Due to our broad spectrum of customers from the chemical industry, HÖVELER HOLZMANN CONSULTING’s consultants have excellent insights into the industry and are ready to assist you as a strong partner regarding the issues of procurement optimization and supply chain management.
Our analysis of the chemical industry
In a worldwide comparison, the chemical industry in Germany is the fourth largest after the USA, China and Japan, and is therefore a key branch for the German economy. However, competition is fierce, which exerts high pressure on the costs. This prompts German companies to constantly develop themselves further.
Raw materials bought in addition and other commodity groups such as packaging and energy often make up more than 40 percent measured in relation to company turnover. The pressure on costs resulting from this makes it indispensable for companies to intensively work on the issue of procurement. That’s why German companies cannot only rely on advanced technology and continuous innovations in international competition. It is particularly important that procurement and supply chain management departments of major groups and mid-sized companies in the chemical sector are ranked highly in the company and work at the highest level.
In the chemical industry, sourcing markets for raw materials are often global. We, at HÖVELER HOLZMANN CONSULTING, consult our customers, among other things, regarding the procurement of basic materials in the Asian region.
Optimizing costs of phosphoric acid for a fertilizer manufacturer
Following a change in ownership, HÖVELER HOLZMANN CONSULTING was asked to review and optimize procurement of a chemical company. During the comprehensive optimization regarding savings potential, the important product group phosphoric acid, among others, was enhanced. HÖVELER HOLZMANN CONSULTING successfully identified a competent (qualitatively high value) supplier of phosphoric acid from China thanks to our Asian experts and a globally aligned procurement process. In addition, the existing logistics concepts were reviewed and developed further. In this way, costs for raw materials were able to be reduced significantly.
Levers for the project’s success:
- Comprehensive knowledge of the procurement market
- Conducting a global tender
- Asian expertise
- Risk management through dual sourcing to minimize the risk of non-deliveries
- Close cooperation with the customer’s staff
Results of the project:
- For a seven-digit purchasing volume of raw materials, a single-digit percent was able to be saved
- Minimization of the supply risk thanks to a dual supplier strategy
- Close cooperation with the customer’s staff enabled HHC’s know-how to be transferred to the employees