Also in this issue

2017 event calendarLean 4.0

Transport costs

When heroes are needed No failures in emergencies:

Maintenance & repair with service excellence

Q2 / 2017 edition

Your magazine for Procurement & Logistics

32

EditorialDrozak on the spot

In the past, service technicians’ ­efficiency­suffered­due­to­underdevel-oped­processes­and­a­lack­of­transpar-ency.­While­companies­have­ increas-ingly­ countered­ this­ through­ better­planning­and­the­use­of­ intelligent­re-placement-part­provisioning­systems,­­service-sector­ productivity­ continues­to­have­immense­underutilized­poten-tial.­This­is­an­exciting­theme,­because­profit­in­many­companies­depends­on­the­efficiency­and­productivity­of­their­service­organizations.

Companies­have­recently­been­forced­to­engage­in­far-reaching­optimization­within­their­service­organizations,­from­incident­ detection­ to­ on-site­ trouble-shooting,­by­ the­use­of­new­ technol-ogies­such­as­pay-per-use­concepts.­For­ instance­ hospitals­ no­ longer­­purchase­ dialysis­ machines,­ but­ in-stead­pay­a­usage­fee­per­ treatment.­Similarly,­contracts­are­signed­for­ the­trouble-free­elevator­conveyance­of­a­certain­number­of­people­per­month.

To­ the­ extent­ possible,­ then,­ the­­rectification­ of­ faults­ takes­ place­ be-fore­ systems­ actually­ malfunction.­Thanks­to­increasing­digitization,­there­are­numerous­solutions­ for­ this,­such­as­online­diagnosis­and­fault-clearing,­digital­ system­ histories­ that­ identify­

possible­ causes­ of­ failure,­ and­ ear-ly­ fault­ recognition.­ This­ could­ even­involve­ a­ signal­ being­ sent­ as­ soon­as­ brake­ linings­ are­ 80%­ gone,­ for­­example,­ rather­ than­ only­ when­ the­brakes­fail.

Service­technicians­are­provided­with­this­ information­ in­ an­optiumum­way.­Thanks­ to­ GPS­ tracking­ and­ digital­transparency,­ the­ technician­with­ the­right­ skills­ is­ guided­ to­ the­ job­ site.­­During­ his­ work,­ the­ system­ auto-matically­ configures­ his­ next­ jobs­ in­a­ ­logistically­ optimal­ form:­ Does­ the­technician­have­ the­necessary­ skills?­Is­ the­ next­ customer­ logistically­ con-venient­so­as­to­minimize­travel­time?­Does­the­technician­have­all­necessary­replacement­parts­in­the­service­vehi-cle,­or­can­ they­be­ transported­ there­in­ a­ timely­ fashion?­ For­ the­ smooth­provisioning­ of­ replacement­ parts,­ it­is­necessary­to­have­the­right­partners­for­ transport,­ distribution­ ­networks­and­repairs.­

If­ a­ malfunction­ nevertheless­ takes­place,­ it­ is­ ideally­ remedied­ on­ the­first­ visit.­ There­ are­ numerous­ effec-tive­ solutions­ enabling­ the­ service­process­ as­ a­whole­ to­ function­ even­if­ the­ parts­ are­ not­ on­ site­ or­ in­ the­vehicle.­For­example,­service­vehicles­

can­ be­ equipped­ overnight,­ or­ the­needed­parts­can­be­supplied­through­an­ automatic­ follow-up­ delivery,­ or­ordered­using­ tablets­and­ the­specif-ic­ ­technical­ system’s­ online­ replace-ment-parts­ catalog.­The­most­ impor-tant­parallel­goals­here­are­ to­ reduce­reaction­times­and­eliminate­the­need­to­interface­with­work­schedulers­and­internal­service­technicians.­

The­ service­ organization­ is­ responsi-ble­for­this­high­level­of­technical­avail-ability,­along­with­its­own­departmental­turnover,­ replacement-part­ provision-ing­ strategies­ and­ service-technician­deployment­plans.­In­order­to­optimize­performance­ on­ an­ ongoing­ basis,­ it­must­continually­implement­new­solu-tions­and­tirelessly­search­for­creative­paths­to­further­optimization.­Because­from­good­service­come­strong­profits!

