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Purchasing 4.0: cost optimization with Knauf Industries

When we talk about providing real value to our customers in the process of complex large-scale production, we know that the most important thing is not only the manufacture of the product itself but also the comprehensive supervision of all processes, including cost optimization. The combination of these elements ensures high-quality service and contributes to building business relationships based on mutual trust.

WHAT ARE BENEFITS OF PURCHASING 4.0? 

Purchasing 4.0 is a major trend in Knauf Industries' purchasing department. We know that this part of our organization has a huge impact on both our company's budget and the value offered to our customers. We have combined the automation of processes with their simultaneous supervision by specialists to ensure an analysis free of errors and mistakes, which guarantees our customers the best personalized service. A purchasing process conducted in this way benefits our customers in three areas. 

1. TCO (Total Cost of Ownership) WHICH MEANS SAVING MONEY

The centralization of processes ensures that we get the best solutions for optimizing acquisition costs and allows us to save a lot of money. Offers are automatically compared in the system. Accurate data analysis helps us make strategic decisions, and category management contributes to the best results. We consolidate and standardize needs around purchasing categories, with the same considerations for each of our sites. We check the Total Cost of Ownership (TCO) for each project. TCO is a calculation method designed to help you make informed financial decisions. Instead of considering only the purchase price of an item, a TCO analysis allows us to consider their total cost – from purchase to disposal – including the projected costs we will incur over the life of the product. This includes servicing, necessary repairs, insurance, etc. TCO is included in a comprehensive cost-benefit analysis (CBA). 

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2. QUALITY CONTROL AS AN ELEMENT OF COST OPTIMIZATION  

We put a lot of effort into developing our network of suppliers. We focus on selecting contractors who offer the best price/quality ratio, providing quality services with the possibility of negotiating favorable discounts. Furthermore, we prioritize cost optimization by making every effort to eliminate unnecessary expenses. We carefully check our automotive suppliers, taking into account all required regulations in the automotive industry and adhering to the IATF 16949: 2016 standards. The ISO 9001: 2015 and IATF 16949: 2016 standards define the basic requirements for the supplier development and management process in the automotive industry. Suppliers must comply with these standards to ensure that all parts supplied to the automotive industry are of the highest quality. 

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3. PROCESS AUTOMATION IN THE AUTOMOTIVE MARKET 

Using SAP helps us track our purchasing needs, develop forecasts for suppliers and avoid independent purchases that generate higher costs. We are constantly trying to improve and automate various aspects of our processes at all organizational levels. One example of recent improvements is the introduction of additional vending machines for distribution. Today, they are used for more than just drinks and snacks – in our manufacturing plants, we use them to distribute protective clothing, helmets and tools. We also use electronic auctions for suppliers on special projects. This allows us to receive the best deals available on the market and provide our customers with a transparent and optimized purchasing process. Purchasing 4.0 allows us to deliver the best quality service to all our customers. 

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