optimizing your purchases and supply chain in an international environment with the support of the...
TRANSCRIPT
Optimizing your Purchases and Supply Chain in an
International Environment
With the support of the European Commission
Facilitator Profile
• Johan van Hamme (Belgium – 42 years)• Owner of Clear Vantage (www.clear-vantage.eu)• Owner of CU-FACTOR (www.cu-factor.com)• International Purchasing Executive
(Automotive, Engineering, Automation)• References: VW Group, Tenneco, Rockwell• Multilingual (six European languages)
Services:
• Reduce overall costs and improve efficiencies• Development of Supply Chain Organizations• Advanced training sessions in Purchasing• Short-term performance screenings• Cultural interaction in Business
Expertise:
• Cost-reduction methodologies• Products & services knowledge• Change-management• Proven concepts• Six European languages
References:
• Volkswagen, Audi, Seat, Skoda• Tenneco Automotive• Rockwell Automation• Accenture
CU-FACTOR
CU-FACTOR can help you with …
• Cultural differences in business• Best practices in business culture• Preparation of strategies• Effective integration in Europe
CU-FACTOR
CU-FACTOR …
• A knowledge center on European business culture
• Highlights specific in-country characteristics• Provides training sessions, personal assistance
and a practical “tool-box”
CU-FACTOR
CU-FACTOR is focused on …
• Companies outside Europe• European companies expanding cross-border• Private individuals
Purchasing Hints
« TCO » methodologies most commonly used?
• Incumbent sourcing: negotiation with current supplier
• Re-sourcing: switching from current supplier to new supplier for similar range
• Reverse auctions (on-line bidding process): for higher turnovers with multiple suppliers
• Standardisation: reduce complexity and leverage scale- effects
• Value Analysis /Value Engineering (VA/VE): technical review of existing product vs needs
Purchasing Hints
« TCO » methodologies most commonly used?
• Simultaneous Engineering: sharing intelligence amongst suppliers for a final product/service
• Purchasing pool: combining purchasing needs between different buying companies
• Cross- functional process improvements via Six Sigma: statistical approach (non-functional)
• Rebate methodology: periodical credit/ debit as function of turnover vs baseline (stapled %)
Purchasing Hints
« TCO » methodologies most commonly used?
• Clear target setting: define price expectation and response time
• Payment terms review: potential to stretch terms and to ease the transactional process
• Operational process optimalisation (lead- times, inventory, on-time delivery, obsolescence)
• Strong contracts with vendors: creation of well balanced supplier contracts
Purchasing HintsDevelopment of a more « agile » supply chain:
Agile: short lead- time & unpredictable demand:« React and Execute »
Agility via lead-time reduction across:
• Supply: strategic sourcingsynchronization productionco-location
• Internal: reduce non- value added timereduce complexitypostponement
• Demand: JIT replenishmentco- managed inventorydata systems integration
« Low cost country » sourcing
• Pricing
– Price differences (Total Cost of Ownership)– Price stability in time
• Quality
– Product quality and technical precision– Product validation means– Total impact when quality not OK– Product durability and warranty
« Low cost country » sourcing
• Development
– Highly engineered products vs. traditional ones– Spin off effects on aftermarket of OE developments– Technical product changes
« Low cost country » sourcing
• Environment
– Legislations (ex. Reach)– Value of confidentiality (NDA Agreements)– Political climate– Financial strength of supply base– Psychological effects due to increasing
unemployment in Western countries
« Low cost country » sourcing
• Indirect costs
– Travel costs– Time consumed on:
• Supplier evaluation and development• Tool and product validation• Quality assurance• Follow- up actions• Administration
– Warranty costs
Working Together - International Business Culture
Page 21
Communication
Cultural Influences
Company Structure
Work Interaction
CU-FACTOR presentation v1.0 © 2008 Johan van Hamme
Communication
Page 22
CultureLanguage Knowledge
Language Tone
Communication Style
Handshake
CU-FACTOR presentation v1.0 © 2008 Johan van Hamme
Cultural Influences
Page 23CU-FACTOR presentation v1.0 © 2008 Johan van Hamme
Day Starts Dress StyleAppearance
Value
Punctuality Lunch/ Dinner Gift Habits
Company Structure
Page 24CU-FACTOR presentation v1.0 © 2008 Johan van Hamme
Organization Orientation
FlexibilityNetworking Importance
Work Interaction
Page 25CU-FACTOR presentation v1.0 © 2008 Johan van Hamme
Speed of TrustProgram Analysis
Decision Making
Time to Decide
Importance of Rules
Style Uncertainty
Level
