Kpi & Purchasing Strategies Mb Consulting

1. MB Consulting, SASU au capital de 7 500 €, APE 7022 Z, siret en cours
Tél : +33 618 622 053 / E-mail : mb_consulting@sfr.fr
KPI n°1
• HighVolume
• Low
Purchasing
Value
KPI n°3
• HighVolume
• High
Purchasing
Value
KPI n°2
• LowVolume
• Low
Purchasing
Value
KPI n°4
• LowVolume
• High
Purchasing
Value

2. ParetoAnalysis by increasing sales and growing
number of references. 80/20 Law unbalanced. Price
smoothed / benchmark impossible
3 categoriesA, B, C representing% of turnover:
80%, 15% and 5%. No opportunity to identify
inconsistencies volume / turnover
ParetoAnalysis by increasing volume and
increasing number of references. 80/20 law very
unbalanced. Price not smoothed / benchmark
possible but too many references
3 categoriesA, B, C representing% of turnover:
80%, 15% and 5%. No opportunity to identify
inconsistencies volume / turnover
ParetoAnalysis by increasing sales, increasing
volume and increasing number of
references. 80/20 Law balanced. Price not
smoothed / benchmark possible and effective
3 major categoriesA, B, C representing% of
turnover: 80%, 15% and 5%. Ability to identify
inconsistenciesVolume /Turnover

3. 1
 Continue to monitor the procurement price. Ask productivity but also conserve
the QCD. Making technical rationalization (deduplication, standardization, ...)
 After studying technology / process, transfer a maximum of category “3” to this
category
 If supplier (s) is in the category of “actives” or “challengers”, to pass in category
"key", even if its turnover is low.
 If its ability to grow with us is limited, help
-This is the ideal category,
dream of every buyer
- It tells us that for a large
volume, the supplier is very
competitive
- Challenge and energy
necessary for the buyer:
Medium
KPI n°1
• HighVolume
• Low Purchasing
Value

4. 2
-This is the most important
category because it is
invisible.
- It tells us that for a small
volume “acive” supplier “ is
better or as well as “key”
supplier .
- Challenge and energy
necessary for the buyer:
Medium
 If (s) supplier (s) is in the “active” category or “challengers”, then switch to
“key” category, although its sales are low.
 If its ability to grow with us is limited, help and support
 Serve as a benchmark for other suppliers
KPI n°2
• LowVolume
• Low Purchasing
Value

5. 3
 Identify duplicate parts, technical streamlining, multisourcing. If QCD are
equivalent , do a QVE (Quality Value Engineering) approach (eg reduction in
thickness matter, technology rupture, industrial process optimization).
 Ask productivity but also conserve the QCD. Transferring business to “2” or
“1”. Mobilizing the R&D to go to a less expensive technology.
 Trying to break down the business. If “Key” Supplier, absolutely multisource
and perhaps buy the technology and develop it with a competitive supplier.
-This category existing when
the portfolio has not been
worked, the nightmare level 1
- It tells us that for a large
volume supplier is not
competitive.
- Challenge and energy
necessary for the buyer: High
KPI n°3
• HighVolume
• High Purchasing
Value

6. 4
 Unlikely to find duplicates => technical rationalization. Multisourcing.Identify duplicate parts,
technical streamlining. If QCD are equivalent , do a QVE (Quality Value Engineering) approach
(eg reduction in thickness matter, technology rupture, industrial process optimization).
 Ask productivity but also conserve the QCD. Transferring business to “2” or “1” if possible,
otherwise transfer toward “3”.
 Task Force with internal R&D to move to a less expensive technology.
 Leave as soon as possible this supplier, unless an edge on the market (verify with marketing
and trade functions). Try to ventilate the business of the “Key” supplier and to break it down.If
“Key” Supplier,
 Absolutely multisource and perhaps buy the technology and develop it with a competitive
supplier.
-This is typical class of monopoly
supplier, the nightmare level 2
- It tells us that for a small volume,
the margin of the buyer is close
- Challenge and energy necessary
for the buyer: High or Very High
KPI n°4
• LowVolume
• High Purchasing
Value