Mitigating severe Turbulence: Lufthansa Group Procurement vs. COVID-19
As Europe’s largest aviation group, Lufthansa felt the full economic impact of COVID-19. Procurement stepped up both in EBIT protection and in working capital measures. Through intelligent, bespoke management of the supply chain, innovative approaches to challenge specifications and the unrelenting commitment of a 350-strong purchasing team, procurement delivered 453m€ in savings and over 500m€ of extended payment terms. Far from stopping or derailing our “Procurement 2025” vision, the crisis energized and accelerated it. From within the crucible of the crisis an enhanced and robust recognition of the value of the Procurement profession at Lufthansa has been forged.