On­this­note,­ I­wish­you­a­successful­Q2,

­ Dr.­Jacek­Drozak

“From service comes profit!”Dr. Jacek Drozak, founder and CEO of Drozak Consulting

MAY 15–17 MAY 2017

“World­Procurement­Congress­in­London“ Forum­for­knowledge­exchange­and­networking,­

with­a­focus­on­future­procurement­trends

AUGUST 30–31 AUGUST 2017

“Railway­Forum­in­Berlin“ Competitiveness­2025

The­mobility­sector’s­innovation­agenda

OCTOBER 25–27 OCTOBER 2017

“BVL­Logistics­Congress­in­Berlin“ Industry­conference­for­logistics­and­supply-chain­issues

NOVEMBER 08–10 NOVEMBER 2017

“BME­Symposium­in­Berlin“ Europe‘s­largest­buyers’­congress­for­purchasers­and­supply­managers

Drozak on the spot Save the dates: 2017 event calendar

54

Service excellenceService excellence

Ensuring­strong­customer­satisfaction,­and­ thus­ long-term­ customer­ loyalty­to­ the­ company,­ should­ always­ be­ a­­service­ organization’s­ focus.­ At­ the­same­ time,­ the­service­and­aftermar-ket­ sectors­ are­ economically­ a­ very­significant­market­for­many­industries.­However,­ service­ expectations­ for­service­ providers­ and­ suppliers­ are­currently­ undergoing­ a­ fundamental­change.­

Under­ the­ influence­ of­ ­increasing­­globalization,­ and­ driven­ by­ the­­demands­ of­ business­ development,­the­ service­ sector­ is­ being­ forced­ to­review­ its­ organization­ on­ a­ continu-ous­basis.­The­availability­of­ replace-ment­ parts­ and­ service­ technicians­must­ be­ assured­ even­ in­ growing­markets.­ Moreover,­ increasing­ digiti-zation­ is­ providing­ opportunities­ for­monitoring­ or­ early­ fault­ detection­for­ technical­ systems.­ However,­ this­only­ makes­ sense­ if­ the­ service­ or-ganization­ is­ constituted­ so­ that­ the­trouble­shooting­process­can­also­take­place­promptly.­Service­excellence­ in­­globally­ competitive,­ highly­ digitized­markets­ demands­ a­ rethinking­within­service­organizations.

Diverse­ sectors­ such­ as­ medical­technology,­ telecommunications,­IT,­ ­elevator­ engineering,­ and­ energy­supply­have­ in­common­ the­ fact­ that­many­ service­ technicians­ are­ neces-sary­ in­ the­field­to­ensure­continuous­technical­availability­of­their­products.­In­ addition­ to­ the­ fundamental­ deci-sion-making­ criteria­ defined­by­ every­business­ when­ buying­ a­ technical­system,­ technical­ availability­ and­ an­associated­ trouble-free­ service­ and­maintenance­policy­serve­as­decisive­factors­ in­ investment­ decisions.­ The­

Service Excellence Take advantage of digitization’s opportunities –

offer the best service possible

customer­ can­ be­ satisfied­ only­ if­ the­fundamental­ requirements­ for­ techni-cal­ availability­ throughout­ daily­ oper-ations,­as­specified­ in­ the­ investment­contract,­are­guaranteed.­The­various­business­models­in­different­sectors­–­such­as­pay­per­use,­leasing­models,­or­prime­value­added­in­the­aftermar-ket­(with­consumable­materials­includ-ed)­ –­ make­ it­ additionally­ clear­ how­important­ service­ excellence­ can­ be­for­ companies.­The­goals­ associated­with­service­excellence­are:

» Generation­of­robust­customer­satisfaction,­and­thus­last-ing­­customer­loyalty,­through­­excellent­service­

» High­degree­of­efficiency­across­the­entire­aftermarket­organization

» Optimized­operating­­conditions­for­external­support­of­the­­company’s­service­offerings

» Use­of­digitization­to­enable­­delivery­of­better­service­thanks­to­greater­transparency,­or­to­allow­the­development­of­new­service­products

To­be­able­to­fulfill­these­requirements­today­and­ in­ the­ future,­a­continuous­process­of­optimization­ is­necessary.­In­ this­ regard,­ it­ is­ crucial­ to­ provide­customers­ with­ the­ same­ level­ of­quality­and­reliability­both­for­planned­service­processes­and­ for­unplanned­troubleshooting­and­maintenance.

