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A case study of procurement management for a new manufacturing center in a private manufacturing company in Anhui Province
Client Enterprise: Anhui Auto Parts Co., Ltd.
Main business: Processing and manufacturing of key automotive parts
Project scope: precision machining center
Target: 38 new precision machining centers
Project Initial Situation SITUATION
Potential customer needs of client companies
Customer enterprise capacity planning
Customer Product Category
Customers provided 5 internationally renowned machining center brands
Purchase budget
…
Consulting tasks TASK
The selected machining center has a variety of flexible processing capabilities;
Cannot exceed established budget;
Equipment indicators are not lower than the international average level [eg, OEE is not lower than 85%];
Provide necessary technical operations and maintenance;
Delivery time: start to deliver in batches within 3 months;
After-sales service: response time is within 48 hours;
…
ACTION / SOLUTION
Hay Think led the project procurement team within the client company;
Hay Think provided three other internationally renowned machining center manufacturers to participate in the bidding based on rich industry experience;
Guide customers to compile purchasing technical specifications according to specific technical specifications templates of machining centers;
Neutralize technical requirements, and try to avoid certain special thresholds to exclude other competitive participation;
Hay Think composes a structured inquiry list and compiles all customer requirements into inquiry requirements;
Require all machining center manufacturers to provide TCO calculation process;
Require all manufacturers to provide after-sales service charging standards and response speed;
Includes the brand, model, delivery cycle and corresponding price of all key parts and wearing parts;
After-sales labor price
Response time for fault type
…
Set the consumption CAP of spare parts and consumables within 3 years after installation and acceptance of the equipment;
After receiving the manufacturer's quotation plan, visit the customer's site to analyze the accuracy and authenticity of the data;
Preparation and implementation of strategic procurement negotiations;
Matrix supplier evaluation and selection based on supplier inspection reports and supplier quotation plans and the results of strategic procurement negotiations [based on equipment lifecycle TCO]
Signing of strategic procurement contracts [including QAA …];
TCO protocol of equipment;
Equipment pre-acceptance;
Equipment installation and commissioning specifications;
Consumption tracking of equipment spare parts and wearing parts;
Equipment performance index recording and tracking;
TCO data record of equipment;
Supplier key performance assessment;
…
Project Results
The actual equipment purchase amount is 20% lower than other customers on average
Defined TCO and signed TCO agreement, the total equipment life cycle cost is about 30% lower than the industry average;
The manufacturer's inventory of spare parts of the equipment is borne by the manufacturer, which greatly shortens the procurement cycle of spare parts and reduces the risk of shutdown;
The cost of after-sales service is about 50% lower than other customers, and the delivery and cost are completely controllable;
The OEE of the equipment is higher than the industry average;
The manufacturer's drawings were obtained for conventional parts;
The machining center chooses Germany's world-renowned brands, which is flexible and highly automated, and has greatly improved efficiency;
The product has high precision, high consistency of quality stability, and greatly reduces the cost of quality failure;
Hay Think's advanced procurement management consulting services are creating value for many companies …