“Quality, efficiency and cost optimisation are key factors for achieving objectives in the Purchases area. This is done by maintaining a relationship of collaboration and trust with our supplier network, which enables us to promote strategic projects such as general procurement management In the Iberian Peninsula and the development of North Africa”, explained SEAT Vice-president for Purchases Klaus Ziegler.
Core department for SEAT’s strategy for the future
Among the most prominent projects of 2018, the Purchases department contributed to the launch of the SEAT Tarraco, which is manufactured in the Wolfsburg plant in Germany. SEAT led the project and managed the choice of suppliers, preproduction tests and parts control.
In the same year, SEAT also set out the progressive reduction in the total cost per vehicle by establishing a production model that is more efficient and sustainable. To make this happen, a multidisciplinary work team launched the Full Cost Optimisation (FCO) project, which is participated by the areas of R&D, Production, Finance and Purchases. Last year saw the implementation of suggested improvements that brought a savings of 141 million euros in 2018.
SEAT’s ambitious globalisation strategy, which includes projects such as taking a leadership role in North Africa and the assembly plant in Algeria, has extended the responsibilities of the Purchases area. Since 2018, SEAT has a new team that manages supplier relations in the region, and in the past year has made contact with potential local and international suppliers who are interested in manufacturing parts in Algeria. Furthermore, Morocco has a highly developed automotive sector that offers new opportunities for collaboration with locally established suppliers, which has resulted in new project assignments.
Moreover, since 2017 SEAT has managed the coordination of the Volkswagen Group’s general purchases activities in the Iberian Peninsula for all procurements that are not directly related with vehicles in order to identify synergies and contribute to cost optimisation. The total volume of general purchases managed by SEAT in the Iberian Peninsula in 2018 amounted to nearly 2 billion euros.
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