Procurement Excellence
Procurement Excellence programme
Under the pressure of the global recession, cost control has become more crucial than ever. Outokumpu's Procurement Excellence programme (PEX), part of Supply Chain Excellence, is the Group's key driver in reducing purchasing costs. Procurement Excellence aims at building capabilities for continuous improvement in procurement and reducing Outokumpu's total cost of purchasing by eliminating the losses that result from fragmented purchasing volumes, a lack of alternative sources, untapped supplier know-how, non-value-added activities and uncontrolled expenditure. Procurement Excellence is not a short-term project but a key driver for continuous improvement in procurement function. Procurement Excellence is based on a category management approach which leverages knowledge of suppliers, products and services, development of professional procurement capabilities, optimal use of materials, products and services, and leverage of Group purchasing power.
The OUPEX programme
The Outokumpu Procurement Excellence programme (OUPEX) is a Group-wide procurement development programme for implementing a common way of working and a common SAP system as well as raw materials purchasing and inventory management. The system is based on a common template jointly designed by several business units within the Group. Implementation will take place in phases: OUPEX will first be taken into use at Tornio Works before being rolled out at other sites.
The Quick Wins project
Launched at the beginning of 2009, Quick Wins, a special project targeting short-term savings through the renegotiation of terms and conditions with selected suppliers, achieved significant Group-wide savings.