Mechanical engineering purchasing optimization: Gallus Ferd. Rüesch AG
Industry: Mechanical engineering
Turnover: EUR 140 million
Number of employees: 450 employees
Products: Label printing and folding carton printing machines
Urs Akermann, Head of Supply and Logistics at Gallus Ferd. Rüesch AG in St. Gallen and responsible for the labels division, reports on his experiences with the purchasing consultancy Kloepfel Consulting.
Were you skeptical or rather open-minded at the start of the project?
Urs Akermann: At the beginning, the procurement team was rather skeptical about the project. The basic attitude was that good work had been done so far and that everything would now be called into question with this project. However, this skepticism quickly disappeared, not least because the experience and expertise of the Kloepfel team was received very positively. The fact that we embarked on the project with Kloepfel is largely due to the approach "the customer only pays if there is success". This approach convinced Gallus.
What were the biggest challenges at the start of the project?
Urs Akermann: There were two major challenges: One human and one professional. On the one hand, all employees had to develop a positive attitude towards the project so that they were fully committed. Thanks to open and honest communication and the active involvement of all procurement employees, this was achieved without any problems. It quickly became clear to the employees that they would not be scrutinized or criticized, but rather strengthened through, for example, learning by doing in day-to-day business. It was important that successes could be realized quickly. On the other hand, all the data had to be prepared. This was a lot of work, but also an essential prerequisite for moving the project forward and ultimately being able to measure its success.
To what extent has the optimization project had an impact on your security of supply and the quality of your products?
Urs Akermann: Above all, it was important that the focus was not simply on price reductions, but that the suppliers were supported by, for example, more optimized logistics approaches, guaranteed purchase quantities and batch sizes etc. In the course of the project, there were changes of suppliers, some of whom had been with us for many years. The learning curve for the new suppliers was bridged by the previous supplier continuing to supply parts during this transition phase. In this way, deliveries of poor quality or late deliveries were largely compensated for.
To what extent has the optimization had a lasting effect on your day-to-day business?
Urs Akermann: In the course of the project work, we discovered that we need to align the procurement organization even better with the partially changed challenges. It is important for Gallus that the savings achieved are sustainable. We can ensure this with the adapted organization.
How would you describe the way the Kloepfel project team works?
Urs Akermann: Competent and goal-oriented. The way we worked together is also very positive. Working together on the various tasks meant that inputs from the procurement team were seen as opportunities and were also used. Some suppliers first had to get used to seeing new Kloepfel faces at the negotiating table alongside the familiar contacts from your company.
Some suppliers first had to get used to seeing new Kloepfel faces at the negotiating table alongside the familiar contacts from your company. How did you experience these situations and what were the reactions of the suppliers?
Urs Akermann: The suppliers were informed in advance, but some of them were skeptical and reserved. The Kloepfel team approached the suppliers very openly and quickly created a constructive basis for discussion. It was made clear to the suppliers where they stood and what measures we could take to achieve our goal. It was important to create a win-win situation.
What is your conclusion after the end of the project?
Urs Akermann: The project was very successful - the targets set were achieved. The internal effort required should not be underestimated. Developing the database in particular was very time-consuming. During the course of the project, we had transparency at all times about the results already achieved and the contributions still to be expected. Kloepfel set the savings potential higher than was ultimately achieved. The reasons for this are complex. Basically, employees' awareness of cost-optimized purchasing was heightened. Finally, I would like to emphasize that only an economically sound supplier can be a reliable business partner.
Thank you very much for the interview!
