Purchasing & Business Culture
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Transcript of Purchasing & Business Culture
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