Burckhardt Compression, a global manufacturer of reciprocating compressor technologies and services, relies on a competitive, high-quality and sustainable supplier base. For the Switzerland-based company, nearshoring is becoming more relevant, while also maintaining global sourcing strategies. Agile adapting to external factors and nurturing leadership talent are crucial for Burckhardt Compression. Mauro Callioni-Gysel, Vice President Supply Chain Management and Value Engineering, in conversation with Maximilian Härle of Horváth.
Maximilian Härle: Burckhardt Compression is currently on the road to success – the mid-term sales target until 2027 was recently raised to CHF 1.2 billion due to good annual results and the positive market outlook. What are resulting key priorities for Burckhardt Compression’s Global Procurement organization for this and next year?
Callioni-Gysel / Our key priority is to provide our customers with a globally competitive supplier base that is fully integrated into our product offerings, ensuring price competitiveness and adherence to the highest quality standards in the market. We want to ensure business continuity at any time under all circumstances. By maintaining a qualified and carefully selected supplier portfolio that meets our stringent sustainability requirements, we aim to significantly contribute to the ESG targets we have set for our stakeholders, including shareholders, customers, and employees.
Maximilian Härle: More and more companies are moving away from traditional global sourcing and turning back to regional supply chains with the goal to improve efficiency, flexibility, delivery times and reduce costs. How do you rate the importance of nearshoring/regional supply chains nowadays?
Callioni-Gysel / We are observing a growing trend toward localization requirements, often driven by new government policies across various countries and regions. This requires our functions to adapt our supplier base and develop partnerships in new regions where we currently have no presence. For us, it is extremely important that our quality remains consistent, regardless of who produces the components, and where they are produced. Developing new suppliers can take years, depending on the complexity of the parts involved. Still, we aim to maintain a global sourcing strategy with selected key partners. Especially for components that should not be localized based on our technological or strategic considerations. It's about finding a balance between localization and globalization. Additionally, sustainability criteria now play a crucial role in our sourcing strategy.
Maximilian Härle: Several external forces, such as disruption of supply chains, price volatility, and increasing pressure on sustainability, imply a reinvention of today’s Procurement Operating Model. From your point of view, how must the future Procurement Operating Model change to deal with external impacts, while meeting high business expectations at the same time?
Callioni-Gysel / Resilience and adaptability to external factors are among Burckhardt Compression’s core strengths. Over the past years, we have implemented a robust regional setup, including in Procurement, and demonstrated our readiness to handle extreme geopolitical scenarios. This organizational structure enhances our flexibility, agility and customer-centric approach. Our vendor portfolio is segmented into category groups, which we monitor monthly in terms of performance, risk, and sustainability. Since this year, we have also been assessing our vendors' infrastructure exposure to potential natural catastrophes related to global warming. This analysis is supported by a dedicated data management function, that is specifically working for the supply chain management department. Furthermore, leadership is another critical aspect. Nurturing talent, developing our people, and preparing future leaders is one of the most effective risk mitigation strategies for any department, including supply chain.
Maximilian Härle: As part of the Operating Model, Category Management will become more important than ever before. What makes a future-proof Category Management work, and what changes are required to establish an effective Category Management approach?
Callioni-Gysel / Category managers act as CEOs of their respective category. This modern role requires technical, commercial, financial, and strategic skills. The role is compelling because it offers daily opportunities for learning and growth. The human element plays a crucial role. In fact, the category managers are expected to cultivate strong partnerships with suppliers, establishing framework agreements with those they believe will be valuable assets for Burckhardt Compression in the coming years. Although category management is a relatively new function at Burckhardt Compression compared to others, its impact and accountability are increasingly significant, making the role exceptionally exciting.
Maximilian Härle: Finally, an outlook: When talking about Digital Procurement and (Gen)AI nobody is short of superlatives. Where do you see the biggest potential alongside the Source-to-Pay process to leverage GenAI use cases and create sustainable impact for the business?
Callioni-Gysel / We are at the early stages of a fascinating journey that will transform the way we work. We are exploring potential future scenarios that GenAI can offer, but we are proceeding cautiously. Our approach is grounded in the digital strategy of our corporate departments, which serves as the foundation for our digital procurement strategy. We are collaborating with them to shortlist AI solutions that appear most promising to us. Source-to-Pay is one area under consideration, but it is too early to provide specifics; this will require time. Furthermore, we believe that AI systems should complement, not replace, the competencies of our people. We strive for passion, performance, partnership, and strong relationships—values and behaviors that cannot be replaced by GenAI.
Thank you very much for these interesting insights.
Kontakt
Maximilian Härle