You start as Senior buyer with a builder of super yachts. This company designs and builds these yachts completely in-house and is organized in a projects / matrix structure.

The category “Interior” is one of the most important aspects in the building of the ship and to a large extent determine the look and feel thereof and has a major impact on the customer’s perception of the ship. A yacht is a showpiece and the interior is an important part thereof. The interior comprises the supply of high-grade materials for the design of the living and working quarters for the crew and the guests, the finishing of the deck and the furniture. The category ‘interior’ is to a large degree determined by the customer and his architect. The senior buyer communicates with the project leader interior and with production planning.

Interior / Finishing

The interior is built into the yachts by “interior production”, which is organized into the sections wood, machining, assembly, finishing (coating) and fitting. The joinery comprises some 50 employees, incl. 4 foremen and 2 project leaders. These are top crafsmen, who can not only make furniture that is fit for use in extreme weather conditions and heavy seas, but can also build it into the ship.

Before varnishing it is assembled as a mock up and after varnishing it is approved by the customer’s construction advisor. He approves all materials applied before maching and in later phases. The slightest mistake will be reason for rejection, rework or replacement. He has the authority to veto anything that is built onto or into the ship.

Within the department there is a lot of market- and supplier knowledge. Usually only preferred suppliers are hired, often single source and with whom there is a longlasting relationship. Up to today the Procurement (sourcing, contracting, vendor management) for this category is done by the project leaders themself.

Variables

1. The interior department is under great pressure regarding planning and meticulous commissioning of the final product(s).
2. Market- and supplier know-how are spread over the entire department.
3. Procurement does not have the category expertise, in terms of suppliers, market, materials used and the availability thereof (mainly teak wood)
4. There are many long lasting relations with ofthe single source suppliers
5. Price is not the determining factor, quality is.

Questions

1. Which are your stakeholders?
2. What risks do you see
3. What is your plan when starting as senior buyer for this category ? Indicate what first steps/measures/actions you will take during the first 3 months, thereby taking into account the following:
   1. you need to uphold your buy-in with your stakeholders
   2. in- and external management of the category (“educating” the internal organization and the suppliers)
   3. single source suppliers with whom there are long lasting relations
4. What type of contracts will you make and how do you assure that these completely facilitate production?