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f+h Intralogistics 5/2016

f+h Intralogistics 5/2016

Study about strategic

Study about strategic supplier management for agile process design The integration and management of suppliers is a key factor in the supply chain for all manufacturing companies. The latest study “Agile Supply Chains – On the move in industry 4.0?” from Candidus Management Consulting gives an insight into existing success models of best practice companies, and shows how these shape their strategy by stringent material and supplier classifications, risk management and “best country sourcing.” Read more about the study. LOGISTICS MANAGEMENT Thus companies develop partnerships with suppliers as a key lever for greater agility in the supply chain, without which they could only remain competitive with difficulty or not at all in the digital age and volatile markets. In 45 in-depth interviews, the Munich-based management consultancy surveyed decision makers (29 % CEO, 40 % COO, 31 % Head/VP of SCM/Logistics/ Purchasing) from producing B2B and B2C businesses in the Germany, It is advisable to define the specific general conditions of each market, customer and product segment from end customer to supplier Stefan Treiber, Managing Director, Candidus Management Consulting Austria and Switzerland region that have at least 100 million euros annual sales. 78 % of surveyed participants included strategic supplier management and integration among the top issues for the sustainability of their businesses. Representatives from the fields of engineering, optometry, automotive diagnostics, electronics, cable, machinery, furniture, solar technology and rail industries participated in the study. The cornerstones of an optimized procurement strategy Using selected best-practice approaches, the study explains all the necessary success factors for a strategic supplier management with minimized supply disruptions and quality problems. “For me, the core issue at this point is a partnership that represents a win-win situation for both sides”, explained one participant, a representative for a supplier in the rail industry, as his company’s objective in dealing with suppliers. Of central importance for all further steps towards a sustainable collaboration is the consistent classification of suppliers and materials on the basis of clearly defined criteria into standard, risk, core f+h Intralogistics 5/2016

01 Purchasing strategy dependent on the supplier and material segment MATERIAL CLASSIFICATION Supply risk RISK MATERIAL STANDARD MATERIAL STRATEGIC MATERIAL CORE MATERIAL Relevance: Purchasing structure Strategic Material Core Material Supplier development / change Supplier development Supplier development / change OPTIMIZATION OF PURCHASING STRATEGY Supplier development SUPPLY CHAIN PARTNERSHIP UTILIZATION OF MARKET POTENTIAL, THEN PARTNERSHIP SUPPLIER CLASSIFICATION Supply risk RISK SUPPLIER STANDARD SUPPLIER STRATEGIC SUPPLIER CORE SUPPLIER Risk Material Standard Material ASSURE CONSTANT SUPPLY PROCURE EFFICIENTLY PRICE REDUCTION Relevance: Strategic value Standard Supplier Risk Supplier Core Supplier Strategic Supplier 02 Esclation process for a supllier in the automotive industry DEFINED ESCALATION PROCESS FOR RISK AND STRATEGIC SUPPLIERS IN REGARDS TO CORE AND STRATEGIC MATERIAL 0. GREEN (P1*) 1. YELLOW (P2*) 2. ORANGE (P3*) 3. RED (P4*) P5* – BLOCKED Objectives achieved are at least 98 % stable Ø Average objective discrepancy in the last 3 months: from 2 % to 5 % Ø Average objective discrepancy in the last 3 months: from 5 % to 10 % Ø Average objective discrepancy in the last 3 months: > 10 % manual Regular contact and positive feedback, partnership if needed Supplier (Escalation) Conversation » Purchasing » Joint determination of action plan Supplier Task Force » Staff function of purchasing organization » Joint improvement of processes at supplier‘s location Resident » External consultancy support paid for by supplier » Optimization project conducted by supplier Classification according to quality and logistical performance (Objective pyramid): P1 free, P2 development phase, P3 under observation, P4 unsatisfactory, P5 blocked About Candidus Candidus Management Consulting is a consulting company in the field of performance improvement and operations management, with headquarters in Munich. The enterprise offers a clear focus on implementation combined with the conceptual standard of a top management consultancy. The Candidus hallmark holistic approach is adapted to each customer situation, thus offering precisely the right solutions. Internationally experienced consultants with in-depth industrial and methodological expertise work together with customers towards measurable and significant performance improvements for sustainable competitive enhancement. and strategiwc groups. This forms the basis for a further process to achieve the most efficient material procurement for standard materials and deep, value-creating partnerships with highly reliable suppliers of strategic materials (Image 01). Consistent supplier classification with specific objectives However, increased supplier reliability must be worked towards proactively: “The development of an integral supplier evaluation and early warning system, as well as contractually anchored target agreements, should be substantial components of any supplier management,” emphasizes Stefan Treiber, CEO of candidus management consulting. A best-practice company in the study has developed a traffic light system: The degree of escalation is derived from the supplier target deviation ratio within the last three months (Image 02). Depending on which of the four escalating levels the vendor is assigned to, different measures are defined to improve cooperation – from an individualized optimization project to building a partnership. Thus, the company ensures stringent supplier classification with a clear objective. Photographs: Candidus/Fotolia www.candidus.com f+h Intralogistics 5/2016