How does this happen?

>>­On­the­next­page­>>

At the right time, at the right place

Digitization makes it possible: With early-fault-detection systems and the precise scheduling and deployment of replacement parts,

technicians and their equipment, malfunctions can be remedied

without downtime or even be avoided.

Increase of service technician’s productivity by more than

1 hr. / working day

76

Service excellenceService excellence

Avoiding unplanned maintenance

In­ order­ to­ minimize­ the­ enormous­organizational­ efforts­ needed,­ un-planned­maintenance­visits­must­also­be­minimized.­The­new­opportunities­provided­ by­ digitization­ and­ sensor­technologies­are­helpful­in­this­regard.­For­ example,­ a­ reading­ of­ elevated­power­use­by­a­motor­can­indicate­an­impending­ motor­ malfunction,­ while­measuring­crossing­data­or­switching­operations­at­switches­can­ indicate­a­higher-than-planned­ degree­ of­ use.­Service­or­maintenance­work­can­be­actively­ initiated­before­an­unplanned­system­ outage­ occurs.­ If­ these­ find-ings­ are­ combined­with­ a­ remote­ di-agnosis­ or­ –­ to­ the­ degree­ possible­–­ with­ ­remote­ servicing­ possibilities,­then­ these­ fault­ warnings­ or­ notifi-cations­ can­ be­ even­ more­ efficiently­handled.

Efficient deployment of service technicians

The­ deployment­ of­ service­ techni-cians­ can­ now­ be­ planned.­ In­ this­­regard,­the­goal­should­be­to­increase­technicians’­ productivity­ to­ a­ maxi-mum.­Various­approaches­ should­be­­considered­here,­such­as:

» Reducing­unproductive­travel­by­the service technician

» Eliminating­multiple­visits­by­the­technician

» Ensuring­information­on­system­history­and­error­notifications­is­available­

In­ many­ service­ organizations,­ ser-vice­ technicians­ must­ still­ pick­ up­necessary­ replacement­ parts­ from­decentralized­ warehouses.­ This­ is­ a­

waste­ of­ valuable­ productive­ service­capacity­ by­ highly­ trained­ technical­workers.­Here,­ the­ state­ of­ the­ art­ is­represented­by­provisioning­concepts­that­ enable­ the­ appropriate­ replace-ment­parts­to­be­loaded­in­the­service­­vehicle’s­ trunk­ overnight.­ Thanks­ to­the­ opportunities­ offered­ by­ digitiza-tion,­ growing­ pains­ like­ looking­ for­ a­vehicle’s­parking­spot­or­key­manage-ment­for­vehicles­are­also­things­of­the­past.­With­ the­ help­ of­ tools­ like­GPS­location­ or­ time-limited­ access­ rights­–­for­example,­with­a­code­for­the­ser-vice­ vehicle­ –­ ­approaches­used­daily­in­the­car-sharing­industry­can­also­be­used­for­the­delivery­of­needed­parts­to­ service-­vehicle­ trunks.­ Combined­with­ repair­ kits­ for­ certain­ types­ of­malfunctions,­ and­ return­ processes­for­ unused­ kit­ components­ or­ repair­parts­ that­ can­be­ integrated­with­ the­vehicle-trunk­ deliveries,­ technicians’­productivity­ can­ be­ significantly­ in-creased.­ In­ this­ regard,­ a­ productivi-ty­ increase­of­more­ than­an­hour­per­workday­is­not­uncommon.

