Otto Hang, Purchasing and Supply Manager at ArcelorMittal, presented by Claudia Rodríguez, Purchasing Manager at Hutchinson, explained that much of the increasing importance of the Purchasing area is due to the fact that on average, two-thirds of companies' expenses pass through this area. Therefore, the effort made to save results in money that can be invested in the company. 

He also commented that the Purchasing area is closely watched for transparency reasons and that it is necessary to innovate and seek out the best suppliers. He emphasized that the buyer's fundamental task is to ensure the supply chain.

He mentioned different tools to measure the buyer's performance, known as KPIs used to measure value contribution to the business: EBITDA, COGS, ROI, SOURCING SPEED, and SG&A, according to the CPO Study 2021 by GEP.

He mentioned that savings are an aspect that generates greater visibility for the Purchasing area, as it is generally something more tangible. However, the work done by the buyer goes beyond this. They must generate a community of suppliers to reach new business opportunities and, at the same time, ensure supplies; manage risks; seek process simplification, and more. 

He closed by recommending digital applications for the area: Big Data + Predictive Analytics, Blockchain, Internet of Things (IoT), RPA, and artificial intelligence. He emphasized that the main advantage of using them is that it reduces the margin of human errors. Additionally, he referred to the belief that these systems are only for large companies, but advised developing proprietary programs if it is not possible to find a platform within the budget.

Otto Hang belongs to the Argentine subsidiary of the largest global steel group. He collaborates from the board of directors of AACAM, the Argentine Association of Purchasing. He holds an Executive MBA from the IAE Business School and is an industrial engineer.

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