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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

Speak to an expert

Working with the most qualified Tsetinis Consultants is key to your success.

 

Speak with an expert in your industry who can help you move your company toward your specific goals. We implement our expertise in a very specific and targeted way and tailor the choice of methods to your individual requirements. In this way, we can ensure your long-term success.

 

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Martin Kruschel

Partner

Materials Management

Product Profitability Programs

Restructuring & Organizational


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Dr. Kenneth Sievers

Senior Principal

Materials Management

Post Merger Integration Programs

Profitability Programs


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