Procurement controlling has an important impact on our purchasing decisions to be made. For that matter we rely on highly efficient software, which allows us to monitor all relevant performance indictors, in order to deduct product category related strategies and to evaluate their success.
The most vital part of reporting is the KPI for change in material cost. It represents the influence on the profit and loss account. Furthermore, external factors such as volatile currency exchange rates and commodity prices are also measured and accounted for in our purchasing decisions.
We have declared it our goal to optimize our contract management. Besides unified contractual standards based on modular documents, our focus is also on establishing an SAP-based contract creation and filing system, as well as a proactive controlling of each contract within its duration period. This allows us and our suppliers to optimize materials requirement planning, in order to secure supply chains and to design pricing according to procurement needs. Through this redesign, a basis for increasing framework contract quota was created.
Amphenol Tuchel Industrial is part of the worldwide “Amphenol International Industrial Operations” (AIIO). Within this structure we work the procurement markets relevant to the AIIO on a worldwide basis. One special focus is the common development of a supplier basis, applying common guidelines and tools. For the European procurement market and its suppliers the responsible unit is our Heilbronn (Germany) branch, whereas the operative procurement and inbound/outbound materials handling is handled at our production facility and distribution center in Ostrov (Czech Republic).
By providing transparency over application criteria and processes such as the common supplier evaluation, we are able to carry out “True Global Sourcing” in all regions of our activities. Namely the supplier markets in Europe, North America and Asia (especially China). Global processes and local market conditions help us to make market-appropriate, worldwide purchasing decisions, without neglecting local needs of Amphenol Tuchel Industrial GmbH or any other AIIO corporations.