Project goals exceeded despite Corona
In this interview, Andreas Riem, managing partner of Hengstler Zylinder GmbH, talks about the recent purchasing optimization project. In this project, the savings targets set during the potential analysis were exceeded. Mr. Riem also describes the corona-related focus on digital communication solutions. At the same time, he explains how the change from initial skepticism to great satisfaction among employees and suppliers was accomplished.
What was the focus of the joint project with Kloepfel Consulting?
The focus was on cost optimization around purchasing. Here it was not only about price reduction, but about holistic cost reduction. Thus, the project covered both external processes, i.e. those between the company and suppliers, and internal purchasing processes.
Was a potential analysis carried out beforehand?
Yes, the current purchasing data was broken down into different product groups and analyzed. This resulted in one optimization lever per commodity group (only one?). It was also used to define project goals, which were exceeded by the end of the project.
What were the biggest challenges of the project, also due to the current Corona pandemic?
Simultaneously with the start of the project, the first Corona constraints occurred. For example, due to the personal contact restrictions, Kloepfel’s consultants could not be on site at Hengstler as originally planned. Accordingly, the biggest challenge for the consultants was maintaining communication with Hengstler. This also refers to the discussions with the suppliers, because negotiations with them could not be conducted in person on site either.
These communication processes all had to be organized digitally in one fell swoop. Kloepfel’s consultants mastered this brilliantly.
One of the company-specific challenges is certainly that a company like Hengstler Zylinder GmbH must first be understood by an external consultant. After all, Hengstler Zylinder GmbH is a company that does not mass-produce one and the same product. Individual product groups must be meticulously understood in order to adapt purchasing strategies. This understanding, which the consultants from Kloepfel fortunately brought with them, is not a matter of course with external consultants.
The trend is toward digitization. This trend seems to be gaining even more importance in times of Corona. What is the situation at Hengstler Zylinder GmbH?
As already briefly described, Hengstler’s communication processes were successfully converted in a very short time. This meant that meetings could be held very quickly using programs such as MS Teams. This changeover to digital communication processes was well and actively accepted and participated in by all employees.
When it came to communicating with outsiders, such as suppliers, it was not initially clear how well they were digitally positioned. Do they have a webcam, a functioning microphone and knowledge of the software? There are always a few things that need to be agreed upon.
Were the employees skeptical or rather open-minded at the beginning of the project? And how do things look now?
At Hengstler, before the project began, they were skeptical for a short time about how the Kloepfel consultants would deal with the suppliers. However, this skepticism dissipated very quickly.
One of the initial concerns was that the Kloepfel team might strain relations with our existing suppliers by negotiating too hard. But the Kloepfel consultants found a very good way. They dealt with the inventory suppliers in an extremely professional and respectful manner. As a result, the initial concerns were overcome shortly after the start.
By the way, this good way of communication by the Kloepfel consultants led to the fact that contacts to the existing suppliers could be kept as well as new connections to alternative suppliers could be established.
What is the conclusion of the project?
Very briefly: The target according to the potential analysis was exceeded. The greatest savings were achieved in the direct purchasing area in the commodity groups raw materials, drawing parts and technical trade.
All in all, we can draw a thoroughly positive conclusion.
What is the longer-term vision for purchasing?
It remains important to build sustainable supplier relationships and maintain strategic partnerships.
As far as digitization is concerned, it is certainly a good idea to exploit the positive effects that became apparent during the Corona period in the long term. Thus, it is to be seen to what extent digital communication will continue to be maintained.
Hengstler Zylinder GmbH
Hengstler Zylinder GmbH is a manufacturer of customized hydraulic cylinders for construction machinery, cranes, handling excavators and special applications. The company was founded in 1937. The product spectrum ranges from luffing cylinders to lifting and jacking cylinders to support and counterweight cylinders, also in particularly large designs.
Pressekontakt
Christian Fischer
Kloepfel Group
Presse- und Öffentlichkeitsarbeit
M: +49 152 / 227 227 50
c.fischer@kloepfel-services.com
www.kloepfel-group.com