ERA consolidates steel purchases for BAUER Group and saves over 7 per cent
BAUER Group is an international construction and machinery company specialising in products and services in the field of soil and groundwater. Founded in 1790, the Bavarian family business has grown over the centuries into a global group with more than 110 subsidiaries in around 70 countries.
Win-win
An important objective that Bauer pursues in company acquisitions is to create synergy effects and reap the benefits. In order to exploit such a win-win situation in the procurement of steel, ERA was commissioned to investigate what joint procurement could deliver for four subsidiaries.
More competitive purchasing
The combined steel purchasing volume for these companies amounted to around 14.5 million tonnes per year. However, the steel market is constantly subject to sharp price fluctuations that are also difficult to predict. ERA wanted to use this project to enable Bauer to purchase more competitively than the industry benchmark on a structural basis. And it succeeded: the new approach saves the Bauer Group more than 7% – or 1 million euro per year.
You can read how ERA approached this steel project in this case study.
Josef Eisele, director of BAUER Maschinen, is extremely satisfied with the collaboration with ERA: 'We have succeeded in combining the steel volumes of our four subsidiaries. In addition, thanks to indexation, Bauer is now better able to cope with price fluctuations.'
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