Sourcing and purchasing has developed from a transaction-oriented organization focused on the integration of quality, production and logistics into procurement excellence with management of external value add and innovation. As a result thereof, demands in the market steadily rose. Besides the ever increasing number of new suppliers through “global sourcing”, many new niche players have also been able to establish themselves in the market who are nowadays generally recognized as specialists. The specifications and technical requirements for purchased parts through production and development of the OEMs are becoming ever more complex. This rise in requirements substantially increases the pressure on suppliers. Besides numerous cost saving programs in purchasing, many OEMs have simultaneously and continuously improved their organizations and processes. Vendor Managed Inventory, Just-in-Time/Just-in-Sequence concepts and the reduction of stock levels additionally increase the pressure on suppliers. Even the smallest disturbance of the system can have significant impacts on suppliers and OEMs.

Modern Just-in-Time and Just-in-Sequence supply systems

A high degree of complexity and planning results from the multitude of material parameters caused especially by the bandwidth of sourced/purchased goods and global transactions. Supply chains and material planning must be upgraded with modern Just-in-Time and Just-in-Sequence supply system. Logistical standards must be agreed upon with suppliers and must be monitored, for instance risk sharing, volume flexibility, joint planning and forecasting or simply the adherence to delivery targets and fulfillment of contract penalties.

Barkawi Management Consultants supports companies with the optimization of sourcing processes as well as strategic and operational purchasing. The most important levers are derived from the analysis of the material planning and purchasing strategies, consistent guidelines for the maintenance of master data, the clear establishment of responsibilities and data ownership , clear standards for suppliers, the right IT-tools as well as a differentiated inbound supply systems, such as Vendor-Managed-Inventory, JIT/JIS or Milk Run supply models based on an optimal network design.

Barkawi services:

• Process and organizational design in procurement
• Design and implementation of collaborative inbound supply models (iHUBs, JIT/JIS, VMI)
• Target costing for cost reduction
• Procurement market analysis
• Requests for Quotation (RFQ)/contracting
• Total cost of ownership
• Procurement handbooks
• Procurement controlling and monitoring
• Lean procurement