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Procurement & Logistics
Background
The global procurement and logistics activities are derived from the corporate strategy and are mainly driven by a continuous demand for cost optimisation and sustainability in Aalborg Industries’ supply chain.
Objectives
The policy of Aalborg Industries is to deliver products of high quality that are service friendly and safe to operate. To this end, we maintain a high, uniform quality level for products and services acquired and delivered by Aalborg Industries. We supply heat and steam generating solutions as well as OEM (Original Equipment Manufacturer) components and spare parts that are readily obtainable throughout the world or through our 24-hour operating Global After Sales organisation. The products and associated services assist our maritime and industrial customers in keeping their vessels, machinery and production efficient and up running.
The cost optimisation is always based on a total costs principle, supported by key procurement and logistics targets which are converted into business group plans. Besides, improvement of the delivery performance (inbound / outbound) towards our customers and quality in all aspects are a natural part of the overall target.
Organisation
Aalborg Industries is working globally with Procurement Offices located in Denmark, Finland, Holland, Brasil, Singapore, Japan, China, South Korea and Australia. It is our intention to further strengthen the sourcing capabilities in all the procurement teams around the world by developing a strategic and holistic mindset towards Supply Chain Management.
A global Category Management function has been established and twelve spend categories have been nominated as global categories. Approximately 50% of the global spend are allocated to these categories. For each of the twelve spend categories, tailor-made sourcing action plans are implemented.
Closely linked to Category Management, two other global functions are in force. Technical Procurement and Programme Management. The focus of Technical Procurement is to link the engineering competencies and projects in the organisation to the global purchase, hence ensuring proper value engineering with suppliers. Programme Management is dealing with cost controlling and task management. This includes collecting, analysing and consolidating data/information from the various procurement functions in Aalborg Industries’ global entities and communicating results and progress to the organisation. The aim is to ensure that all the savings initiatives and investments within the new global sourcing organisation are technically sound, cost effective and quality assured.
Procurement
Our global Procurement & Logistics function aims to support Aalborg Industries’ market leadership by developing close relations to those suppliers who add value throughout the supply chain. Global agreements are signed with preferred suppliers to the benefit of both our internal procurement teams and the customers. We issue the general policies for supplier selection and material acquisition to ensure that all entities of Aalborg Industries have uniform procurement conditions.
Logistics
Within the logistics area, the strategic objective is to oversee the Aalborg Industries Group’s supply chain management and adopt best practices. The intention is to strengthen the service and quality level towards the customer through increased efficiency in a cost effective and quality assured manner.
Quality in all aspects
Aalborg Industries has an excellent co-operation with reputable suppliers internationally and nationally to ensure high quality and supply safety from our organisation.
All suppliers of Aalborg Industries undergo a quality check to comply with our Quality Management System and follow up on supply record and quality is continuous.
Performance tools
Formalised task management, key performance indicators and a price tracking system are the three key tools which are used to reach the strategic and financial targets as well as to improve the delivery performance and quality.
Yours faithfully
Aalborg Industries A/S, Aalborg, Denmark
Torben Hjort
Director
Procurement & Logistics
toh@aalborg-industries.com
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