Temporary (Interim) supply chain manager too expensive?

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Temporary (Interim) supply chain manager too expensive?

Return on interim management within 12 months

The Tier 2 Supplier a GmbH (German Ltd) for the automotive industry with 200 employees belongs to an American group of companies. The A GmbH is profitable. Comparative analyses have shown, however, that the costs related to purchasing, logistics, warehousing and transport are too high. The long-term purchasing manager does not speak English. It is therefore only purchased in the German-speaking area and an exchange with international colleagues does not take place. Digitalization has also not progressed far.

The managing director approves the purchasing manager for early retirement. Before a new fixed supply chain director is hired, an interim manager is to reorganize the purchasing process, analyzing the processes, e.g., writing steel and electronic components worldwide. Check make or buy decisions. Working capital is to be reduced. An exchange with international colleagues should be organized to be able to join framework contracts and learn from best practice solutions. The Managing director wonders where I can quickly find such an expert and will not be too expensive. He had already hired a consultant who had calculated 1,500 € plus travel expenses. His tips were valuable, but difficult to implement with his own people.

We are looking for one who makes it himself and, if possible, achieves savings in this fiscal year. Only an interim management provider knows such experts with a guarantee of success. Here, the expert has used 150 days to complete all tasks and finally to work on the new supply chain director. He has achieved a saving of 300,000 €. Its costs in less than 8 months have 200,000 €.

Conclusion: A clear return on interim management. All measures of the interim manager have a lasting effect.

2018-09-11T06:20:54+00:00September 11th, 2018|News, Series 40 years AlphaManagement, Supply Chain|

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