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Aebi Schmidt: Leader in Infrastructure

New insights into procurement strategy for Aebi Schmidt

Aebi Schmidt Group is a leading global provider of intelligent solutionsfor handling and managing mission-critical infrastructure and agriculturalareas. The company was founded in 1883 and now has fourteen factories acrossEurope and the US, with a total of around 3.000 employees. The Dutch plant inHolten manufactures spreading machines, (airport) spraying machines,combination machines, and trailer sweepers. Together with branches in Germanyand Switzerland, Aebi Schmidt Netherlands initiated a Direct MaterialOptimization (DMO) project with the Kloepfel Group in 2019 as part of aninternational procurement project of the Aebi Schmidt Group.

Great sensitivity

The aim of the project was to gain new insights in theprocurement strategy, whereby Kloepfel's procurement and industry expertise wasexpected to provide a breath of fresh air. The biggest challenge at the start ofthe procurement project was Kloepfel’s position within Aebi Schmidt environment.“Colleagues in Germany had no experience with this type of project yet andtherefore, took a wait-and-see attitude. After the initial contact went welland the first results came in, this attitude changed,” outlined HaraldBloemers, the Manager of Plant Procurement at Aebi Schmidt Netherlands. “Kloepfelshowed great sensitivity to the differences between the Aebi Schmidt branches and the relationships with suppliers. They realised the value of existingsupplier contacts and relationships and used them to achieve maximum results.”

Long-term focus

The optimisation project led to significant results. “Deliveryreliability improved significantly, thanks to better agreements with suppliersand a reduction in transportation costs through supplier consolidation. By concludinglong-term contracts, stability has also visibly increased,”Bloemers said. “The focus on the long term solution was essential here. And yet, we stilluse some of Kloepfel's best practices that were introduced at the time, such ascontracts and standard formats.” Meanwhile, Aebi Schmidt has also taken thenext step toward Commodity Management.

Lasting impact

All in all, Bloemers concluded that the desiredsavings have been realised and are still having a long lasting, positive impacton the company several years later. In his perspective, the employees ofKloepfel have played an important role in this. “They became part of the teamand were on a level with the other colleagues, which resulted in a smoothcooperation,” he said. “All in all, a very successful project for Aebi Schmidt.”