Innovative Supplier Management: Value Creation in Global Supply Chains

Foreword
Contents
About the Author
List of Abbreviations
List of Figures
List of Tables
1: Supplier Management, Purchasing and Procurement
1.1 Classification and Value of Supplier Management
1.1.1 Importance of Supply and Value Chains
1.1.2 Value Creation and Value Networks
1.1.3 Value Chain with Suppliers (Upstream) and Customers (Downstream)
1.1.4 Value Chain According to Porter
1.1.5 Value Creation and Waste
1.2 Types of Waste in the Value Chain
1.2.1 Waste Due to Transport
1.2.2 Waste Due to Inventory and Stocks
1.2.3 Waste Due to Motion and Unnecessary Movements
1.2.4 Waste Due to Waiting Times
1.2.5 Waste Due to Overproduction
1.2.6 Waste Due to Redundant Processes and Over-Processing
1.2.7 Waste Due to Defects
1.3 Tasks and Delimitation of Supplier Management
1.3.1 Tasks of Supplier Management
1.3.2 Differentiation of Supplier Management from Classic Purchasing
1.3.3 Procurement and Procurement Logistics
1.4 Case Study: Sustainable Supplier Management in the BMW Group
References
Further Reading
2: Transformation and Cultural Change Towards Innovative Supplier Management
2.1 Transformation Requirements in Supplier Management
2.2 Supplier Management as a Competitive Advantage for the Company
2.3 Keiretsu-Based Supplier Management
2.4 Supplier Management as an Initiator of Cultural Change
2.4.1 Stories and Myths
2.4.2 Symbols
2.4.3 Power Structures
2.4.4 Organisational Structures
2.4.5 Control Systems
2.4.6 Rituals and Routines
2.5 Culture and Elements of Lean Management in Modern Supplier Management
2.5.1 Lean Principles and Lean Management as Part of Supplier Management
2.5.2 Change Towards an Open and Creative Enterprise (Chiiku)
2.5.3 Leadership in Lean Management (Tokuiku)
2.5.4 Mental and Physical Strength in Lean Management (Taiiku)
2.5.5 Implementation of Ideas Through Employee Involvement (Yattakoto)
2.6 Case Study: Leadership in Toyota Motor Corporation
References
3: Supplier Management as Part of the Corporate Strategy
3.1 Supplier Management as a Strategic Competitive Advantage of Corporate Strategy
3.1.1 Strategic Analysis
3.1.2 Strategic Selection
3.1.3 Strategic Implementation
3.1.4 Designing the Strategic Direction: Strategic Pyramid
3.1.4.1 Mission and Vision
3.1.4.2 Values and Values Concepts
3.1.4.3 Generic Goals and Specific Objectives
3.1.4.4 Core Competencies
3.1.4.5 Strategic Implementation of the Objectives
3.1.4.6 Infrastructure
3.1.4.7 Performance Review and Execution (Target/Actual Analysis)
3.2 Internationalization of Supplier Management
3.3 Supplier Management as a Key Role in the COVID 19 Pandemic
3.4 Case Study: Siemens and the Selection of Suppliers via SCM Star
References
4: Phases of Supplier Management
4.1 Supplier Management as a Cross-sectional Function: Integration of All Functions
4.2 Supplier Strategy
4.2.1 Subject Matter and Elements of the Supplier Strategy
4.2.2 Supplier Classification
4.2.3 Material Group Strategies
4.2.4 Make-or-Buy Strategies
4.2.5 ABC-XYZ Analysis and Strategies
4.2.6 Internationalisation Strategies
4.2.7 Sustainability Strategies
4.2.8 Digitisation Strategies
4.3 Supplier Selection
4.3.1 Shifting of Peripheral Competences to Suppliers
4.3.2 Minimising Risks in the Selection of Suppliers
4.3.3 Criteria and Supplier Selection Matrix
4.4 Supplier Evaluation
4.4.1 Subject of Supplier Evaluation
4.4.2 Selecting the Right Criteria for Supplier Evaluation
4.4.3 Supplier Evaluation as a Control Tool in Supplier Management
4.5 Supplier Development
4.5.1 Object of Supplier Development
4.5.2 Strategic Supplier Development
4.5.3 Preventive Supplier Development
4.5.4 Reactive Supplier Development
4.6 Supplier Integration
4.6.1 Subject of Supplier Integration
4.6.2 Supplier Integration Through Coaching and Collaboration
4.6.3 Supplier Integration Through International Purchasing Offices
4.7 Supplier Controlling
4.8 Case Study: Volvo Opts for In-House Production in the Field of Electromobility
References
5: Organization in Supplier Management
5.1 Supplier Management as a Key Function in the Company
5.2 Structure and Process Organisation of Supplier Management
