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Global sourcing of machine parts

THE CUSTOMER – GEA
GEA – one of the largest worldwide suppliers of machinery, plants, and technology for food processing industries. Provid-ing sustainable solutions for sophisticated production pro-cesses in diverse end-user markets, GEA is present across over 50 countries, employs over 18 000 people and has reported a revenue of 4,8 bln EUR in 2019.

THE GOALS

  • SUPPLIER BASE OPTIMIZATION
    • by reducing the number of suppliers
    • by switching to suppliers with wider technological and production spectrum
  • STRENGTHENING OF STRATEGIC SECURITY
    • by diversifying sources
    • by increasing presence on CEE supply markets
  • & BOOKING ASSOCIATED SAVINGS

The scope

  • Product group: Machine Parts
  • No of sourced components: ~ 900
  • No of sites involved: 13 Geographical reach: DE, NL, CH, IT

THE EXECUTION
& OUTCOMES

  • To date, 7 recommended suppliers are in operation, with several more to be contracted in the nearest future (out of 900 longlisted; 30 shortlisted & 14 jointly audited prospects).

THE TIMEFRAME

  • ca. 12 months
PROJECT EXECUTION & FINAL OUTCOMES

Project launched in 2018, with workshops held at each of the initially chosen, five GEA’s factories. During these meetings, representatives of OptiBuy and GEA (including members of Engineering and Procurement Departments), set the general frames of the project: scope, range, demands, critical require- ments for prospect suppliers, key success criteria etc.

Opinion of the project leaders

GEA’s top management’s high-level of involvement, admirably, was of funda- mental 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.

Bartłomiej Bącik

Partner, OptiBuy

In April 2018 we started to expand our spend in BCC by finding new qualified and competitive suppliers, specialized in 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 effectively during supplier visits as well as during on-site audits with high potential suppliers. OptiBuy’s expertise and knowledge of the supplier market in CEE positively influenced the outcomes of this project.

Erik Frissen

Global Category Manager, GEA

Results

  • The result was top management increasing the number of GEA factories engaged in the project, from 5 to 13.
  • OptiBuy’s team identified almost 600 companies, based in Central and Eastern Europe.
  • That list was then shortlisted to 30 prospect suppliers, subsequently audited by joint team of OptiBuy and GEA experts.
  • Eventually, GEA was present- ed 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 in the nearest futuKörber strengthens strategic and operational procuremente.

See also

SECO/WARWICK
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TVN Discovery
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One of the most popular TV broadcasters in Poland, belonging to a leading media giant, offering high-quality entertainment programs and reliable news.
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