Purchasing Interim Management Case Study
Automotive Turnaround

Industry

Automotive.

Client

Global first tier systems supplier.

Role

Interim Purchasing Director

Background to Purchasing Interim Management Assignment

The business had been recently acquired by the client. It was unprofitable and a new executive turnaround team was recruited including: Managing Director, Operations Director, Purchasing Director and HR Director. The business was being starved of cash by its parent, to force it to make cost savings. Outside of the new executive team morale was very low. The purchasing team was transactional not strategic and was also responsible for managing inbound logistics and warehousing.

Key Activities as Interim Purchasing Manager

• Conducted a rapid review of the spend
• Diagnosed critical improvement opportunities
• Decoupled purchasing from tactical logistics & warehousing, to concentrate on strategic purchasing
• Empowered existing purchasing manager
• Recruited new buyer with strong technical background internally
• Introduced the tracking of published polymer indices
• Coached new buyer to deliver 38% saving in LDPE polymer prices
• Avoided £ 149k increases and delivered £ 325k “Quick Hit” savings in first three months
• Led multi-disciplinary team to solve business's most critical supplier quality problem
• Managed business continuity despite force-majeur situation at key supplier
• Led capital purchasing project for specialist tooling
• Managed challenging supplier payment situation carefully in conjunction with credit control manager
• Introduced supplier of key polymer extrusion - 23% saving.
• Contract extended twice
• Offered the position on a permanent basis (declined)

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