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Standardization: definition & important aspects for buyers

As a key lever, standardization creates efficiency and cost savings through uniform processes, specifications and interfaces in companies. The following overview shows how systematic standardization can reduce complexity and generate measurable added value for the company.

Standardization in a nutshell:

Standardization describes the systematic standardization of products, processes and specifications according to defined rules and norms. For purchasing, this enables a reduction in the number of variants, simplified procurement processes and improved negotiating positions thanks to greater bundling of requirements.

Example: By standardizing its screw types, an automotive supplier reduces the number of variants from 200 to 50 types, which leads to a 23% reduction in procurement costs and reduces annual storage costs by EUR 45,000.

Contents

Standardization is a fundamental process in modern business and industry that aims to establish uniform norms, rules and procedures. It plays a central role in the optimization of work processes, quality assurance and international cooperation. The introduction of standards simplifies processes, reduces costs and ensures compatibility between different systems and products. In this introduction, we will highlight the most important aspects of standardization, explain its significance for companies and organizations and discuss current developments and challenges in this area.

What is standardization?

Standardization refers to the process of standardizing products, services, processes or methods based on defined norms and specifications. In purchasing, this means that similar materials or services are procured according to uniform criteria. The aim is to increase process optimization in purchasing, reduce costs and guarantee quality standards.

Core elements of standardization

  • Standards and specifications: Definition of binding standards for products and processes
  • Process standardization: Standardized processes to optimize efficiency and quality
  • Quality management: consistent compliance with quality criteria through fixed standards
  • Reduction in the number of variants: minimization of different product and service variants
  • Importance of standardization in purchasing

    In procurement management, standardization plays a central role in cost efficiency and process optimization. Uniform standards allow purchasing volumes to be bundled, volume discounts to be used and supplier relationship management to be consolidated. It also makes it easier to compare offers and promotes consistent product and service quality.

  • Cost efficiency: savings through volume bundling and reduced warehousing
  • Process optimization: Simplified procurement processes and faster decision-making
  • Improved quality: Ensuring uniform quality standards across all suppliers
  • Scalability: Easier adaptation to market changes thanks to standardized processes
  • Guide: Best practices for successful standardization in your company

    Standardization: From individual solutions to digital uniformity

    Standardization has become an essential factor for increasing efficiency and reducing costs in purchasing controlling. Building on the theoretical foundation of standardizing processes, products and services, practical implementation is becoming increasingly important. Companies are faced with the challenge of dealing with increasing complexity and individual customer requirements. The transition from individual, fragmented solutions to standardized processes is necessary in order to optimize the value chain and achieve sustainable competitive advantages.

    Old: Individual procurement without standards

    Traditional approach: In traditional procurement logistics, products and services were often purchased without uniform specifications and standards. Each department or business unit acted autonomously, which led to a variety of different processes and supplier relationships. Manual ordering processes, paper-based documentation and personal agreements dominated everyday life. This fragmentation led to inconsistent quality standards, increased process costs and a lack of transparency. The lack of bundling of requirements prevented economies of scale, and the variety of suppliers made management more difficult and increased the risk of disruptions in the supply chain.

    New: Digital standardization in purchasing

    Digital standardization: The modern approach relies on digital technologies to effectively implement standardization in purchasing. By using e-procurement systems and central databases, processes are automated and uniform specifications are implemented company-wide. Key innovations such as electronic catalogs, automated order approvals and digital contract management tools enable increased efficiency. Digitization facilitates the consolidation of suppliers and the bundling of requirements, which leads to considerable cost savings. Practical benefits include a reduction in process costs of up to 30%, shorter lead times and improved quality assurance thanks to clear specifications and standards.

    Practical example: Implementation of e-procurement at an industrial company

    A leading industrial company decided to transform its purchasing processes through digital standardization. With the introduction of an e-procurement system, all orders were processed centrally via one platform. This resulted in a 50% reduction in procurement time and a 20% cost saving in the first year. Thanks to the standardized specifications, the quality defects in supplied materials fell by 35%, which significantly reduced production losses. The number of suppliers was consolidated from 500 to 200, which made supplier management more efficient. Overall, the measure led to an increase in competitiveness and sustainably improved business processes.

    Conclusion on standardization

    Standardization in purchasing is an essential lever for saving costs and increasing efficiency. By standardizing products, processes and specifications, companies can not only achieve volume discounts and optimize inventories, but also sustainably improve the quality of their procurement processes. The success of standardization depends largely on careful process analysis, the involvement of all stakeholders and the balance between standardization and the necessary flexibility. In view of the digital transformation, the importance of standardized processes will continue to increase.

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