TKMC Case: Premiumstahl AG and the global procurement market

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Case Prompt

Premiumstahl AG is a steel producing group operating mainly in Europe. The core business areas are steel production and the manufacturing of flat products from quality steel, as well as the provision of services in the steel sector. In the context of the transformation of Premiumstahl AG to a green steel player, the purchasing director Mr. Müller approaches you with the request to reduce purchasing costs in order to free up funds for green investments. As some optimization projects have already been initiated, the Board of Management asks you to take a closer look at the topic of "Global Sourcing".

Additional Information

Task 1: Optimization levers

Mr. Müller asks you to briefly explain which optimization levers are conceivable in addition to global sourcing in order to reduce procurement costs.

Task 2: Procurement costs

In order to prioritize the individual procurement areas, Mr. Müller would like to know which of the following procurement costs you can best influence. To which area can the optimization lever "Global Sourcing" best be applied?

Task 3: Cost drivers

You meet Mr. Müller in the elevator. He inquires about the controlling report in your hands and asks you for a brief explanation of the composition of these costs before the next board meeting. Since your colleague has not provided you with any further information on the figure from the report, you have to explain to Mr. Müller, which cost items such a procurement sum typically consists of.

Task 4: Supplier selection

Mr. Müller asks you to evaluate possible cost savings concerning the cold rolling mills.

Task 5: Quality check

Briefly explain what possibilities exist for Premiumstahl AG to influence the quality of products from certain suppliers.​

9.2k
Times solved
Intermediate
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