We’re now working on procurement-engineering.com more than one year. Looking back and reviewing everything shows that we really have put together a nice overview of the most important things in Procurement Engineering. You will not find a better crisp overview. See and find out …
Procurement Engineeing is well connected with Cost and Value Engineering. Many Posts deal with the interface between CVE and PE:
Cost Engineer vs. Procurement Engineer Link
Continue readingOnce in a live most of the car owners need to buy wheels for his car. The question is: Which price is reasonable for the product? Which kind of wheels to choose? In this article you will find answers on that question. Additionally, you get an overview about a cost structure of an aluminum casting product using bottom up cost calculation method. We think it’s a perfect example to show how cost value engineering contributes to the company’s success and could also help you in your private life.
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We talk about “Design to Value” and “Design to Cost” how to run related projects, but before we start to talk about the methods how to lever “Design to Value” (DtV) we have to understand what “Design to Value” means. Basically, DtV means a design approach for new products or systems where the maximization of the value for the customer is the determinant target. In a broader sense, DtV extends the Design to Cost approach by further methods and approaches. Every design feature or design concept is therefore measured whether or how much value it creates for the customer or not.
Continue readingGlobal sourcing & Regional procurement hub
Global sourcing, as a big lever to reduce product cost, plays a critical role for a company, especially for multinational corporation’s (MNCs). Herewith regional procurement hub is one key organization set up in this aspect. To support on regular daily sourcing activities and benefit from cost is the key responsibility, like supplier negotiation, quality control, expediting, coordination. Does that mean everything for a regional procurement hub? What’s more regional hub could contribute, and how the future organization to adapt the business demand? Continue reading
Globalization is one of the „current“ mega trends. This means for you as a procurement guy that one of the biggest levers for cost reduction is „global value sourcing“, which does not mean anything else than that you select the most competitive supplier from all over the world and you don’t limit yourself to a certain region. In the following article we will deal with the questions how to identify the right components and services for global value sourcing and how engineering can help you in procurement to get the most out of global value sourcing.
Continue readingSupply chain management (SCM) has developed and changed so quickly to meet new business mode and market requirements today. Procurement as one of most important element in SCM is also undergoing significant change, which in sequence impacts its role and responsibility in whole organization. What’s new from procurement to bring bigger impact on business is really an interesting topic worth to understand and explore. This post to explain how procurement acts as a more active role and brings impact in one localization (cost out) project based on author’s experience. In here, Procurement engineer plays the interface/lead role from procurement organization.
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