Webinar recording: Efficient B&C parts strategy: VEMAG's path to six-figure cost savings
published on
16.12.2024
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B and C parts are often underestimated in purchasing - but there is huge potential for savings here. In the webinar, we show how the mechanical engineering company VEMAG saved over 150,000 euros a year through data-based analyses and efficient processes.
B and C parts are often neglected in purchasing, even though they offer enormous savings potential. In our webinar"Efficient B&C parts strategy: VEMAG's path to six-figure cost savings", we showed how the mechanical engineering company VEMAG was able to save over 150,000 euros annually through data-based analyses and digital processes. Project Manager for Digitalization Steen Bösche gave exciting insights into the implementation of a successful B&C parts strategy at VEMAG.
The variety and quantity of B and C parts lead to a confusing supplier base in many companies. There is often a lack of standardized processes for supplier selection, price negotiations and orders. In addition, items are often overlooked due to their low unit price, although significant costs can accumulate due to the quantity.
A typical example of this is the purchase of consumables such as packaging, fasteners or office supplies. These items are often ordered at high frequency but in small quantities. Without systematic recording, price increases that add up due to cumulative demand can easily be overlooked.
Before the introduction of a clear strategy, purchasing processes were highly manual:
The introduction of modern SRM (Supplier Relationship Management) software enables systematic and data-based management of B and C parts. Intelligent modules such as price analysis tools automatically identify price outliers and provide purchasing managers with a sound basis for negotiations.
VEMAG also fundamentally changed its purchasing with the introduction of SRM software from Tacto. The following steps were implemented:
1. centralization of data
All supplier and material data was transferred from the ERP system to the SRM tool on a daily basis
2. definition of product groups:
Requests to suppliers were standardized and included drawing attachments from the PLM system
3. development of the strategy:
Automated analyses of order quantities, prices and suppliers were created
A specific example from VEMAG illustrates the savings potential: minced meat paper, which is used as a moisture absorber under burger patties, was initially purchased as a by-product. However, due to increasing production figures, the quantity required rose drastically from 1,500 kg to 11,000 kg within 3 years.
The price analysis showed that the purchase price had risen by 90%. A systematic tendering process ultimately led to long-term quantity contracts, which enabled the price to be reduced by 20%. By optimizing this material alone, VEMAG saved 10,000 euros per year.
Steen Bösche emphasized several lessons learned in the webinar:
The optimization of B and C parts in purchasing is more than just a theoretical possibility - it is a decisive lever for achieving sustainable cost savings. The example of VEMAG Maschinenbau shows how a systematic approach and the use of digital tools can achieve considerable effects.
The digital transformation in procurement will continue to gain in importance in the coming years. Companies that establish structured purchasing processes at an early stage create a solid basis for securing competitive advantages and realizing long-term cost reductions. VEMAG's successful B&C parts strategy is an impressive example of how procurement can also act as a strategic corporate function in SMEs.
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