Once 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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Engineering as key for global value sourcing (GVS) and how to estimate the GVS potential
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 readingActive procurement role on driving big cost out projects
Supply 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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