Group members:

Presentation

Purchasing• Strategies• Working relationships – internal and external• What are the responsibilities of a buyer• Needed qualifications of buyer

Kraljic’s matrix + changes

PurchasingStrategies

SCANIA (SC) is roughly divided into three product/commodity groups rope cabin chassis The commodity groups “own” the suppliers and are responsible for the business. SC has a strong strategy concerning suppliers-work with small/middle sized companies (need to able to deliver the needed quantities)-is easier to develop new products (open to the change)-own the tools used in production (control over the supplier is bigger, tighten up the relation between SC and the suppliers)-SC englobes all the main suppliers in their strategies (positive for both parts so they can grow together)Focus Strategy ( focused on a certain category within the market)

Working relationships internal/externalInternal-a tight relation between all the departments linked with the production and purchasing area (mutual dependence)-all departments need to communicate continuously (production department understands the process of what is procured, manufactured and sold)External-a continuous effort to keep the suppliers close to the company (higher trust leading to a stronger investment in development)-a good understanding of the customers’ needs so SC can provide the product that is wanted by the market

What are the responsibilities of a buyer -pay attention to how spare parts of the products are torn down, in order to perform proactive- and effective procurement. - Do a total cost perspective for the customer and it reviles if the purchasing organization is involved early in the product development.-be aware of the internal and external work environment-negotiate the best contracts with a supplier

Needed qualifications of buyer-bachelor’s degree or technical degree depending on the workplace-The ability to comfortably talk about price-Knowledge of the available suppliers, the current capacity situation, and the impact of the economy.-The patience needed to negotiate successfully-Knowing and working the details in order to get value for the money spent.-Understanding what needs to be kept confidential.-good with math in order to compare quantities and prices from different sources.

Kraljic’s matrix + changesSC uses the Kraljic´s matrix:- as an observation/analysis tool. -used to better understand if the purchasing department is working with the right items. -not used to do major changes within strategies-quite effective tool concerning the purchasing and supply management-complemented with other models in order to evaluate their suppliers

Changes-instead of having the analysis based on profit, it is used cost per year-the whole process is simplified since some economics analyses will be “erased”-the supplier side is disregarded, it is considered as a medium problem and SC complements the matrix with other models in order to evaluate their suppliers-relationship with the suppliers according to the Kraljic guidelines are more exploit oriented whereas SC suppliers situated in the strategic quadrant are treated as partners.

SC has a strong strategy concerning suppliers and work etiquetteGood work relationships leads to better products and satisfied customersDescription of a buyerAll Kraljic’s categories are used to some extentChanges are made in order to align with company policy and to maximise production stages and to simplify work in the purchasing department .