Procurement for Cement Plants

Achieve and sustain best value for procured goods and services at lowest total cost

Better Cost Management + Global Standards

Procurement needs to play a more effective role in order to achieve savings

Procurement can be defined as

all third-party sourcing activities  at strategic and operational levels to ensure minimum total cost of ownership.

the  systematic process  of deciding what, when and how much to purchase; the act of purchasing it; and the process of ensuring that what is required is received on time in the quantity and quality specified.

A worldwide applicable concept for procurement

Find it. Get it. Keep it.

• Spend Analysis is important to identify savings opportunities
• Bottom-up benefits planning brings responsibility to Group company level
• Benefits are included in Business Plans

• Close collaboration between functions is key
• Commodity Execution Process is applied on local, multi-local or global level
• Increased focus in high value commodities like Maintenance CapEx
• Streamlining of processes to lower transaction  costs

• Enforcement of compliance strategies will ensure benefits
• Regional Procurement Offices will support GC‘s to sustain procurement best practices
• Procurement Scorecard provides measurement and benchmarking possibilities

Total Cost of Ownership is at the heart of all procurement efforts

Acquisition costs

-Purchasing

-Installation

-Set-up

-Operation costs

-Financing costs

-Training costs

-Maintenance costs

-Insurance costs

-Tax

-Inventory carrying costs

-Administrative costs

Corporate Procurement role is to provide guidance

Corporate Procurement supports the “growing together as a Group” and guides Group companies to achieve savings

Corporate Procurement guides and monitors procurement activities to sustain best value for procured goods and services at lowest total cost while working closely together with Group Companies and integrating technical and commercial expertise.

This shall be achieved through group-wide …

4…implementation of efficient procurement standards,   methodologies, processes, organizations, information   systems, applications and relevant master data

4…enhancement of procurement skills and competencies

4…identification, selection and management of key suppliers

4…sourcing of selected goods and services.

Cross-functional collaboration with clear roles and responsibilities allows to achieve our benefits target

Close collaboration between end users and procurement will optimize our spend with 3rd parties

• Procurement influences all 3rd party costs and will contribute to significant savings
• The procurement concept of Holcim allows savings on all levels and is actively supported by Corporate Procurement
• Almost everybody in a company is a user of 3rd party products and thus can actively contribute to identify, achieve and sustain savings
• Procurement will actively contribute to savings – look for cooperation opportunities with procurement
• By working together we can find the money, get the money and keep the money

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