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Strategic procurement optimization in Europe
Optimized procurement conditions at Cable Connectivity Group
The Cable Connectivity Group, a leading company in cable technology with over 600 employees and a turnover of over 200 million euros, was faced with the challenge of optimizing its procurement conditions. valantic provided support with Europe-wide tenders and strategic negotiations to leverage synergies, strengthen competitiveness, and realize significant savings.
About the company
The Cable Connectivity Group / TKD is a leading global supplier of special cables, ready-to-connect cable systems and cable accessories based in the Netherlands. With a focus on customized solutions, the group offers a wide range of high-quality products for industries such as mechanical engineering, automation technology, telecommunications and security technology. Through innovative technologies and customer-oriented consulting, CCG develops individual cable and connectivity solutions that meet the highest quality and environmental standards. The group is represented internationally in over 40 countries and operates sites in Nettetal, Iserlohn and Reutlingen in Germany.
The project
The challenge
The Cable Connectivity Group was faced with the challenge of optimizing its procurement processes across several European locations. The existing procurement was characterized by a decentralized structure and unused synergy potential between the business units in different countries. The aim was to improve conditions and achieve significant savings by centralizing procurement activities in both direct and indirect procurement.
Consulting approach
In order to successfully master this challenge, the optimization project was divided into two main areas: indirect and direct procurement.
Indirect procurement
- Conditions in indirect procurement were improved through Europe-wide tenders and strategic negotiations between the various business units of the Cable Connectivity Group. The focus was particularly on road freight transport, CEP outbound and cable drums, pallets and packaging materials. The aim of these measures was to identify potential synergies within the Group and establish a centralized procurement approach in order to increase efficiency and transparency.
Direct procurement
- In direct procurement, conditions were optimized through strategic negotiations with A and B suppliers. Payment terms with C suppliers were also improved. The “Logomate” tool was introduced to further increase planning efficiency. In addition, a Target Operating Model (TOM) and Standard Operating Procedures (SOP) were developed in order to implement a standardized procurement process and ensure efficient and consistent procurement processes in the long term.
Solution and customer benefits
By optimizing procurement conditions, the company achieved savings in the seven-figure range. The centralized procurement approach led to greater process transparency and efficiency. The implementation of modern workflows enabled a sustainable improvement in planning and synergy potential.
Conclusion
Thanks to the strategic realignment of the procurement process, the Cable Connectivity Group was able to significantly reduce its costs and achieve a sustainable increase in efficiency. The centralization and use of synergies made a decisive contribution to strengthening competitiveness.
Your Contact
Jan Laakmann
Partner
valantic Supply Chain & Procurement Consulting