Procurement Management

GALAXY COMPANY philosophy is to offer valuable services to the clients and work with them as long-term co-operation that provides outstanding performance in relation to the maintenance, innovation and expansion of built up environments. GALAXY is recognized and acknowledged for the quality and reliability of its products and services as well as for the commitment, knowledge and experience of its employees. This philosophy is also applicable for GALAXY’s suppliers, sub-contractors, and partners. It is GALAXY’s ambition to work on lasting relationships with a selected number of manufacturers, in which entrepreneurship and specific knowledge in the field of product, market and process are leading. The making and implementing of the right choices in this are the success factors of the GALAXY procurement policy. Within GALAXY’s decentralized organizational structure, the procurement column is organized in accordance with the coordination principle. No choice has been made for either centralized procurement or decentralized procurement. The level at which to pursue strategic procurement processes is determined for each sub-segment. The GALAXY model can therefore be best qualified as a ‘coordinated’ approach. The benefits of scales of economy are derived by pursuing procurement activities in such a manner that, on the one hand, local management retains the flexibility and control of its processes and, on the other hand, the entire GALAXY organization enjoys the quantitative and qualitative economies of scale. Due to the nature of the sector in which GALAXY is active, primary processes focus on obtaining and completing projects in as efficient and effective a manner as possible. Accordingly, procurement activities should share this focus. As many projects pursued within and outside a specific region or by an operating company, respectively, have shared procurement segments and processes, combining them can generate substantial and structural procurement economies of scale. This applies to supply/equipment supplies, subcontractors, suppliers involved in the supporting facility management process and intra-organizational supply activities. In addition to costs and risk management, there is a growing emphasis placed on cash management. Accordingly, this theme should be incorporated structurally in various procurement processes (project-based and otherwise). There is growing awareness that the effective interpretation and implementation of these concepts (by, for instance, the procurement column) also positively impact GALAXY’s top-line results (added value/returns) and that this demands a comprehensive supply chain-based approach. Another challenge is how GALAXY can benefit more from the expertise and talents available in its supplier network. When does a procurement process/supplier become early involved in a project? A differentiated approach should be taken in analyzing the supplier network’s potential contribution during the preparation/tendering and specification phase. The terms preferred supplier and preferred customer are key in this. A logical consequence will be the potential development of long-term relationships with unequivocal objectives.