Bosch: Procurement strategy in the digital age

How are Bosch seizing the opportunities offered by digital transformation in sourcing and procurement?

Around 10,000 staff in Bosch purchasing are working alongside 25,000 worldwide suppliers to create their products, but how are they using digital tools to meet the requirements of their customers that are constantly increasing and changing?  They are implementing tapid reactions, innovations, connected working environments and digital supply chains, and are seizing the opportunities offered by digital transformation and also striving to position Bosch as an innovation leader in the Internet of Things (IoT).

Bosch’s purchasing landscape 

  • Supplier relationships in 60 countries 
  • 220 plants
  • 25,000 suppliers
  • 10,000 purchasing associates 
  • €51bn purchasing volume 
  • 48 award winning suppliers at Bosch Global Supplier Awards 2022

Digitalisation 

The Bosch strategy has been by increasing its competitiveness with concrete measures such as increased use of digital and cloud tools. Through digitalization, wthey have made purchasing processes faster, more resource-friendly and more transparent. By 2021, their target was to have more than 85 percent of the global purchasing volume to be handled via cloud and platform solutions. Together with their partners, they use the SupplyOn platform for data acquisition, communication and exchange. This enables Bosch to work closely and to ensure the reliable exchange of information and the quality of their cooperation in the long term – in the sense of efficient project handling based on mutual appreciation and for mutual success.

Dr. Markus Heyn, member of the board of management of the Bosch Group; Dr. Tanja Rückert, member of the board of management of the Bosch Group; Dr. Stefan Hartung, chairman of the board of management of Robert Bosch GmbH; Dr. Markus Forschner, member of the board of management of the Bosch Group; Stefan Grosch, member of the board of management of the Bosch Group and Dr. Christian Fischer, deputy chairman of the board of management of Robert Bosch GmbH at the Bosch annual press conference 2023 (from left to right).

How do Bosch evaluate suppliers?

As part of these relationships with their supply chain, Bosch continuously evaluate the overall performance of their procurement partners. The cost basis is not the only decisive factor they measure, but also the sum of various key figures such as quality, costs, delivery reliability and sustainability. Through this transparent process the most efficient suppliers are appointed as preferred suppliers, they participate to a greater extent in new projects, are involved in development projects at an early stage and grow with the company as a market leader. To honour outstanding performance and further strengthen the reputation of their most efficient suppliers, Bosch have been awarding them with the Bosch Global Supplier Award since 1987.

Digitisation areas for the future 

Analytics 

Through analytics, Bosch are using the analysis of internal data to power business decisions.

Smart automation

Through the implementation of smart automation Bosch are designing more efficient processes and improving their cost structures.

Digital innovation 

Using innovations such as automatic speech and text recognition to provide new possibilities for evaluating data and using it to allow constant improvement. 

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Other magazines that may be of interest - Supply Chain Magazine | Sustainability Magazine

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