The list of good reasons for global sourcing is long: low prices, adaptable suppliers, and the development of new markets. Standard and spare parts, in particular, can be produced abroad economically and to a high standard. Buyers who are faced daily with sourcing the best goods at the cheapest prices are therefore increasingly relying on global sourcing. For example, more than half of German companies buy from China. However, the quality demands of German-speaking SMEs often stand in the way of some business deals. Constant risk management, prevention of know-how drain, quality management, and stringent supplier development are therefore important. Annoyances can also be avoided by a deeper understanding of culture. If this is mastered, purchased parts such as cast or forged parts, as well as manually manufactured engines, can be ordered on favourable terms.

An ABC/XYZ analysis is helpful in analysing the extent of excessive stock levels. If this is supplemented by the inventory ranges and the distribution of inventory values, the complexity of the C-parts is reduced and targeted expertise is built up in replenishment, buyers can take a deep breath. Long-term and sustainable inventory optimisation requires process optimisation along the entire value chain. The topics of the specialist departments are then e.g.: product life cycle, inventory responsibility, target ranges, C-parts management, process costs, Kanban, framework agreements, mechanisms for inbound and outbound control, standardisation in design, optimum product mix taking into account production capacities, set-up costs and internal logistics. When all departments are integrated into this process and have internalised their contribution to success, this paves the way for sustainable optimisation of inventories.

Cost optimisation

Reduction of purchasing costs

Savings in procurement of 5% to 15%

Are you looking for a procurement expert who not only identifies potential but also sustainably implements it together with your employees and suppliers? We have industry experience, are pragmatic and down-to-earth. Our remuneration is 100%% based on success achieved, meaning: no savings – no fee. Over 1,000 clients from more than 2,000 projects have already benefited from our entrepreneurial and collaborative approach.

Sustainable reduction of all direct material costs

In times of constantly rising raw material prices, reducing material costs is becoming increasingly important in order to increase one's own performance and competitiveness. Direct material costs represent the largest cost factor in the manufacturing industry. For example, by reducing scrap and offcuts, greater material efficiency can be achieved. The standardisation of products, in turn, helps to reduce the variety of articles or suppliers. Manufacturing companies often lack the capacity to uncover further savings opportunities beyond their day-to-day business. Our consultants work on complex issues using value analysis approaches and employ real controlling to ensure sustainable savings in material costs.

Sustainable reduction of all indirect costs (including material and overhead costs)

Because overhead costs (e.g. energy, insurance, cleaning services, security, marketing) are often insufficiently considered, there are significant savings potential in this area. Purchasing departments are usually so heavily committed to centrally procured goods that overhead costs remain unchecked. In some companies, they are not even managed by purchasing but are handled by other departments (accounting, dispatch, assistants, etc.).

This often leads to contract extensions without the terms being reviewed and negotiated. By using the necessary procurement tools based on a transparent analysis and selecting the right partners, savings in the double-digit percentage range can be achieved.

No savings, no fee

Our remuneration is 100%% based on the success achieved, meaning no savings – no fee.

Improvement of payment terms

Optimisations in conditions management are capable of providing free liquidity in a timely manner. Kloepfel Consulting employs specially trained staff in the conditions management department for this area.

Cost structure analyses and supplier workshops

Many purchasers often lack knowledge of their suppliers' cost structures. A transparent supplier cost structure is the best defence against price increase demands. Through accurate analysis of price increase requests and purchasing prices, a basis can be created for successful negotiations and improved processes at the supplier. This requires figures and facts, which no supplier willingly discloses. Kloepfel Consulting solves this with the five-time award-winning software, Cost Control. This software includes all available manufacturing modules and is specifically tailored to the needs of a manufacturing company. The Cost Control tool thus represents a valuable system for the exact and comprehensive analysis of any manufacturing costs.

Further costs can be revealed through so-called supplier workshops. The workshop is conducted with close involvement of the suppliers, to identify and realise cost potentials, thereby strengthening renegotiations.

Would you like to reduce your procurement costs or do you have other questions about KLOEPFEL Consulting?

Global Procurement

The list of good reasons for global sourcing is long: low prices, adaptable suppliers, and the development of new markets. Standard and spare parts in particular can be produced abroad cheaply and to a high standard. Buyers who are faced with sourcing the best goods at the cheapest prices every day are therefore increasingly relying on global sourcing. For example, more than half of all German companies purchase from China.

However, the quality standards of German-speaking medium-sized companies can often stand in the way of some business. Continuous risk management, prevention of know-how drain, quality management, and stringent supplier development are therefore important. Annoyances can also be avoided through a deeper understanding of culture. If this is mastered, it is possible, for example, to order purchased parts such as cast or forged parts, as well as manually manufactured engines, on favourable terms.

Formation of purchasing consortia

Collective purchasing can secure price advantages and discounts. The interconnectedness of companies through goods management systems and the exchange of experience serves as an early warning system to reduce decision-making risks. Purchasing communities can be used for economisation in central company areas such as purchasing, marketing, human resources, financing, and legal departments.

Delivery time optimisation

The longer the interval between material deliveries, the more precise the planning has to be. The batch sizes that are purchased to ensure supply are correspondingly higher. On the one hand, volume bundling results in greater discounts, but on the other hand it also means a lower stock turnover rate. This in turn goes hand in hand with the costs associated with tied-up capital. A restricted cash flow is not desirable. If a supplier is cheap but only delivers at long intervals, this means limited flexibility overall. If there is an increase in product demand between two deliveries, resulting in unexpected production peaks, these can only be absorbed if a dual sourcing solution has been developed. However, the risk of cancellation and possible delays in customer service represent an additional cost factor that must be included in the assessment. The consultants at Kloepfel Consulting have sufficient expertise and a strong network in markets to optimise and eliminate deficits in supply chains.

File optimisation

To analyse the extent of excessive inventory levels, an ABC/XYZ analysis is helpful. If this is supplemented by inventory ranges and the distribution of inventory values, the complexity of C-parts is reduced and expertise in planning is specifically built up, buyers can finally breathe a sigh of relief. The slow-moving items can usually be identified quickly.
Long-term and sustainable inventory optimisation requires process optimisation along the entire value chain. The topics for the specialist departments are then, for example:

Product life cycle,
File responsibility,
Target ranges,
C-parts management,
Legal costs,
Kanban,
Framework agreements,
Mechanisms for inlet and outlet control,
Standardisation in construction,
optimal product mix considering manufacturing capacities,
Assembly costs and
Internal logistics.

When all departments are integrated into this process and have internalised their contribution to success, this paves the way for sustainable optimisation of inventory levels.

Further services relating to
Cost optimisation

Freight cost optimisation

We reduce your freight costs to 100% on a success basis. Tailored logistics and freight cost optimisation with consistent or increased quality for greater cost transparency.

Indirect purchasing

We show you the optimisation potential in indirect procurement at a glance, uncover hidden costs and convert them into savings potential.

IT Procurement

We optimise your IT procurement with bespoke purchasing strategies and achieve average savings of 10%in our customer projects.