5.2.1 Object of the Organizational Plan
5.2.2 Line Organisation
5.2.3 Project Organisation
5.2.4 Divisional Organisation
5.2.5 Functional Organisation
5.2.6 Matrix Organisation
5.2.7 Agile Form of Organisation
5.2.8 Virtual Forms of Organisation
5.3 Process Organization of Supplier Management
5.4 Supplier Management and Digitalization in Indirect Purchasing
5.5 Strategic Purchasing in Supplier Management
5.6 Operational Purchasing in Supplier Management
5.7 Case Study: Global Supplier Management at Bombardier Transportation
References
6: Competence Requirements in Supplier Management
6.1 The Supplier Manager as Interface to the Supplier
6.1.1 Changed Framework Conditions Lead to New Competence Requirements
6.1.2 The Supplier Manager as Single Point of Contact
6.1.3 Growing Internationalisation in Procurement
6.2 Networking Ability of Supplier Managers
6.3 Regular Development Through Training and Qualifications
6.4 Case Study: Risk-oriented Management of Suppliers at the Meyer Werft Shipyard
7: Control Groups and Escalation Levels in Supplier Management
7.1 Supplier Management as a Central Control Function
7.1.1 Supplier Steering Group
7.1.2 Supplier Manager as Central Contact Person
7.1.3 Supplier Management Workshops
7.1.4 Supplier File
7.1.5 Supplier Cockpit
7.2 Suppliers’ Day
7.3 Supplier Academy
7.4 Escalation Levels in Supplier Management
7.5 Case Study: Supplier Management at Porsche and the New 911
References
Further Reading
8: Lean Methods in Supplier Management
8.1 Lean Principles in Lean Management
8.1.1 Zero-Defect Principle
8.1.2 Drawing Principle
8.1.3 Flow Principle
8.1.4 Clock Principle
8.2 Harmonisation and Levelling of the Production Flow: Heijunka
8.3 Yamazumi Diagrams
8.4 Intelligent Automation: Jidoka (自働化)
8.5 Visualization in Lean Management
8.6 Shadow Boards
8.7 Andon
8.8 Total Productive Maintenance (TPM)
8.9 Total Equipment Effectiveness (GAE)
8.10 Lean Management on the Spot: Gemba, Genjitsu, Genchi, Gembutso
8.11 Focus on Essential Elements: Muda, Mura, Muri
8.12 Error Prevention: Poka Yoke
8.13 Implementation of an Ideal Working Environment: 3 K Principle
8.14 Lean Management as a Consensus-based Basis for Rapid Project Implementations
8.15 Health and Safety
8.16 Case Study: Implementation of the Lean Production System at Mercedes-Benz
References
9: Audits and Supplier Analyses
9.1 Audits and Quality Management Systems
9.1.1 Concept of the Audit
9.1.2 System Audits
9.1.3 Process Audits
9.1.4 Product Audits
9.1.5 Control Audits
9.1.6 Other Audits
9.2 Case Study: 5S Audits in the Berlin-Kindl-Schultheiss Brewery
References
10: Corporate Social Responsibility (CSR) and Ethics in Supplier Management
10.1 Definition of CSR and Ethics
10.1.1 4-Step-CSR Pyramid According to Caroll
10.1.2 Two-Dimensional Model According to Quazi and O’Brien
10.1.3 Core Area Model According to Carroll and Schwartz
10.1.4 Sustainability and the Three-Pillar Model
10.1.5 Corporate Citizenship (CC)
10.2 Megatrends with an Impact on Supplier Management
10.3 The Need for CSR in Supplier Management
10.4 Maturity Analyses of CSR in Supplier Management
10.5 Supplier Development in the Area of CSR
10.6 Global Compact Principles
10.7 Case Study: Sustainability at VW
References
Further Reading
11: Lean Management in the Service Sector
11.1 Characteristics of Services
11.1.1 Intangible Assets
11.1.2 Services Are Not Storable
11.1.3 Uniqueness (Heterogeneity)
11.1.4 Inseparability
11.1.5 Variability
11.1.6 Perishability
11.1.7 No Ownership
11.2 Application of Lean Management to Services
11.3 Increasing the Visible Added Value of Services
11.4 Case Study: Lean Ordering Process in Japanese Restaurant
References
Further Reading
12: Supplier Management for Suppliers with Financial Difficulties
12.1 Signs of Financial Difficulties
12.1.1 Phases of a Financial Crisis
12.1.2 Strategic Crisis
12.1.3 Profitability Crisis
12.1.4 Liquidity Crisis
12.1.5 Insolvency
12.2 Recommendations for the Elimination of Financial Difficulties
12.2.1 Restructuring
12.2.2 Measures to Increase Liquidity
12.2.3 Increase in Equity Capital
12.2.4 Increase in Long-Term Liabilities
12.2.5 Sale of Fixed Assets and Leaseback
