Supplier selection for Dettson: Combining procurement expertise and electrical engineering support

Project

Merkur worked with Dettson, a Sherbrooke-based company specializing in the design of central forced-air systems and water heaters, to finalize the development of an electronic control board dedicated to a new family of electric boilers.

Customer’s Problem :

Dettson wanted to roll out this new boiler family very quickly, but was faced with a lack of internal resources and a very tight schedule.

Customer Need :

Dettson expressed the need for an electronics engineering resource. After understanding the context, Merkur decided that procurement expertise would be more appropriate to bring the project to fruition, while retaining the technical expertise of electronic engineering.

Client

Dettson

Industry

Manufacturing

Expertise used

Supply Chain

Electrical Enginnering

" Merkur quickly made resources available to us for an important and urgent project. The exchanges were quick, which enabled us to complete this project in record time. Even though the bids fell short of the target, Philippe went back to the supplier and asked for additional discounts. "

Philippe Verhas

R&D Director, Dettson

Key results

Economy

Cost reduction vs. customer's estimated budget

Time-to-market

The customer wanted to roll out their new products before the high season, and this was respected

Competence

Experience in reading technical specifications provided additional depth to complete the mandate

Project highlights

Taking charge of the procurement project

Understand the customer's qualification criteria “for the manufacture and assembly of an electronic board dedicated to a new family of electric boilers”, while respecting the customer's budget and deadline

Search, audit and shortlist 3 suppliers

Define key project issues
Understand the required product
Target and suggest modifications to technical specifications to the customer
Negotiate and seek gains with the selected supplier

Strategic purchasing tools and techniques

Bidding and supplier selection tools (selection grid, bid templates, scoring and supplier selection recommendations)
Pre-qualification audit. Ensure compliance with the customer's quality criteria for supplier selection
Analyze technical specifications from each supplier

Reactivity: mobilizing resources for an urgent project, enabling rapid and efficient execution

The project provided more than one alternative to allow agility in case of force majeure
Merkur's engineering and procurement departments worked closely with the customer to bring the project to completion on time
Keeping the mandate confidential and establishing a good business relationship with bidders

" With a very tight deadline and my extensive experience, I was able to immediately and easily identify Mr. Verhas' project challenges. With my collaborative approach, I won the trust of Dettson and the bidders. This enabled me to make further savings on all future Dettson electronic board projects "

Philippe Pelland

Strategic buyer at Merkur