Sourcing project on semi-finished product
Sourcing project on semi-finished product
Sustainable value created
- Evaluation of make-or-buy scenarios and a review of alternative materials was conducted, along with the Identification and assessment of an innovative technology that can contribute significantly to more environmentally friendly production of phenol paper
- Direct savings of at least 20% were achieved, with the possibility of further reductions with more intensive collaboration
- As a result of lower prices from foreign suppliers, the use of alternative materials and a modified production process at potential suppliers, the company is able to compete again on the European market without compromising quality
Client profile
Market leader in the construction material industry with an annual spend close to 1 billion euros.
The challenge
The company had to improve its production process and reduce costs as a result of increasing competition from Asia in the European market. The market was also suffering from increasing raw material costs especially for the chemical used and the other raw material. A major challenge was optimizing their cost structure in order to maintain or expand their market share in Europe. An important impediment to the process was the external purchase of the intermediate product, semi-finished product.
Hudicor’s approach
A two-part sourcing project was carried out for the semi-finished product. First, to assist the laminate team with the sourcing situation in the future given the intention to expand further in terms of volume and capacity. On the other hand, a study of the related semi-finished product market in Europe and Asia to ensure the lowest laminate production costs.
As a first step, Hudicor’s team conducted an internal analysis to identify the current production process and technical specifications for the final product. Following that, a detailed external market analysis of both the current phenol paper semi-finished product market and its related markets was carried out.
direct savings of at least 20% were achieved, with the possibility of further reductions with more intensive collaboration.
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