Optimizing your Purchases and Supply Chain in an International Environment With the support of the European Commission
Facilitator Profile <ul><li>Johan van Hamme (Belgium – 42 years) </li></ul><ul><li>Owner of Clear Vantage ( www.clear-vant...
<ul><li>Services:   </li></ul><ul><li>Reduce overall costs and improve efficiencies </li></ul><ul><li>Development of Suppl...
<ul><li>Expertise: </li></ul><ul><li>Cost-reduction methodologies </li></ul><ul><li>Products & services knowledge </li></u...
<ul><li>References: </li></ul><ul><li>Volkswagen, Audi, Seat, Skoda </li></ul><ul><li>Tenneco Automotive </li></ul><ul><li...
CU-FACTOR <ul><li>CU-FACTOR can help you with … </li></ul><ul><li>Cultural differences in business </li></ul><ul><li>Best ...
CU-FACTOR <ul><li>CU-FACTOR … </li></ul><ul><li>A knowledge center on European business culture </li></ul><ul><li>Highligh...
CU-FACTOR <ul><li>CU-FACTOR is focused on … </li></ul><ul><li>Companies outside Europe </li></ul><ul><li>European companie...
 
Purchasing Hints <ul><li>« TCO » methodologies most commonly used? </li></ul><ul><li>Incumbent sourcing: negotiation with ...
Purchasing Hints <ul><li>« TCO » methodologies most commonly used? </li></ul><ul><li>Simultaneous Engineering: sharing int...
Purchasing Hints <ul><li>« TCO » methodologies most commonly used? </li></ul><ul><li>Clear target setting: define price ex...
Purchasing Hints <ul><li>Development of a more « agile » supply chain: </li></ul><ul><li>Agile: short lead- time & unpredi...
 
« Low cost country » sourcing <ul><li>Pricing </li></ul><ul><ul><li>Price differences (Total Cost of Ownership) </li></ul>...
« Low cost country » sourcing <ul><li>Development </li></ul><ul><ul><li>Highly engineered products vs. traditional ones </...
« Low cost country » sourcing <ul><li>Environment </li></ul><ul><ul><li>Legislations (ex. Reach) </li></ul></ul><ul><ul><l...
« Low cost country » sourcing <ul><li>Indirect costs </li></ul><ul><ul><li>Travel costs </li></ul></ul><ul><ul><li>Time co...
 
Working Together - International Business Culture Page  Communication Cultural Influences Company Structure Work Interacti...
Communication Page  Culture Language Knowledge Language Tone Communication Style Handshake CU-FACTOR presentation v1.0  © ...
Cultural Influences Page  CU-FACTOR presentation v1.0  © 2008 Johan van Hamme Day Starts Dress Style Appearance Value Punc...
Company Structure Page  CU-FACTOR presentation v1.0  © 2008 Johan van Hamme Organization Orientation Flexibility Networkin...
Work Interaction Page  CU-FACTOR presentation v1.0  © 2008 Johan van Hamme Speed of Trust Program Analysis Decision Making...
 
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Purchasing & Business Culture

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Purchasing & Business Culture

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