After several years of production optimization, the senior management of a Scandinavian electronics company (total purchase of 500+ million DKK) decided to establish a more strategic approach to the procurement of components and anchor these improvements at the sales stage.

Prokura began by conducting a thorough and factual review of the company’s total purchases which helped identifying the categories that had the highest savings potential and were the easiest to realize.

Afterwards, we conducted a number of strategic sourcing projects in two waves, in cooperation with the company’s purchasing team.

• First wave: Prokura driving individual projects and the entire strategy while the client’s purchasing team focuses on learning our analytical tools
• Second wave: the client’s purchasing team, now in a much better position, took over management of the overall project

The result of the change project was a fundamental transformation of corporate purchasing methods. Whereas previously the company was involved in daily firefighting just to get the correct components, the new shift to a more strategic focus lead to substantial savings across the direct purchasing categories.

To find out more about this case and other industry solutions for electronics companies, please contact René Gram.