Agile Transformation of an OEM’s Purchasing Department

Disruptive developments in the automotive market will significantly change the role of OEM’s in the next decade. Especially, the next shift to mobility as a service will inevitably force manufacturers to compete on multiple fronts. Traditional car manufacturers and suppliers will be under continuous and increasing pressure to reduce costs and become more efficient on their supply side.

The Lean-Agile Enterprise and its Target Operating Model

The biggest challenge for the department was to successfully shape the transformation

• Higher efficiency to achieve planned HR costs
• Sustainably improve processes and structures to master future requirements
• Develop and initiate a strategic concept including the key initiatives to kick-off the transformation of the purchasing department 2025

Six action fields to structure the implementation of the TOM

Hybrid-organization balances objectives to holistically improve organizational performance

How we established a new way of working

The project identified and developed three strategic work models:

• Transparency on strategical challenges
• Purchasing performance benchmarking and current position determined
• “Target Operating Models” with three working models created: Speed – Efficiency – Agility
• Role models for each key initiative defined and implemented
• Agile working principles and cultural change initiated

The client benefits were significant:

• Overall HR cost target over-fulfilled by more than 30 percent
• Three strategic work models and more than 30 key activities successfully implemented
• Agile principles integrated in purchasing and organizational transformation successfully launched