Purchasing strategy (65% of direct spend)

Running material costs down
Price change index = у/х, where
х = price index (former period) = former period prices (materials procured in former and new periods) multiplied by quantity in new period (quarter),
у = price index (new period) = new period prices (materials procured in former and new periods) multiplied by quantity in new period (quarter).

Purchasing department structure changes
indirect materials
part of packing materials
Procurement strategy development.
New vendors allocation, biddings, alternative materials testing, frame contracts
Sleptsov S.
Purchasing dpt general management
3 buyers
3 buyers
Savings projects = Think and be richer!
Targets
Process clarity
(you can not manage what you can not see)
Buyers specialization
(processes unification for better buyer performance)
Motivation
(meeting savings targets)