The document summarizes a procurement improvement program for an industry leader in cargo handling equipment with 6 locations in the Netherlands. The project targeted strong improvements to processes, major cost reductions, and immediate effects with a payback period of less than 3 months. Using a pragmatic, category-based and gradual expansion approach, the program achieved savings of 40-35% in initial project categories like car leasing and facilities through procurement audits, improvement projects in spending categories, and expanding efforts to core spending areas and international locations.

1. Procurement improvement program for
Industry leader in cargo
handling equipment

2. Situation
6 locations in Netherlands
Integration of 3 companies running
Feeble profitability
New management
SAP-implementation on hand
International subsidiaries
Project targets
Strong improvement on processes
Major cost reduction
Immediate effect, payback < 3 months.

3. Approach
Pragmatic, category-based, gradual expansion
Steps:
1. Procurement-audit
2. Improvement project per category
• Carlease, facilities, temp officelabor, insurance, workwear
3. Maintain and improve further
• Vendor- & demand management
4. Expansion to core spend
• Spare parts, technical flexworkers
5. International expansion
• Starting in Germany

4. Achievements
Savings on 1st projects Quality
Training ‘on the go’ making
40% employees ‘procurement-
35% minded’ and cost-aware
30%
25% Strong improvement on
Carlease
20% operational processes
Flexwork
15%
Office Supplies
10% Implementation of ‘demand
5% management’ tools
0%
2012 2013 2015 Strong improvement on
supplier performance (KPI’s)
ROI 4,1 (payback < 3 months) made possible
Constant vendor- and demand
management to cash these
improvements

5. xentys
Leads you beyond procurement
by realization of
cost reductions
improved supplier performance
optimized internal demand
by implementation of
demand management
vendor management
and by strong improvement on
operational processes
cost awareness and ‘procurement mindedness’ in the
organization
5