Procurement management coordinates the supply of all the goods and services required by the company. This involves the targeted planning, analysis and monitoring of all procurement objects and processes. In addition to quality and cost control, the management of all supplier relationships is also part of procurement management.
The importance of procurement management should not be underestimated. Through efficient procurement processes and long-term supplier relationships, cost optimisation and attractive conditions can be achieved, making a valuable contribution to value creation right from the start of the supply chain.
Procurement management plays a particularly important role in the area of C-parts procurement, as these represent a very high purchase volume for a relatively low value. There is therefore considerable potential for savings in the procurement of auxiliary and operating materials. Especially in the case of standardised C-parts, the use of e-procurement solutions can can lead to significant cost savings.
Operational vs. strategic procurement
In procurement management, a distinction is made between operational and strategic procurement. The tasks involved in operational procurement management, such as determining requirements, order processing, supplier management or controlling, are designed to ensure that materials are supplied to production in line with requirements. Strategic procurement management, on the other hand, deals with the selection of suppliers and partners, defines the framework conditions and thus lays the foundations for operational procurement. Ongoing evaluation and reassessment of existing procurement processes and supplier relationships is essential to realise long-term procurement potential.
Objectives of strategic procurement management
The primary objective of procurement management is to ensure the long-term supply of external resources to the company in line with demand at the lowest possible cost. Procurement should therefore be organised as effectively and, above all, as efficiently as possible.
This objective can essentially be broken down into the following individual objectives:
- Reduction of process costs
- High security of supply
- Reduction of procurement item costs
- Harmonisation of the product portfolio
- Quality reliability of the procured goods
- High delivery reliability
- Increase in delivery flexibility
- Optimisation of logistics processes
Procurement management at AWI
We see procurement as a value-added process and want to support our customers in unlocking and securing the potential for success in this process. We have decades of experience and a broad network of partners, especially in the area of C-parts management.
We work together with our customers to achieve their strategic procurement management objectives, while remaining flexible to individual requirements and keeping an eye on efficiency. By outsourcing your procurement management to AWI, you also benefit from economies of scale. By purchasing large quantities of C-parts for more than one customer, AWI is able to obtain better prices, which we pass on to our customers.
