CLAAS: Short-term cost reduction based on lever methods
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„The whole ARAIA project team did excellent professional work. They entirely joined the CLAAS organization and achieved the high cost savings within a short period of time. We were impressed by ARAIA´s team strength to realize their objects. Without the strongly motivated and professional ARAIA team the aims of the project could not have been achieved. Josip Tomasevic, Head of Corporate Purchasing |
- The challenge
The client is an international market leader for agricultural machines. Due to the economic crisis CLAAS decided to achieve a short-term savings potential in the amount of 20 Mio € for defined commodity groups during the current fiscal year.
Consequently, the methods to achieve this aim had to be limited to those that would be effective during the current fiscal year.
- The solution
After a very short diagnostic phase the levers for every commodity group were defined and process plans were evaluated. By clustering and analyzing the commodity groups a new structure was built up together with the client. This led to an efficient and fast realization of cost savings.
- The result
- Generated savings of more than 24 Mio € remarkably exceeded the aim of the project
- Achievement of all savings during the current fiscal year
- Segmentation and clustering of commodity groups
- Development of further strategies to achieve a long-term savings result
