The company had had a greater focus on the purchasing costs of direct materials than of indirect materials and believed that potentially significant savings could be made in the latter. With this type of problem, it is important to start with a factual analysis. At the same time, the organisation’s particular circumstances must be taken into account. Level21 always uses proven methods and tools, combined with the customer’s special requirements.
Level21 analysed and structured material costs, and identified areas with the greatest effect on total costs. A cross-functional team was put together with staff from the customer and led by Level21. Goals were formulated per product group, and basic causes were analysed and cost drivers identified. Negotiations took place with specific suppliers. Goal fulfilment was followed up and secured. In parallel with analysis work, improvement activities were conducted in internal materials provision.
The results were reduced material costs and a more effective supply chain. Working closely with the organisation led to the development of its own expertise and capacity.
This is how sustainable results are created.