Three Case Studies
With savings of 7.3 million euros and a savings rate of 21.8 percent, KLOEPFEL Consulting demonstrated the enormous potential of Technical Sourcing in 2024. This was achieved while maintaining or even improving quality.
The successes span across various industries such as construction supplies, automotive, household appliances, aerospace, and mechanical engineering. Three impressive case studies illustrate the effectiveness of the applied methods:
Case Study: Technical Sourcing for a Global Leader in Measurement and Control Technology
Initial Situation
The company manufactures high-precision measuring instruments for various industrial applications. A key component of these products are recurring mechanically processed parts. Due to rising costs and a lack of profitability in in-house production, the company sought to strategically relocate production.
Objective
- Cost optimization for recurring mechanically processed parts
- Reduction of in-house production through targeted outsourcing
- Establishment of alternative suppliers
- Ensuring supply chain security
Methodology
- Analysis of Initial Situation
- Identification of recurring parts through ABC/XYZ analysis.
- Consolidation of Part Variety
- Consolidation of part variety through family grouping of parts, which is a prerequisite for an efficient and effective tender process.
- Supplier Research and Qualification
- Use of the KLOEPFEL supplier database to identify suitable partners with technical expertise.
- Qualification of new suppliers, sampling/testing, and support during the transition.
Particularity: Technical Sourcing
In addition to conventional generic sourcing, a focused approach to technical sourcing was applied: “The right part for the right machine” – through deeper technical understanding and precise alignment between requirements and manufacturing capabilities of suppliers.
Results
- 61% cost savings on selected parts
- Increased supply security through the establishment of a reliable supplier network
- Internal production capacities freed up for higher-value core competencies
Case Study: Technical Sourcing for an International Foam Manufacturer
Initial Situation
The client is a globally operating company with production sites in Europe and the USA. It develops and manufactures high-quality products and system solutions for safety and foam technology as well as technical molded parts
During the project, the following challenges arose:
- Supply shortages with the previous main supplier
- Internal capacity shortages for researching alternatives
- High product requirements, which greatly limited the number of suitable suppliers
Objective
- Identification of suitable alternative suppliers in the target markets: Europe, Asia, North America, and Africa
- Securing the supply chain while maintaining product quality
Methodology
- Product Analysis
- Detailed investigation of the manufacturing process
- Definition of all technical and qualitative requirements as the basis for supplier research
- Global Supplier Research
- Global identification of potential manufacturers based on insights from the product analysis
- Technical Prequalification
- Evaluation and technical pre-assessment of 132 alternative suppliers
- Reduction to 26 potential suppliers through prequalification
- Selection of 2 suitable suppliers whose products met the requirements and could be approved for serial production
Results
| Approach | Effort | Result |
| Client’s Standard Procedure | 8 months | No suitable supplier |
| KLOEPFEL Methodology | 2 months | 2 qualified suppliers, free samples, savings over 8% |
Case Study: Technical Sourcing for a Global Leader in Special Machine Technologies
Initial Situation
The client is a world-leading provider of special machine solutions. A central component of these machines are geared motors for dosing chemical substances, which had been sourced exclusively from a single supplier for decades.
Despite the close partnership, there were regular, non-negotiable price increases. The dependency on the monopolistic supplier led to a rising cost burden without strategic flexibility.
Objective
- Cost optimization of geared motors
- Reduction of the single-source situation
- Establishment of a qualified alternative supplier (second source)
Methodology
- Cost Structure Analysis
- Conducting a technical and economic analysis to determine the target price
- Technical Tendering
- Preparation of specifications, product, and function descriptions for the tender process
- Global Supplier Research
- Identification of potential manufacturers worldwide based on the requirements profile
- Use of KLOEPFEL’s international networks and databases
- Qualification and Implementation
- Prequalification and technical assessment of suitable suppliers
- Sampling and testing of new suppliers
- Support in transitioning and integrating the second source into the supply chain
Results
- Successful establishment of a second supplier
- Cost savings of over 657,000 euros for 12 months
- Reduction of dependency on a single supplier
- Strengthened negotiation power and supply chain security
Contact:
Kloepfel Group
Damir Berberovic
Tel.: 0211 941 984 33 | Mail: rendite@kloepfel-consulting.com