Optimized scheduling

With­ the­ help­ of­GPS­ location­ of­ the­service­ vehicle,­ as­ well­ as­ a­ precise­understanding­ of­ the­ service­ skills­(such­as­specific­general­or­ technical­knowledge­ regarding­ security-related­work),­ technicians­ can­ be­ optimally­directed­ using­ automatic­ scheduling­tools.­ Troubleshooting­ productivity­can­ be­ further­ improved­ by­ sending­system­ specifics­ or­ typical­ solutions­to­ the­anticipated­ type­of­problem­ to­the­ technician’s­ tablet.­ By­ using­ the­specific­ system’s­ replacement-part­catalog,­the­technician­can­also­order­replacement­ parts­ directly­ from­ the­

warehouse,­without­a­detour­ through­the­work­scheduler.

Preventive, speedy & efficient – elements of service excellence

Service­ excellence­ enables­ speedy­reaction­ capabilities­ on­ the­ part­ of­the­ service­ organization,­ significantly­reduced­ outage­ times­ for­ technical­systems­(and­thus­a­notable­boost­ in­quality­for­customers),­and­at­the­same­time­ an­ increase­ in­ service­ techni-cians’­productivity.­Factors­necessary­for­ this­ include­ the­use­of­digitization­opportunities­for­early­fault­detection,­the­deployment­of­remote­failure-diag-nostic­tools,­and­–­for­managing­tech-nicians­–­ the­use­of­modern­ replace-ment-part­ provisioning­ systems­ and­an­appropriate­system­for­handling­re-turns.­The­figure­to­the­right­illustrates­how­these­elements­interact.

Customers’­specific­requirements­are­accounted­for­through­the­implemen-tation­ of­ these­ elements.­ Framework­agreements­with­external­partners­can­be­used­to­cover­demand­peaks,­thus­rounding­ out­ the­ service-excellence­package.

Thomas Schmölzer, Associate­Partner­at­Drozak­Consulting­

Modern­distribution­and­management­concepts­combined­ with­the­necessary­digitization­are­a­fundamental­requirement­

for­service­excellence

(Automatic) failure reporting, usually via internet

Remote­servicingAssignment­of­technician

Overnight­delivery­of­­necessary­replacement­parts

GPS-guided­scheduling­(vehicle,­replacement­parts,­

technician­staff)

Remedying­the­defect­/­repair

Return­of­unused­­replacement­parts

Review­of­failure­report

Figure­1:­Seven­kinds­of­waste­in­service­organizations

98

Perfect symbiosis Lean 4.0 as a driver of innovative service

and maintenance organizations

Lean 4.0Lean 4.0

Few­ management­ concepts­ have­had­ such­ a­ lasting­ influence­ on­­manufacturing­ companies’­ mindsets­and­ activities­ as­ Lean­ Management.­The­ ­success­ of­ this­ optimization­ ap-proach­ has­ led­ its­ manufacturing-­sector­ ­principles­ and­methods­ to­ be­adapted­ for­ administrative­ functions,­as­well­as­for­maintenance­and­service­processes,­where­ they­have­become­firmly­established­in­many­companies.­Nevertheless,­ an­ assessment­ of­ un-derutilized­potential­in­daily­operations­often­shows­further­room­for­improve-ments­ in­ service­ efficiency,­ and­ thus­for­improved­customer­satisfaction.

Seven types of waste

A­critical­review­of­the­seven­types­of­waste­in­service­organizations­­­allows­the­ conclusion­ that­ considerable­­potential­ remains­even­ today­with­ re-gard­ to­ the­ traditional­ target­ dimen-sions­ of­ quality,­ time­ and­ costs­ (see­Figure­1).

Given­the­new­opportunities­offered­by­digitization,­the­time­dimension­in­par-ticular­ demands­ deeper­ considera-tion.­While­having­the­right­information­is­ a­ key­ aspect­ of­ improving­ service­efficiency,­ accelerating­ and­ sharing­information­can­catalyze­ service-pro-vision­ contract­ processing­ overall.­This­ is­ particularly­ true­ of­ processes­that­involve­third-party­providers­in­the­provision­of­services,­or­when­logistics­providers­ handle­ replacement-part­deliveries.

