Why will pure procurement no longer be adequate in the future?

In our article, you can read more information about that topic and what added value our Zollner Global Procurement creates.

Creating added value with «Zollner Global Procurement»

The crises in recent past have plainly shown the significance of functioning procurement. It became ever more clear that pure procurement, with obtaining supplier offers, optimizing the price/performance ratio and order processing, will no longer be adequate in the environment of networked, globalized business, even taking away crisis-caused disturbance factors.

Along with the price of the goods to be procured for production – which anyway can be up to 80 percent of the total cost of a product – further aspects have a significant influence on marketability and supply security, like the ability to be planned and the reliability of the global supply chain, quality of the components and a fast, transparent flow of information.

In order to generate added value as an EMS provider and competitive advantage for OEM customers, the pure procurement function must be supplemented with elements like supplier management and quality, logistics solution and risk management. The Zollner Group of companies, as a globally established EMS provider with 23 locations in 9 countries on four continents, realizes this in a profitable way for its customers.

Synergistic effect from central demand bundling

One of the central measures that addresses aspects of price, quality and the minimizing of risks is bundling the demands of customers across sector lines - for example, from the Automotive, Healthcare & Life Sciences, Industrial Electronics, Rail Technology and Aerospace & Defense. All this is controlled by the central office in Zandt, Germany. With that the option exists to negotiate directly with manufacturers, which also has a positive impact on the flow of information and significantly simplifies digitalization in the processes. Additionally, a minimization of risk occurs for the OEM customer, which comes from the typical, varying market fluctuations in the different sectors, in that demand for the components can be guaranteed to some extent at the manufacturer. With that, Zollner positions itself from a manufacturer’s view as a reliable partner, who in difficult times, like these, will receive preferential service.

The topic of supplier management is driven centrally from the headquarters in Zandt as well as in the local teams in the procurement markets of Germany, Eastern Europe, China and the USA. With that, visible added value is generated for the customer from centrally organized bundling and the insights into local procurement markets, again under the aspects of supply chain reliability and price optimization. Thanks to a standardized and end-to-end, global EPR system, not only is information transparently available throughout the entire organization, but we also create the prerequisites for linking the bundling of individual demand requirements from various countries and customer segments with manufacturers with intelligent logistics solutions. 

Digital strategy for supply chains

Last but not least, the topic of risk management also plays a central role. This is heavily dependent on reliable and timely information as well transparency along the entire supply chain. Here Zollner is trusting in digitalization. Simply processing the quantity of available information and classifying it in the correct context would typically overwhelm a conventional purchasing organization and, especially in today’s highly networked and globally specialized industrial environment, requires responsive and with that resource-consuming logistics behavior upon the slightest disruption. Based on ever increasing digitalization, Zollner is counting much more here on new approaches for optimizing procurement from the areas of AI (Artificial Intelligence), Crowd Intelligence (collective intelligence) and systematic evaluation and linking of the most widely varied platforms to be able to keep the global risk environment under control as well as possible.

The professional, proactive and globally acting purchasing organization at Zollner creates significant added value for OEM customers with a holistic methodology, especially in the EMS area, and with that provides competitive advantage regarding marketability and supply security.

 

Information service
Zollner Electronics GmbH
Garstligweg 2, 8634 Hombrechtikon
Tel. 043 244 42 00,
Fax 043 244 42 01
info@zollner.ch,
www.zollner.ch

Digitalization process - goods in the distribution center