Monthly Archives: November 2018

When is the right time to involve Procurement in the R&D Process?

If someone is asked when certain organizations shall be involved in a new project, normally the standard answer is “as early as possible”? But  why? Parts are procured once they are designed and not earlier. So why should there be an additional interface in the R&D organization, which makes the whole development process more complex, time consuming, and in certain cases more difficult for the designer ;-)? 

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What is Procurement Engineering?


If you search the web for “Procurement Engineering” you will find different job descriptions on websites like Stepstone or Monster but no further information about that function in procurement or engineering organizations around the globe. This is somehow surprising has the need for systematic involvement of procurement and supply chain management in the early phase of product development is emerging and gets more and more relevance. There is hardly no procurement conference where this topic is not on the agenda.  

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Procurement engineering: Wise design via global suppliers involvement

It’s an unreachable target that request a design engineer today to have all aspects knowledge to develop a fancy product under age of knowledge explosion. Technology and science has developping so quickly and unevenly in all corners of the world. New material, novel manufacture methods, innovative processes are poping up everyday and everywhere. How to design a product not only meet functional requirements but also cost effective and manufacturefriendly is really an insteresting topic but also challenge, especially under today’s tough business situation and complex global business enviroment. Obviously, procurement engineering could provide one of the answer on this aspect through early global suppliers involvement.

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Procurement Engineering from supplier point of view

First guess probably everyone has when he think about procurement engineering is cost saving for OEM/customer. Sure, this is not the only value for the customer there are some more. But one advantage might not be present immediately. The benefit for the supplier!

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Cost Engineer vs. Procurement Engineer

In the course of my different positions within procurement pretty often people asked what is actually the difference between a Procurement Engineer and a Cost (Value) Engineer. Why Value in brackets? Cost Engineer is more common, but in some organizations the position of a Cost Engineer is also designated as Cost Value Engineer. Where does the confusion come from?

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