe markets as a complementary key target.

The project launched at the beginning of 2018, with workshops held at each of the initially chosen, five GEA factories. The undertaking focused on the Machine Parts (Machining) product group, which consisted of almost 900 components for, initially 5 GEA locations. However, as new sourcing possibilities unfolded, identified by OptiBuy’s experts, the group’s management decided to increase the number of plants included in the project with sites located in Germany, Netherlands, Switzerland, and Italy.

 

 
GEA’s top management’s high-level of involvement, admirably, was of fundamental value for the entire project. Along with the group’s internal efficient communication, executive support became a key success factor for the excellent cooperation and swift change introduction. Therefore, for the overall project’s performance and final outcomes – said Bartłomiej Bącik, Partner at OptiBuy and project manager
 

 

Engaging standard procurement tools, but also proprietary methodology developed in the course of years of sourcing activities, OptiBuy’s team identified almost 600 CEE-based companies. Shortlisted then to 30 prospect suppliers, subsequently audited by a joint team of OptiBuy and GEA experts. Eventually, GEA was presented with carefully chosen candidates to become a part of the group’s supplier base. Currently, 7 recommended suppliers are in operation, with several more to be contracted soon.

 

 
In April 2018 we started a project called “Balanced Supply Chain Footprint” with its main goal to expand our spending in BCC by finding new qualified and competitive suppliers, specialized in the machining process, to develop strong and long term relationships. GEA approached OptiBuy to support us and we started our investigations. OptiBuy suggested several potential suppliers, guided us during supplier visits and on-site audits with high potential suppliers in a very efficient way. OptiBuy’s expertise and knowledge of the supplier market in CEE positively influenced the outcomes of this project – said Erik Frissen, Global Category Manager at GEA
 

 

Main outcomes of the project - strengthening the strategic security of sources and optimization of supplier directory, are crowned with an estimated 1,2 mln EUR of savings.

 

Explore the extensive case study

 

 


 

About GEA

GEA is one of the largest suppliers for food processing technology and related industries. The global group specializes in machinery, plants, as well as process technology and components. GEA provides sustainable solutions for sophisticated production processes in diverse end-user markets and offers a comprehensive service portfolio. Present across over 50 countries, the group employs over 18 000 people and has reported a revenue of 4,8 bln EUR in 2019.

Learn more about GEA, www.gea.com

 

 

About OptiBuy

OptiBuy is an international consultancy specialized in procurement management. We are providing a broad range of outstanding procurement solutions, using an international network of our own offices (Poland, Czech, Switzerland and China), extensive market knowledge and advanced set of IT tools. We are one of the leading procurement consulting companies in Central-Eastern Europe. Our specialties are optimization of procurement costs (cost-cutting projects), global sourcing projects and implementation of the specialized procurement software solutions (Ivalua, NextBuy).

Learn more about OptiBuy, www.optibuy.com

 

More info:
Maciej Hollek
PR Manager
OptiBuy
maciej.hollek@optibuy.com
+48 730 602 363

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