Digital & efficient: Reduce errors increase quality

In­ addition­ to­ reductions­ in­­contract-processing­ times,­ digitiza-tion­ clearly­ offers­ great­ opportunities­to­­improve­service­quality.­Consistent­and­ IT-supported­ contract-manage-ment­processes­diminish­ susceptibil-ity­ to­ errors,­ which­ are­ in­ large­ part­caused­ by­ repeated­ process­ steps­or­ communication­ failures.­ Digitally­supported­ maintenance­ process-es,­ particularly­ for­ complex­ technical­­systems,­thus­have­great­potential­for­reducing­errors­and­increasing­­quality.­In­ this­ regard,­activities­don’t­have­ to­be­ visionary­ ideal­ solutions­ (such­ as­augmented­ reality).­ Goal-oriented,­easily­ implemented­ measures­ can­themselves­make­a­significant­contri-bution­ to­ increased­ efficiency­ in­ the­traditional­kaizen­sense.

Digitization­ is­ thus­ an­ ­accelerator­ for­the­realization­and­­continuous­improve-ment­of­a­lean­service­organization.

Lean Management as an outstanding toolbox

At­the­same­time,­Lean­Management­methods­ represent­ an­ outstanding­set­ of­ tools­ for­ the­ conception­ and­realization­ of­ digitally­ supported­ lean­service­processes.­Traditional­(end-to-end)­value-stream­analyses­are­able­to­capture­the­current­status,­and­enable­a­transparent­presentation­of­the­initial­situation­based­on­an­evaluation­of­the­overall­contract­lifespan.­Likewise,­the­

depiction­of­an­ideal­state­is­an­equally­transparent­possibility­for­generating­a­goal­or­vision­that­can­be­used­as­the­basis­ for­ implementing­ immediately­realizable­ actions,­ which­ in­ turn­ rep-resent­the­necessary­prerequisites­for­implementation­of­the­visionary­goal.

Using­ as­ a­ basis­ its­ many­ years­ of­­experience­in­the­conception,­design,­and­ realization­ of­ lean­ value-added­chains,­ Drozak­ Consulting­ has­ de-veloped­ the­ necessary­ toolbox­ of­methodologies­ for­ the­ optimization­of­ service­ organizations.­ A­ collec-tion­ of­ more­ than­ 100­ value-adding­levers,­ combined­with­ the­use­of­ for-ward-looking­ Industry­ 4.0­ solutions,­serves­ as­ foundation­ for­ the­ ­creation­of­ customer-­tailored­ solutions.­One­ starting­ point­ can­ be­ a­ work-shop-based­quick­ scan.­The­existing­situation­ is­ described­ using­ a­ typical­value­stream­as­an­example,­with­the­inclusion­ of­ the­ employees­ involved.­Next,­a­qualitative­assessment­of­ the­degree­ of­ underutilized­ potential­ is­made,­both­with­regard­to­Lean­Man-agement­ and­ digitalization.­ A­ set­ of­objectives­ is­developed­together.­The­result­ is­an­evaluation­and­documen-tation­of­proposed­measures­that­both­considers­ implementation­ complex-ity­ and­ assesses­ the­ contribution­ to­optimization.

Holger Zühlke, Principal­at­Drozak­Consulting

Type of waste Characteristic Lean 4.0 opportunities

Delay Delay­in­providing­services­to­customer

Delayed­fault­recognition

Delayed­communication

Improved­contract­management­­(contract-management­process)

Digitally­supported­service­processes­(e.g.,­remote­diagnostics)

Duplication Repetition­of­data­provision

Repetition­of­planning­procedures

Consistent­digitization­of­contract-­management­and­contract-­implementation­processes

Unnecessary movement Replacement­parts­or­tools­aren’t­­available­at­work­site

No­one-stop­contract­processing

Better­visibility­of­replacement-part­availability

Integrated­contract­and­­replacement-part­scheduling

Layout­and­ergonomic­optimization­for­stationary­service­processes­(e.g.,­in­workshops)

Unclear communication Unclear­description­of­service­needs

Insufficient­description­of­­replacement-part­needs

Digitally­supported­service­processes­(e.g.,­remote­diagnostics)

Digitized­replacement-part­catalog­ (with­decentralized­availability)

