Procurement Cost Optimisation in Vehicle Construction: Metz Aerials GmbH & Co. KG
Branch Special vehicle construction
Products Fully hydraulic turntable ladder from 18-53 m height, aerial platforms
Revenue £78 million (2014)
Staff 310 (2015)
Optimization measures, including:
- Tender notices and supplier days
- Workshops with existing suppliers to identify joint savings potentials
- Supplier changes in areas including machining, welded assemblies and GRP components.
Topics processed:
- Plastics, operating resources, C-parts, machining, sensors, hydraulics, transport costs, surfaces, electrics / electronics, drive technology, components
Initial situation:
The special vehicle manufacturer Metz Aerials in Karlsruhe, which has been in existence for over 150 years, produces turntable ladders and aerial work platforms for mobile fire protection and for emergency and disaster response services. Customers include professional, works, and volunteer fire brigades operating worldwide.
The high-altitude rescue vehicles stand out in the market for their highest quality and constant reliability, which is repeatedly proven in the most extreme situations. The products reliably perform their duty in icy temperatures in Siberia as well as in the extreme heat of the Arab world, enabling the rescue of thousands of people. The constant development of products and adaptation to changing customer requirements are characteristics of this globally recognised company within the Rosenbauer Group.
Goal achievement
Kloepfel Consulting was commissioned to critically review the purchasing conditions that had arisen from historically established supplier relationships and to establish new suppliers. Through targeted discussions with existing suppliers, the purchasing conditions were to be questioned in order to uncover hidden savings potential. The purchasing conditions could be significantly optimised by highlighting technically oversized product areas, which in turn led to cost reductions through the use of cheaper materials while maintaining the same quality. Further price reductions were also achieved through benchmarking with alternative suppliers and by demonstrating planned quantities.
In total, new suppliers from home and abroad were introduced across various product groups. These are now being progressively developed with the customer and are also making a significant contribution to improving results. The main challenges include the very high demands on the quality and approval of the materials to be procured, as they must withstand use in fire brigade emergency services for life-saving purposes for decades and under the most difficult conditions.
A particular feature of the project is the consistently very good and exemplary collaboration with all departments, such as development, manufacturing, and sales, as well as, in particular, the purchasing department of the Metz company.
