Sourcing

MAG45 is a full service supply chain partner. We support our customers with their challenges in managing MRO (Maintenance, Repair & Operations) and BOM tail (Bill of Material) parts, taking care of sourcing challenges such as: 

  • Fragmented supply base leading to a high transactional workload
  • Availability and compatibility of parts
  • Up-to-date part and catalogue data
  • Need for continuous cost reduction
  • Arranging technical engineering support
  • Standardisation of parts and brands

Our sourcing services are based on nine guarantees for our customers:

1.    One-stop-shop (brand independent)
MAG45 has a unique position in integrated supply as the one-stop-shop for our customers. This capability originates from our company’s history since 1948 as the sourcing and standardisation department within Philips Electronics for all technical items across all required item categories and brands.

Our one-stop-shop solution enables our customers to focus on their core business and key suppliers by consolidating their MRO and BOM tail suppliers at one strategic value add partner.

2.    Effective supply base management
Time spent throughout the organization to effectively manage the supply base tends to be underestimated. Managing personal relationships and contracts with a great number and variety of suppliers and items requires a lot of time and resources. For example to maintain ERP master data and contracts, manage delivery performance and retrieve RFQ’s.

MAG45 has a proven track record in effectively managing the supply base, including performance reviews based on KPIs (Key Performance Indicators). We actively engage with suppliers to make sure that they improve their value add, processes and performance, which allows us to deliver the highest service standards and targets to our customers.

Our effective supply base management enables our customers to fully consolidate their supply base and increase data reliability, supplier performance and quality.

3.    Standardisation (across sites)
Standardisation of parts and brands is typically difficult due to fragmented and localised purchasing; different engineers buy their preferred brands from different preferred suppliers. This leads to complex service processes and end-of-life management with a lack of insight in the supply base.

We proactively analyse the existing customer purchasing and consumption data for standardisation opportunities. When introducing new products to the portfolio, MAG45 promotes standardisation through our on-site quotation desk and webshop with a customer specific parts catalogue.

Additionally, MAG45 can apply a holistic approach by leveraging and standardising parts across our customer’s sites worldwide. This can lead to substantial improvements in asset management and part availability.

4.    Resourcing and re-engineering parts to alternative / substitute brands
MAG45 will proactively propose alternative and substitute products as part of our continuous improvement program for our customers. We actively involve our supplier network and their experience to develop technical initiatives and optimise item costs through:

  • Product substitutions – lower item costs with alternative brands
  • Extended product life time – longer life time of parts
  • OEM part conversion – reducing item costs by buying directly at the source
  • Energy efficiency – saving energy costs
  • Re-engineering – redesigning product requirements to solve quality failures

Together with our customers we prioritize our resourcing initiatives depending on the required validation process and the expected benefits.

Our resourcing initiatives bring year over year benefits to our customers by reducing item costs, increasing product life times, and saving energy costs.

5.    Global sourcing, local availability
There often seems to be a tension between immediate part availability and the cost of the product. MAG45’s global footprint with a local supply base setup offers the solution.

We have access to a worldwide supplier base; from our head office we manage contracts with suppliers in the US, Europe and Asia. At the same time we are able to work with local suppliers to ensure part availability and support in case of rush orders.

When it comes to sourcing, MAG45 ensures that our clients have the best of both worlds – cost efficient when possible, time-sensitive when needed.

6.    Product lifecycle management
All too often, companies are caught by surprise when parts have suddenly reached their end of life. Especially in service, with typically many slow moving parts and a service guarantee for installed base equipment, this can cause unexpected availability issues.

MAG45’s purchasing team has in-depth knowledge of market developments and trends, and continuously monitors product availability in strong cooperation with our supply base. When products are reaching their end of life, we contribute by flagging a “last time buy” to our clients and by proactively looking for alternatives, allowing a seamless replacement.

7.    Data cleaning and maintenance
Item information in ERP systems is often incomplete, out of date and poorly managed. This can lead to disruptions in the supply chain, item availability issues and hick-ups in the order-to-cash process which causes unneeded workload and distractions.

MAG45 ensures that the following checks are regularly made on item level and periodically updated in the customer system:

  • Manufacturer and type number
  • Item descriptions
  • Drawing changes
  • Prices, lead times, units of  measurements and order quantities
  • Item availability

Our data cleaning and maintenance service ensures that our clients have up to date item master data in their system.

8.    Technical support
Technical support is key for our customers. Arranging technical support can be cumbersome for the end-user, needing to contact suppliers and find out the best technical solution for their problem.

MAG45 ensures that the end-user can focus on their core business, and we take care of the technical support through:

  • On-site support by technically skilled customer service employees
  • Our sourcing specialists with extensive product knowledge
  • Using our supply base for in-depth specialist knowledge and support

Additionally, MAG45 organises supplier days, where we bring in suppliers to present the latest technical innovations in targeted presentations to end-users.

Our involvement ensures that our clients have access to the required technical support!

9.    Contracted item pricing
Changing part prices all too often lead to disruptions in the procure-to-pay process and unneeded time wasted on corrections and clarifications.

MAG45 uses fixed item price lists to ensure efficient processes. After joint validation, the price list is uploaded in both the customer and MAG45 ERP system to ensure full price governance and transparency.

Our way of working ensures smooth operational processes, avoiding potential disruptions, and providing transparency and insight.