Agile Transformation of an OEM’s Purchasing Department

Case Study

Disruptive developments in the automotive market will significantly change the role of OEM’s in the next decade. Especially, the next shift to mobility as a service will inevitably force manufacturers to compete on multiple fronts. Traditional car manufacturers and suppliers will be under continuous and increasing pressure to reduce costs and become more efficient on their supply side.

Task was to increase purchasing efficiency short term

Disruptive market changes required a fundamental adoption in the organization of work, processes, and structures to match future requirements in purchasing, now! But lack of attractive prices, systemic and structural problems jeopardized the overall competitiveness. Organizational complexity and a lack of sustainable operating models were further characteristics of the current state.

The Lean-Agile Enterprise and its Target Operating Model

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The biggest challenge for the department was to successfully shape the transformation

Higher efficiency to achieve planned HR costs
Sustainably improve processes and structures to master future requirements
Develop and initiate a strategic concept including the key initiatives to kick-off the transformation of the purchasing department 2025

Six action fields to structure the implementation of the TOM

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Hybrid-organization balances objectives to holistically improve organizational performance

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How we established a new way of working

The project identified and developed three strategic work models:

Transparency on strategical challenges
Purchasing performance benchmarking and current position determined
“Target Operating Models” with three working models created: Speed - Efficiency - Agility
Role models for each key initiative defined and implemented
Agile working principles and cultural change initiated

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The client benefits were significant:

Overall HR cost target over-fulfilled by more than 30 percent
Three strategic work models and more than 30 key activities successfully implemented
Agile principles integrated in purchasing and organizational transformation successfully launched

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