Incorrect inventory Out-of-stock­situations

Replacement­parts­aren’t­available­at­the­right­location

Big-data­analyses­of­replacement-part­consumption­and­needs

Improvement­in­analysis­of­mean­time­between­failures­(MTBF)

Lost opportunities with­regard­to­customer­loyalty

with­regard­to­improvements­in­under-standing­customer­needs

Digital­assessment­of­customer­­service-provision­satisfaction

Errors Errors­in­service­provision

Incorrect­replacement­parts

Digitally­available­work­plans­and­­on-site­support­for­technicians

Things aren’t running smoothly? Develop the right remedy with Lean 4.0

1110

Transport costsMore than a question of negotiated rates

For many companies, transport – in the procurement context, between production locations or for outgoing goods – is not a core focus. Transport networks that have developed over time are generally non-transparent webs of inbound and outbound

transport services that are minimally coordinated and lead to significant costs, often with little overall transparency.

In order to counter rising costs, most organizations hire ostensibly low-cost service providers without carrying out

further analyses of optimization potentials.

Transport costs are complex

Transport­costs­generally­depend­on­three­factors:­operating­costs,­the­current­market­ situation,­ and­the­ transport­ company’s­ profit­margin.­ These­ costs­ are­ depict-ed­using­a­difficult-to-­understand­matrix­ of­ very­ different­ rates.­This­ lack­ of­ transparency,­ the­­increasing­ complexity­ of­ global­supply­ chains,­ rising­ fuel­ ­prices,­ever-shorter­ product­ lifecycles­and­ the­ associated­ growth­ in­transport­volumes­will­in­the­fore-seeable­ future­ lead­ to­ further­ in-creases­in­transport­costs.­To­be­sure,­ strong­ competition­ in­ the­transport­sector,­the­market­pow-er­ of­ manufacturing­ companies,­and­ skillful­ negotiating­ general-ly­ help­ to­ keep­ transport­ costs­low,­ but­ cannot­ exhaust­ the­ full­­potential­in­this­regard.

Transport costsTransport costs

Levers for cost reduction

Transport­ costs­ continue­ to­ ac-count­for­the­ largest­single­share­of­logistics­costs­(up­to­50%).­Even­with­ minimal­ investment,­ howev-er,­ experience­ shows­ that­ trans-port-cost­savings­of­between­3%­and­ 8%­ can­ be­ achieved.­ The­statement­ thus­ certainly­ applies:­“Transport­ costs­ are­ more­ than­a­ question­ of­ negotiated­ rates.”­By­ taking­ advantage­ of­ a­ variety­of­levers­and­synergies,­transport­costs­can­be­reduced­while­simul-taneously­realizing­an­ increase­ in­performance.

Thus,­the­issue­clearly­isn’t­one­of­hiring­the­cheapest­possible­carri-er.­Rather,­it’s­primarily­about­em-ploying­ an­ appropriate­ quantity­of­high-quality,­high-performance­transport­ service­ providers­ with­market-level­ prices­ and­ optimal­tariff­ models.­ A­ sustainable­ re-duction­ in­ transport­costs­can­ in­this­regard­be­achieved­only­with­an­integrated,­strategic­and­struc-tural­ logistics­ concept­ that­ takes­multiple­key­issues­into­view.

Transport-network utilization

In­order­to­achieve­optimum­over-all­ utilization,­ the­ transport­ net-work­ should­ be­ analyzed­ as­ a­whole­ (inbound,­ outbound,­ and­empty­ return­ transport),­ with­ the­goal­ of­ monitoring­ goods­ move-ments­ in­ their­ entirety.­ With­ the­help­ of­ a­ comprehensive­ trans-port­ strategy­ and­ an­ integrated­transport­ management­ style,­both­ transparency­and­the­ability­to­ plan­ transport­ processes­ can­be­ improved.­ Additionally,­ im-plementing­ consolidation­ points­can­ produce­ synergies,­ enabling­transport­to­be­both­reduced­and­more­efficiently­ utilized.­Addition-al­increases­in­capacity­utilization­and­ reductions­ in­ empty­ kilom-eters­ can­ be­ achieved­ by­ using­round­trips­or­ introducing­a­milk-run­model.

