The customer
The client is a leading manufacturer of mechanical components for the automotive sector, with a workforce of over 250 employees and an international supplier network. Purchasing management is a strategic element to guarantee production continuity and optimise costs. The company has a portfolio of more than 1500 material codes between raw materials, standard components and customised parts, making supply management and alignment with production complex.
The customer’s need
The company was facing inefficiencies in purchasing management that negatively impacted production and competitiveness. Among the main problems were:
- High procurement times due to complex and non-standardised processes.
- Poor visibility of critical material stocks, with stock-out risks slowing down production.
- Accumulation of obsolete materials, resulting in running costs and unnecessarily occupied space.
- Accumulation of obsolete materials, resulting in running costs and unnecessarily occupied space.
- High variability in supplier performance, with delivery delays generating inefficiencies along the production chain.
- Complexity in the handling of purchase requests, with multiple approvals and bureaucratic processes slowing down decision-making.
Solution provided
Complexity in the handling of purchase requests, with multiple approvals and bureaucratic processes slowing down decision-making.
- Process Mapping: Using Value Stream Mapping (VSM), bottlenecks and non-value-added activities along the procurement flow were identified. This analysis highlighted critical areas such as order processing time, manual handling of purchase requests and lack of coordination with production.
- Implementation of the Kanban system for purchasing: A visual signal system made it possible to synchronise purchase requests with actual production consumption, reducing the accumulation of unnecessary stock and ensuring the continuous flow of essential materials.
- Reorganisation of supply categories: materials were classified according to rotation and criticality, adopting differentiated purchasing strategies for each group. For critical materials, framework contracts were established with selected suppliers to reduce variability in procurement times.
- Introduction of preferred suppliers: The selection of strategic partners has reduced delivery times and improved the reliability of supplies. Performance KPIs were introduced to evaluate and incentivise the best suppliers, ensuring high quality standards and on-time delivery.
- Automation of the reordering process: The integration of a digital system allowed real-time monitoring of stocks and automatic triggering of orders according to predefined thresholds. This eliminated manual intervention for many requests, reducing the risk of errors and improving efficiency.
- Optimisation of the purchase request management process: internal procedures for order approval were simplified, reducing the number of bureaucratic steps and speeding up the entire decision-making process.
- Staff training: buyers and production managers were trained in Lean principles to improve collaboration and demand management. The creation of multifunctional teams improved communication between purchasing, production and logistics, reducing the risk of incorrect or unnecessary purchases.
Benefits obtained
The introduction of Lean methodologies in procurement management has brought concrete results:
- Reduction of procurement lead time by 40 per cent by streamlining flows and eliminating redundant activities.
- Reduction of obsolete stocks by 50%, through better alignment between purchasing and production and more careful management of stock rotations.
- Reduction of the total value of inventories by 30%, with a positive impact on working capital and increased efficiency in the use of resources.
- Increased delivery reliability by 25% through the selection of strategic suppliers and the use of long-term contracts.
- Reduction of purchasing and handling waste by 20%, thanks to optimised material management and synchronisation with actual production needs.
- Increased productivity of the purchasing team by 35 per cent, through digitisation and automation of many repetitive tasks.
Conclusions
The adoption of a Lean approach has transformed the purchasing management process, making it more efficient, lean and responsive to production needs. Integration with lean manufacturing principles has improved the company’s competitiveness, reduced costs and improved customer service. Furthermore, the increased integration between suppliers and production has created a more resilient supply chain, capable of adapting quickly to changes in demand and the challenges of the global market.