Ted Bonnamy, an Estimator at ALL Circuits, gives us his feedback following the introduction of the Buymanager strategic sourcing software package at the Projects Procurement department.
A French PCB subcontractor established in Meung-sur-Loire for over 20 years, the company ALL Circuits has experienced a boost in its activities in recent years. The group has a turnover of €280 million, of which €185 million corresponded to MSL in 2016. The automotive sector represents 66% of the group’s activity and 100% for ALL Circuits. With more than 1500 employees spread across 3 sites, including 2 in France (Meung-sur-Loire and Bayonne) and one in Tunis, the need to implement cross-cutting and homogenous processes has become essential.
Can you quickly tell us about your project procurement department ?
The project procurement department at ALL Circuits comprises eight people. Four buyers in charge of existing client projects, two project purchasers, one estimator and one mechatronics engineer. I am personally in charge of material costing for prospective ALL Circuits customers and material costing for Valeo at our 3 sites. Since the installation of six Buymanager floating licenses in 2013, I regularly use the quoting module on a daily basis, dedicated to BOM costing. Two project buyers perform the role of the estimator, at the Tunis and Bayonne sites respectively, for costing at each site.
Why did you decide to implement an eSourcing solution ?
Before installing a dedicated solution, our queries were all performed in Excel, using macros. The files were sizeable and contained a lot of information that constantly needed to be extracted. It is difficult to refer to files that are not updated or that we have not created ourselves. This problem is amplified when it comes to defining our strategic query plans.
After the takeover of MSL in 2009 by the AIAC group and the integration of BMS and TIS circuits sites, we soon had to perform our queries independently whilst using common data. We, therefore, had a pressing need for cross-cutting communication among our teams. We needed to know each unit’s references and sourcing strategies.
What are the main benefits you have enjoyed since Buymanager was deployed ?
We have experienced significant process since the integration of the “Custom Report”. The Custom Report is a variable geometry Excel template that can be adjusted with different algorithms and scenarios. This saves a considerable amount of time because the report file is ready to use instantly. This process becomes very interesting when we need to repeat reports. The continuous enrichment of our articles database makes our queries clearer and increasingly relevant.
Our four main customers alone represent 60% of our recurring costings, resulting in around 100 multi-BOM queries. In particular, the front and rear LED lights of current vehicles often represent more than a dozen PCBs sorted by case and according to function, e.g. right and left versions and quantity scenarios. Each PCB must be individually costed while benefiting from the effect of consolidation of volumes. In 2016, across our 3 sites, we costed more than 180 cases in Buymanager, i.e. twice those costed in the previous two years. The same rate is being achieved in 2017. Not all our costings go through Buymanager, but this number decreases from year to year and has become almost insignificant.