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Saab: Take-off for new procurement
In 2004, Saab implemented an ambitious restructuring program to coordinate the Group’s support functions. At that time, this was one of the most extensive of its kind in Sweden. Purchasing was one of the first functions to come under the restructuring hammer. Three years later, Saab has achieved accumulated procurement savings of around SEK 600 million (EUR 66 million).
11/20/2007

After going through a radical transformation period during the Nineties – which included divesting Saab Automobile to GM, parting ways with truckmaker Scania and acquiring defence contractor Celsius – Saab decided to refine its operations to defence, aerospace and later Civil Security. Characterized by decentralization, in 2004 Saab realized it needed to centralize core support functions to improve efficiency and boost profitability. One of the first support functions to be modernized was indirect purchasing.

Huge changes were needed to implement a more centralized purchasing process. “The change was a necessity rather than a luxury,” says Magnus Strömer, Vice President Corporate Sourcing, who at that time was a Strategic Buyer. “Like many similar companies, we lacked a proper overview of purchasing and it was obvious that we were spending more money than necessary on indirect purchasing.”

Saab carried out a purchasing survey which showed that over 80 percent of the sourcing of indirect materials could be managed centrally. The study also revealed less favorable habits such as a low degree of automation in the procurement process, a significant amount of maverick buying, and few group-wide agreements. Even more worrying was the fact that indirect purchasing activities focused more on manual administration work than towards strategic sourcing. (long article continued in pdf format)

To read full article, download pdf here.

 

Buying as you sell
8/18/2010

At Prysmian, a world leader in the manufacture of high-tech cables for the energy and telecommunications industry, procurement is not for the faint-hearted. The raw materials that go into the manufacture of a high-voltage power transmission cable are subject to constant price fluctuations. From their Milan headquarters, purchasers must learn to live with volatility.

Performing under Pressure
6/23/2010

Relentless cost pressure is challenging the procurement function as never before. For Dr. Volker Pyrtek, CPO of telecoms giant Deutsche Telekom, the new status and scope of the profession has resulted in a place on the company’s executive operating board. But don’t expect procurement’s potential to be taken on faith, he warns, a reputation has to be earned.

Doing the deal in China
1/27/2010

Personal contacts and saving face are key to sealing the deal in China. Where Westerners tend to look for clear alternatives (option A instead of option B), the Chinese may examine ways to combine both options, writes Christopher Crosby in CNN Traveller.

Earlier
1/27/2010 Better plans for a (better) future
12/9/2009 Facilitating e-procurement
9/23/2009 The Lure of Purchasing
9/21/2009 Lessons from the downturn
7/23/2009 A new destination for procurement
6/23/2009 The supply chain elite gathers in Germany
4/6/2009 In-house or as a Service? – Challenging the role of the CIO
12/8/2008 Front line purchasing
12/5/2008 India for beginners
12/4/2008 Enabling technology - the right way
12/4/2008 Beware of the sales guy
5/26/2008 The mirror image of sales
5/26/2008 Dutch, Japanese or Yankee?
5/13/2008 Winning the Chinese over
5/13/2008 Purchasing salaries continue to climb
5/13/2008 Knowledge Process Outsourcing: Coming soon to an office close to you
4/21/2008 New book on procurement transformation
4/21/2008 Enterprises exposed to supply risk
4/21/2008 Asian salaries rising sharply
1/15/2008 CPOs lack resources to tackle change
1/15/2008 Complex supply chains at risk
12/20/2007 Asian economies smaller than previously estimated
12/11/2007 Beware new global challengers
12/5/2007 European benchmark on responsible sourcing
11/21/2007 European enterprises: room for improvement in e-procurement
11/20/2007 Business embraces green procurement
11/20/2007 Eco-management delivers
11/20/2007 Public sector: Getting real about e-procurement
11/20/2007 Greening your supply chain
11/20/2007 Saab: Take-off for new procurement
11/20/2007 Sourcing successfully from China
11/20/2007 Wiggling your way into first class
11/20/2007 How to gain respect
11/13/2007 GE: Speaking with one voice
10/26/2007 BP:Bridging the skills gap
    
 
 
 
 
Upcoming events
2 - 5 November, 2010
Brussels, Belgium
ProcureCon 2010, the 13th annual procurement conference, will provide you with new procurement best practices, new ways of looking at old problems, and an understanding of the skills needed to develop your ideas into realistic, achievable plans. For more information click here.