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Supplier Convention Days
Experience immediatecost impact with ourelaborate Supplier
Days
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Supplier Convention DaysDelivering immediate impact on cost and innovation
Our approachUtilizing our proven Supplier Convention Days methodology focusing on costreduction and Design to Cost opportunities by enabling short-term negotiationresults and optimizing the supplier base.
The impactRealization of short-term contribution to net income (=savings!) by well preparednegotiations including clear agenda, management attention and defined roles.Additional savings through cross-functional involvement resulting in more than 94identified Design to Cost measures.
The challengeThe economic decline was hitting a Siemens business unit / segment significantly.Procurement had little experience in negotiating prices and the cooperationbetween Procurement and Engineering was limited. Therefore, they requiredsupport in designing and executing professional Supplier Conventions Days.
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A modular concept covers a variety of targets
• Official welcome, presidential address• "Pain speech"• Ideas for improvement
"Conventionalnegotiations"
Parallelnegotiations
ANCs¹)
(eBiddings/eAuctions)
Design tocost-workshops
Cao-workshops
Jointcreativityworkshop
Supplier fair
PVC 2) -negotiations
GVS 3) - orlocalization-workshops
Supplier eva-luation anddevelopmentworkshop
Siemens fair(introductionof BUs)
Suppliercompanypresentations
• Joint summary of measures• Lessons learned and development of future strategy• Roadmap for implementation incl. tracking
Managementspeeches
Possiblemodules(selected)
Continuousfollow-up
• Clear communication of expectations• Information and appreciation• Management attention and support
• Individual or common workshops (depending on target)• Cross-functional teams, where required• "One Company": Aligned strategies, one face to the supplier
• Outcome of workshops: Signed agreements• Internal follow-up strongly required• Future strategy based on past experiences
1) ANC = Advanced Negotiation Concept, 2) PVC = Price Variation Clause, 3) GVS = Global Value Sourcing
Supplier Convention – Set-up configuration
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Our proven standard process ensures success
Supplier Convention – Approach
01Concept Analysis Event Design Event Execution Final analysisand conclusions
• Define detailed objectives,scope, timeline, approach,location and responsibilities
• Conduct cross-functionalkick-off meeting
• Select and analyze existingsuppliers and/or challengers
• Organize event• Prepare and send invitation
letter to selected suppliers• Collect and evaluate
supplier feedback
• Conduct analysis of:• Demand• Price development,
cost drivers• Contract situation• Market• Technologies and
competencesof suppliers
• Status supplier evaluation• Strategic aspects
• Identify potentiallevers per supplier
• Define individual materialfield targets
• Cross-functional strategyworkshop to tailor eventdesign
• Define and train Siemensstaff and roles
• Set scene and message bysenior mgmt. speeches toexpress strategic importance
• Formulate over-all eventstrategy focusing on fastaction and limited time fordecision making
• Start the event withan introduction andoverview of course
• Present speeches• Break out participants
into groups accordingto event design
• Strict time mgmt. and assurethe agreed upon eventdesign is followed
• Tracking of individualwork sessions result
• Result presentation andagreement
• Analyze and evaluateachieved results and mapto initial objectives
• Derive measuresto close potential gaps
• Document and presentresults to senior mgmt.
• Formal communicationto participants
Objectives, participants,timeline and locationof the event are defined
Supplier dossiers arecomplete and leversfor negotiation identified(if applicable)
Event ready for execution:• Strategy formulated• Roles trained
Event completed accordingto design; measures and duedates agreed
Event resultsanalyzed/evaluatedand communicated
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