Conception for Procurement Excellence E-Book

Willi Darr

• Herausgeber: tredition
• Kategorie: Wissenschaft und neue Technologien
• Sprache: Englisch

Seitenzahl: 58

Veröffentlichungsjahr: 2019

Beschreibung

The subject of this book is Procurement Excellence of procuring companies which is deemed a highly relevant topic out of two reasons. Firstly, corporate procurement, respectively purchasing management has witnessed a significant boost of importance over the last years. Increased outsourcing of services to suppliers and, simultaneously, commissioning of international subcontractors, have heavily altered the responsibilities and job description of purchasers with regards to their contribution to the company's added value. Additionally, product developments along (global) supply chains are growing steadily. On the other hand, digitalization displays future-oriented alternatives for corporate added value and hence provides fundamental opportunities and necessities to reach and sustain (global) competitiveness. Logically, these developments shape the quality of procurement and its processes to suppliers. Only an excellent purchasing department can be an authentic success indicator within a company. This book focuses on the two pillars of Procurement Excellence. To do so, a conception for categorizing and controlling purchasing performances, and a conception for categorizing digitalization will be illustrated in order to make differentiated statements regarding Procurement Excellence. Its two related dimensions will be merged within a final overall statement regarding Procurement Excellence.

Leseprobe

Willi Darr

Conception for Procurement Excellence

The performance profile and degree of digitalization of procurement

Willi Darr

Conception for Procurement Excellence

The performance profile and degree of digitalization of procurement

tredition Verlag

Hamburg

Prof. Dr. Willi Darr

University of Applied Sciences Hof

Procurement and Logistics Management

Alfons-Goppel-Platz1 ׀ D-95028 Hof/ Saale

Hardcover

ISBN 978-3-7482-6475-0

Paperback

ISBN 978-3-7482-6474-3

E-Book

ISBN 978-3-7482-6476-7

Bibliografische Information der Deutschen Nationalbibliothek

Die Deutsche Nationalbibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über http://dnb.dnb.de abrufbar.

Copyright: 2019 Willi Darr

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All rights reserved; no part of this publication may be reproduced or transmitted by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the publisher.

Cover and design by tredition & Willi Darr

Herstellung und Verlag ׀ Printed and published by

tredition GmbH, Halenreie 40-44, D-22359 Hamburg, Germany

Preface

The subject of this book is Procurement Excellence (the excellence of purchasing management) of procuring companies which is deemed a highly relevant topic out of two reasons.

Firstly, corporate procurement, respectively purchasing management has witnessed a significant boost of importance over the last years. Increased outsourcing of services to suppliers and, simultaneously, commissioning of international subcontractors, have heavily altered the responsibilities and job description of purchasers with regards to their contribution to the company’s added value. Additionally, product developments along (global) supply chains are growing steadily. Meaning that without excellent supply chain management by the company’s purchasing departments, corporate strategies can no longer be executed, or competitive advantages sustainably realized.

On the other hand, digitalization displays future-oriented alternatives for corporate added value and hence provides fundamental opportunities and necessities to reach and sustain (global) competitiveness. Logically, these developments shape the quality of procurement and its processes to suppliers. This means in turn that without excellence of management quality, corporate strategies cannot be implemented, nor competitive advantages sustainably obtained.

Only an excellent purchasing department can be an authentic success indicator within a company. This book focuses on the two pillars of Procurement Excellence. To do so, a conception for categorizing and controlling purchasing performances, and a conception for categorizing digitalization will be illustrated in order to make differentiated statements regarding Procurement Excellence. Its two related dimensions will be merged within a final overall statement regarding Procurement Excellence.

These insights have great advantages for all interested parties: (i) Each particular profile and detailed knowledge of the degree of digitalization allow for the responsible parties of the purchasing department to directly decide over an examination and extension of services, respectively the digitalization. Understanding their own Procurement Excellence is the foundation of the next purchasing strategy. (ii) Research and teaching will benefit from adopting authentically practicable concepts as basics for education and training. (iii) Students of the subjects Purchase, Supply Chain or Logistics benefit from obtaining practicable tools for their own purposes in later life.

In order to preserve legibility, the publication does not include references to male or female individuals.

Special thanks to Mrs. Mai Beck who has translated my German book into the English language.

To all interested readers I wish lots of helpful ideas and insights.

Prof. Dr. Willi Darr

Table of Contents

Preface

Table of Contents

List of Figures

List of Tables

1. Introductory Thoughts

2. Groundwork 1: User and Utility of Purchasing Services

a. Basic Idea

b. Forms of Utility and Users of Purchasing Services

c. First interim conclusion

3. Groundwork 2: Scaling of digitalization

a. Digitalization as strategic necessity

b. Industry 4.0 as stimulating force

c. Transferring of 4.0-elements to purchasing

d. Order cycle and information products as ground work of digital purchasing

e. Digital Penetration Point as structural feature of the level of digitalization

f. Second interim conclusion

4. Exemplary purchasing profiles

a. Display of profiles of Procurement Excellence

b. Depiction of case A

c. Depiction of case B

d. Depiction of case C

5. Procurement Excellence of type 1 and type 2

a. Procurement Excellence in terms of service extent (type1)

b. Procurement Excellence vis-à-vis management quality (type 2)

c. Procurement Excellence: Integration of dimensions

d. Conclusion

6. Bibliography

List of Figures

Figure 2.1: Comparison of three profiles for purchasing services

Figure 3.1: Basic structure of the order cycle

Figure 3.2: Collection, analysis and decision within individual process steps of the order cycle

Figure 3.3: Digital Penetration Points

Figure 3.4: Data organization within the order cycle

List of Tables

Table 2.1: Profundity of effects of purchasing services

Table 2.2: Categories of Users of purchasing services

Table 2.3: Examples for the three Benefit categories of purchasing services

Table 2.4: Conceptional frame of purchasing services

Table 4.1: Profile of the purchasing service

Table 4.2: KPIs for controlling the service profile

Table 4.3: Location of the Digital Penetration Point

Table 4.4: A: Profile of the purchasing service

Table 4.5: A: KPIs for controlling the service profile

Table 4.6: A: Location of the Digital Penetration Point

Table 4.7: B: Profile of the purchasing service

Table 4.8: B: KPIs for controlling the service profile

Table 4.9: B: Location of the Digital Penetration Point

Table 4.10: C: Profile of the purchasing service

Table 4.11: C: KPIs for controlling the service profile

Table 4.12: C: Location of the Digital Penetration Point

Table 5.1: Procurement Excellence type 1

Table 5.2: Procurement Excellence type 2

Table 5.3: 3x3 matrix of Procurement Excellence

1. Introductory Thoughts

Procurement and its services are (broadly) acknowledged as equal part of a company’s added value by process reliability, earnings and risk management and profiling in the sales market. However, the level of realization of this equality within companies has not yet been consistently implemented. These development processes are currently taking place. They can and will be initiated, facilitated and expedited by a convincing performance, respectively excellence of procurement.