12.2.6 Factoring
12.2.7 Inventory Optimisation
12.2.8 Conversion of Debt Capital into Equity Capital
12.2.9 Debt Rescheduling
12.3 Reorganisation or Restructuring Measures
12.3.1 Object of Restructuring
12.3.2 Strategic Restructuring
12.3.3 Structural Restructuring
12.3.4 Restructuring to Improve Profits
12.3.5 Financial Restructuring
12.4 Tools to Identify Financial Difficulties in Supplier Management
12.4.1 Identifying Financial Difficulties
12.4.2 Creditreform
12.4.3 Creditsafe
12.4.4 VDA Rating
12.4.5 Dun & Bradstreet
12.4.6 Rapid Ratings: Financial Risk Management
12.5 Case Study: Insolvency of the Solarworld Company
References
13: Lean Management in Projects
13.1 Lean Project Management
13.2 Critical Success Factors in Projects
13.2.1 Key Criteria in Projects
13.2.2 Integration Management
13.2.3 Scope and Performance Management
13.2.4 Time and Schedule Management
13.2.5 Cost Management
13.2.6 Quality Management
13.2.7 Human Resources Management
13.2.8 Communication Management
13.2.9 Risk Management
13.2.10 Procurement Management
13.3 Recommendations for Projects
13.4 Case Study: Collaboration Between Knorr-Bremse and Continental for the Development of an Automated Driving System
References
14: Innovation Management as a Key Task in Supplier Management
14.1 Innovation Management as a Sub-task of Supplier Management
14.2 Strategic Relevance and Attractiveness
14.3 Resource Intensity
14.4 Future Potential Analysis
14.5 Tasks and Fields of Action in Innovation Management
14.6 Improvements and Innovations
14.7 Social Responsibility as Part of Innovation Management
14.8 Innovation Management and Green Marketing
14.9 Case Study: Innovations Through Design Thinking at Continental
References
15: Claim Management and Subsequent Claims in the Event of Default
15.1 Claim Management and Subsequent Claim Management
15.2 Contractual Recommendations
15.3 Defensive and Offensive Claim Strategies
15.4 Types of Arbitration
15.5 International Arbitration Tribunals
15.6 Case Study: Demand Management at Deutsche Bahn and Bombardier
References
16: Change Management to Supplier Management
16.1 Definition of Change Management
16.2 Change Management According to Lewin
16.2.1 Change in Phases
16.2.2 Phase: Unfreezing – Changing, Modification – Freezing
16.2.3 The Human Factor Is Decisive
16.3 Change Management Curve According to Kübler-Ross
16.4 Change Management According to Kotter
16.5 Change Management According to McKinsey
16.5.1 Description of the McKinsey 7S Model
16.5.2 Hard and Soft Factors in Changes
16.6 Change Management and Personalities
16.6.1 Readiness for the Change to Modern Supplier Management
16.6.2 Visionaries and Missionaries
16.6.3 Pioneers
16.6.4 Active Supporters
16.6.5 Opportunists
16.6.6 Underground Fighters
16.6.7 Open Resisters
16.6.8 Emigrants
16.7 Dealing with Resistance
16.7.1 First Strategy: Analyse Internal Stakeholder Groups
16.7.2 Second Strategy: Explain the Background of the Project
16.7.3 Third Strategy: Dealing with Opponents Properly
16.7.4 Fourth Strategy: Preserving and Developing What Is Good
16.7.5 Fifth Strategy: Raising Awareness of the “Valley of Tears”
16.7.6 Sixth Strategy: Inform Individually
16.8 Case Study: Corporate Culture at Toyota
References
17: Tools in Supplier Management to Identify Waste
17.1 Ishikawa Diagram
17.2 Material
17.3 Supplier Audits and Workshops
17.4 Brainstorming
17.5 Pareto Analysis
17.6 Correlation Diagram
17.7 Network Diagram
17.8 Problem Decision Plan
17.9 W-Questions
17.10 Flow Chart
17.11 Pro and Contra Lists
17.12 Failure Mode and Effect Analysis (FMEA)
17.13 Statistical Process Control
17.14 Mind Mapping
17.15 Quality Control Chart (QRC)
17.16 Portfolio
17.17 Tree Diagram
17.18 Case Study: Ishikawa Diagram at Porsche
Reference
18: Outlook and Future Vision for Supplier Management
18.1 Supplier Management as a Central Interface in the Company
18.2 Automation and Digitalization Trends in Supplier Management
18.3 Changing Competence Requirements in Supplier Management
18.4 Internationalisation of Value Chains
18.5 Case Study: AirSupply and SupplyOn as Integrated Value Creation Systems
References
19: Glossary