In today's business landscape, a significant portion of value, approximately 80 to 90%, is generated externally, making procurement a paramount area of concern. While companies have made strides in adopting advanced technologies and best practices, there remains substantial room for improvement, often within overlooked areas. By focusing on these areas, substantial cost savings, increased efficiency, and enhanced trust can be achieved. The primary objective of this thesis was to identify and illuminate these often-overlooked areas, seeking to transform discrepancies into opportunities for cost savings. This report encompasses the findings and outcomes of multiple projects undertaken at Whirlpool, namely, "Information Sharing and Coordination Between Stakeholders – material description standardization," "Simplifying Steel Industry Negotiations Through Smart Pricing Analysis," and "Enhancing Procurement Efficiency and Planning Through Share Analysis Tool". The central goal of these projects was to harmonize the procurement process and align it with the overarching company strategy. This thesis explores these projects in depth, shedding light on their methodologies, impacts, and the potential for wider application in the realm of procurement. The thesis extends its purview also to market trend analysis, scrutinizing the factors that influence steel prices, such as economic conditions, supply-demand dynamics, and geopolitical events. It examines the cost basket for steel, encompassing various cost components, from raw materials to regulatory expenses. The most significant project undertaken, "Enhancing Procurement Efficiency and Planning Through Share Analysis Tool", involves the monitoring and control of procurement plans across global manufacturing plants. This project has yielded substantial results, generating monthly savings of over 180,000 euros in the steel commodity alone, amounting to an impressive annual saving of over 2 million euros in the steel commodity.
Nel panorama attuale degli affari, una parte significativa del valore, approssimativamente dell'80% al 90%, è generata esternamente, rendendo la gestione degli approvvigionamenti un'area di preoccupazione di primaria importanza. Nonostante le aziende abbiano compiuto passi avanti nell'adozione di tecnologie avanzate e migliori pratiche, permane un ampio margine di miglioramento, spesso in aree trascurate. Concentrandosi su tali settori, è possibile ottenere notevoli risparmi, incrementare l'efficienza e accrescere la fiducia. L'obiettivo primario di questa tesi è stato identificare e mettere in luce tali aree spesso trascurate, cercando di trasformare le discrepanze in opportunità di risparmio. Questo rapporto racchiude i risultati e gli esiti di diversi progetti intrapresi presso Whirlpool, in particolare "Condivisione delle informazioni e coordinamento tra gli stakeholder – standardizzazione della descrizione dei materiali", "Semplificazione delle negoziazioni nell'industria dell'acciaio tramite analisi dei prezzi intelligenti" e "Miglioramento dell'efficienza degli approvvigionamenti e pianificazione tramite strumento di analisi delle quote". L'obiettivo principale di questi progetti è stato armonizzare il processo di approvvigionamento e allinearne la strategia aziendale complessiva. Questa tesi esplora in profondità tali progetti, gettando luce sulle loro metodologie, impatti e il potenziale per un'applicazione più ampia nell'ambito degli approvvigionamenti. La tesi amplia il proprio raggio d'azione anche all'analisi delle tendenze di mercato, scrutando i fattori che influenzano i prezzi dell'acciaio, come le condizioni economiche, la dinamica domanda-offerta e gli eventi geopolitici. Esamina il paniere dei costi per l'acciaio, che comprende vari componenti di costo, dalle materie prime alle spese regolamentari. Il progetto più significativo intrapreso riguarda il monitoraggio e il controllo dei piani di approvvigionamento presso gli impianti di produzione globali. Questo progetto ha prodotto risultati sostanziali, generando risparmi mensili di 180.000 euro solo nel settore delle materie prime in acciaio, corrispondenti a un notevole risparmio annuo di oltre 2 milioni di euro nel settore delle materie prime in acciaio.
Aligning Procurement Strategies across Global Operations: Challenges and Solutions from Whirlpool Case
AHMED, RAJA SHEHZAD
2022/2023
Abstract
In today's business landscape, a significant portion of value, approximately 80 to 90%, is generated externally, making procurement a paramount area of concern. While companies have made strides in adopting advanced technologies and best practices, there remains substantial room for improvement, often within overlooked areas. By focusing on these areas, substantial cost savings, increased efficiency, and enhanced trust can be achieved. The primary objective of this thesis was to identify and illuminate these often-overlooked areas, seeking to transform discrepancies into opportunities for cost savings. This report encompasses the findings and outcomes of multiple projects undertaken at Whirlpool, namely, "Information Sharing and Coordination Between Stakeholders – material description standardization," "Simplifying Steel Industry Negotiations Through Smart Pricing Analysis," and "Enhancing Procurement Efficiency and Planning Through Share Analysis Tool". The central goal of these projects was to harmonize the procurement process and align it with the overarching company strategy. This thesis explores these projects in depth, shedding light on their methodologies, impacts, and the potential for wider application in the realm of procurement. The thesis extends its purview also to market trend analysis, scrutinizing the factors that influence steel prices, such as economic conditions, supply-demand dynamics, and geopolitical events. It examines the cost basket for steel, encompassing various cost components, from raw materials to regulatory expenses. The most significant project undertaken, "Enhancing Procurement Efficiency and Planning Through Share Analysis Tool", involves the monitoring and control of procurement plans across global manufacturing plants. This project has yielded substantial results, generating monthly savings of over 180,000 euros in the steel commodity alone, amounting to an impressive annual saving of over 2 million euros in the steel commodity.| File | Dimensione | Formato | |
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2023_12_AHMED.pdf
non accessibile
Descrizione: This document is my thesis, detailing the enhancement of procurement processes at Whirlpool. It examines initiatives in stakeholder collaboration, pricing and share analysis, and standardization of material descriptions, demonstrating significant cost savings and improved efficiency in procurement operations.
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2.81 MB
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Adobe PDF
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2.81 MB | Adobe PDF | Visualizza/Apri |
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https://hdl.handle.net/10589/214015