Company-wide­ freight­consolida-tion,­ efficient­ load­ building,­ and­coordinated­ transport­ structures­also­ offer­ significant­ potential­for­ savings­ without­ a­ time-inten-sive­ new­ tender­ or­ negotiations­process.

Analysis of delivery terms

In­ large­ transport­ networks,­ in-dividual­ suppliers’­ specific­ terms­and­ conditions­ can­ vary­ sub-stantially.­ In­ this­ respect,­ famil-iar­ Incoterms­ such­ as­ delivered­at­ place­ (DAP)­ can­ still­ include­­hidden­ ­delivery-company­ costs.­In­ some­ cases,­ these­ are­ diffi-cult­ to­ assign­ to­ individual­ cost­pools,­ and­ accordingly­ allow­ no­influence­over­the­transport­costs.­By­contrast,­ the­consistent­ intro-duction­of­the­traditional­EXW­(Ex­Works)­ ­delivery­ model­ enables­better­ transparency­ with­ regard­to­ individual­ prices­ and­ procure-ment­costs,­while­also­offering­the­ability­to­manage­the­supply­chain­­actively­and­benefit­from­addition-al­savings­potentials.

Potential of digitization

For­ optimal­ transport­ processes­and­ a­ sustainable­ reduction­ of­transport­ costs,­ administrative­processes­ too­ must­ be­ consid-ered,­and­ information­flows­must­be­ coordinated­ with­ the­ overall­transportation­ concept.­ Under­the­ “Industry­ 4.0”­ catchword,­digitization­ in­ the­ logistics­ sector­describes­ an­ integrated,­ decen-tralized,­ fully­ networked­ informa-tion­ flow­ that­ connects­ suppliers­and­transport­companies­with­the­purchasing­enterprise.

A­ fusion­ of­ integrated­ procure-ment­ processes­ with­ integrated­transport­ processes­ across­ a­common­ organizational­ platform­enables­a­transparent,­continuous­information­flow­as­well­as­a­close­and­ long-term­ partnership­ with­suppliers.­ A­ software-supported­transport­planning,­management,­and­control­process­along­with­a­gapless­ telematics­ system­ (track­and­trace)­here­offers­–­in­addition­to­ a­ reduction­ in­ administrative­activities­ –­ reliable­ real-time­data­that­ sustainably­ supports­ the­­optimization­of­the­entire­purchas-ing­and­transport­process.

Controlling

Where­markets­and­supply­chains­are­consistently­ in­flux,­ the­ ­entire­array­ of­ affected­measures­must­be­regularly­reviewed­and­­adapted­as­necessary.­An­­annual­audit­and­review­of­ the­current­structure­of­existing­ contract­ conditions­ and­the­current­market­­situation,­along­with­ an­ external­ vendor-bench-marking­ process,­ can­ deliver­ a­durable­and­­continuous­minimiza-tion­of­transport­costs.

Clemens Wagner, Consultant­at­Drozak­Consulting

Preview

In our next issue:Procurement and Value Creation in Times of Economic and Political Risk

Systematic risk reduction Optimization of risk

management and value creation

Global Economic Prospects and Risks

Interview with Prof. Clemens Fuest

Imprint

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Composition and layoutSusanne­Kwanka www.susannekwanka.de

Circulation / Frequency800­copies­/­4­×­per­year

The­magazine­and­all­texts­and­photos­are­protected­by­copyright.­Upon­manuscript­acceptance,­publication­rights­and­the­rights­to­translation,­allocation­of­reprint­rights,­electronic­storage­in­­databases,­and­production­of­reprints­and­photocopies­are­transferred­to­the­publisher.­Any­use­of­the­material­outside­the­limits­specified­by­­copyright­law­is­prohibited­without­the­permission­of­the­publisher.No­liability­is­assumed­for­any­unsolicited­articles­or­photographs.­ All­information­contained­is­published­on­the­basis­of­best­knowledge­and­belief,­but­is­without­guarantee.­The­magazine­is­provided­free­of­charge.

APRILSo SaMo Di Do FrMi

JULI