This morning I read an interview with Herbert Diess. He is as member of the board at BMW since October 2007 and he is responsible for the new division Purchasing and Supplier Network. Herbert Diess joined the board when BMW launched its new strategy program Number one. The program includes a savings target of 6 Billion Euros until 2012. Purchasing and Supplier Network has a target to contribute a share of 4 Billion Euros. So Herbert Diess has some work to do!
In the interview he describes how the new division Purchasing and Supplier Network is setup which I found quite interesting. The division is not only in charge of Purchasing but is also responsible for the quality and the delivery of all parts build into a BMW. This responsibility even includes parts which are manufactured by BMW itself. In the past the Purchasing division was reporting to R&D and was not a direct part of the BMW board.
4 Billion Euros is quite ambitious but I believe the new division is equipped with the right powers to actually achieve it. I will get back to it in 2012.
July 21, 2008 at 10:22 am
[...] BMW Number One – waiting for the half year report The main share of cost savings in BMW’s strategy program “Number One” is supposed to come from Purchasing and Supplier Network (see my recent post). [...]