Cost Engineering Manager - Warehousing

Are you interested in helping LEGO build up cost knowledge on warehousing and identify areas of cost opportunity as part of a new Cost Engineering capability within Procurement? Take your next career step at the LEGO Group developing cost calculations on warehousing as we transform our capabilities and those of our suppliers to achieve a more productive, sustainable future.

You will work closely with the Procurement team for Global Distribution to build up extensive cost knowledge and opportunity within the category. This will help the teams build up their understanding of the cost structures for warehousing within distribution centres in many different countries. You will develop Should Cost models for warehouses, identify design-to-cost opportunities for automated warehouse systems and be involved in negotiations working closely with suppliers to agree cost structures while maintaining relationships.

Cost Engineering is a key department within Global Procurement. It is primarily focused on the development of ground up Should Cost calculations to support Procurement in identifying cost opportunities and ultimately ensuring value for money is achieved. The department also has a key role in enhancing the cost capability of buyers. The department is the technical side of the Procurement function, is data driven, and its insights also provide cost data for financial forecasting and product development choices. The department initially touches categories in Europe, U.S., Singapore and China. Achieving reasonable levels of cost adds to the sustainable growth of the LEGO Group.

Core Responsibilities

• Lead change and be a capability builder bringing technical knowledge to the Procurement teams for data-driven negotiations through the use of Cost Engineering data in the Global Distribution team that determines fair and reasonable pricing.
• Create cost models for warehousing operations, including labour, energy, material handling equipment, storage systems and automation.
• Be able to relate warehouse activities to cost structures, understanding the individual cost drivers in the build up of a Should Cost.
• Independently model scenarios across global regions to accurately reflect country variations.
• Guide our 3PL suppliers of automated racking types (e.g. ASRS) to the best design-to-cost solutions.
• Calculate the different costs between various automated storage systems and material handling solutions to guide business cases.
• Conduct motion and time studies in region for cost optimisation and comparison across LDCs.
• Evaluate 3PL proposals, understand rate cards and hold workshops with suppliers on cost idea generation using Should Cost data to identify major cost drivers and areas of waste/opportunity.
• Support procurement discussions and negotiations with cost transparency and value lever arguments.
• Be a strong communicator with exceptional stakeholder management skills bringing cross functions together to realise further cost savings from the data created.

Do you have what it takes?

• BEng or equivalent in Engineering, supply chain management or related technical field.
• At least 5–10 years of experience in logistics, warehousing, transportation, or supply chain analytics, with a proven track record of managing and reducing costs.
• Minimum 5 years relevant experience within a costing environment including an understanding of finance and supply chain in the creation of a Should Cost.
• Deep understanding of warehouse automation and system design, including Automated Storage and Retrieval Systems (AS/RS), Pallet Shuttles, AutoStore, Automated Truck Loading System, Autonomous Mobile Robot (AMR), 6 River Systems and automated packing solutions.
• Experience in working with benchmark data and creating ground-up calculations to optimise logistics costs, including freight, shipping, and floorspace rates to reduce OPEX and CAPEX.
• Strong analytical skills, good technique in and understanding of Cost Estimating principles to guide the team to successful data generation and supplier negotiation.
• Process improvement experience to spot opportunities applying Lean, Six Sigma, or other continuous improvement principles to logistics and warehouse processes.
• Willingness to work and live in London, UK.
• Willingness to travel to suppliers globally at least two months.
• A CSCP (Certified Supply Chain Professional), is preferred, backed up with over 5 years experience in costing.
• ASRS design experience.
• Solid experience or parametric cost tools with good knowledge in data analytics and statistics with application of relevant tools (Excel, Access, SQL, cloud, Power BI etc).
• Proficient English skills.

What’s in it for you?

• Family Care Leave – enhanced paid leave options.
• Insurances – life and disability insurance.
• Wellbeing – resources and benefits for physical and mental wellbeing, opportunities to build community and inspire creativity.
• Colleague Discount – generous discount.
• Bonus – reward through bonus scheme when goals are reached and if eligible.
• Workplace – primary workplace location, hybrid work policy means an average of 3 days per week in office.

The LEGO Group is highly committed to equal employment opportunity and equal pay and seeks to encourage applicants from all backgrounds (sex, gender identity or expression, race/ethnicity, national origin, sexual orientation, disability, age and religion) to apply for roles in our team. The LEGO Group is fully committed to Children’s Rights and Child Wellbeing across the globe. Candidates offered positions with high engagement with children are required to take part in Child Safeguarding Background Screening, as a condition of the offer.