strategic aspects in supply management florian schupp 06.05

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Strategic aspects in Supply Management Vice President Purchasing Automotive Schaeffler Group Dr.-Ing. Florian Schupp International Procurement TU Berlin, 06.05.2011

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Page 1: Strategic Aspects in Supply Management Florian Schupp 06.05

Strategic aspects in Supply Management

Vice President Purchasing Automotive

Schaeffler Group

Dr.-Ing. Florian Schupp

International Procurement

TU Berlin, 06.05.2011

Page 2: Strategic Aspects in Supply Management Florian Schupp 06.05

Automotive Industry Aerospace

Three Brands Working Together

Total sales 2010: approx. > ! 9 Bn. approx. 65,000 Employees

!""#$%&'()#$*)*$+*,#(-#./01#%2#34$(%5/"4$#%2#54)*#-6#&$42(#-6#42#78#$%&'(9

Page 3: Strategic Aspects in Supply Management Florian Schupp 06.05

:"/(5'#$*"*4)*#);)(*<

=/4"#>4))#?";@'**"

:AB#:-<3-2*2()

B-$C/*#:-2+*$(*$

D Components for Clutch

and Transmission systems

E!:

Dual Clutch System

dry/wet

E*2)-$#F @'**"#G*4$%2&B42,*<#42&/"4$

5-2(45(#G4""#G*4$%2&)

=**3#&$--+*,G4""#G*4$%2&)

D Wheel-Modules

D Transmission

bearings

B43*$*,$-""*$#G*4$%2&)

>4))F$*,/5*,G4"425*#)'46(

B--('#5'4%23$%<4$;#,$%+*

H4""#)5$*@#,$%+*

A4$%4G"*+4"+*#(%<%2&

?%2&*$#6-""-@*$#@9';,$4/"%5#3%+-(#*"*<*2(

I;,$4/"%5(433*(

E($/(#G*4$%2&

=$4@22**,"*#G*4$%2&

J+*$$/22%2&4"(*$24(-$#3/""*;

B%<%2&#5'4%2,$%+*

E'%6(%2&#);)(*<

D Engine and Transmission

Components

Product Portfolio 8/$5'4)%2& !/(-<-(%+*

Page 4: Strategic Aspects in Supply Management Florian Schupp 06.05

- 4 -

Strategic Aspects in Supply Management

Agenda

Purchasing Strategy

Innovation

Supplier Quality Management

Psychological aspects

Page 5: Strategic Aspects in Supply Management Florian Schupp 06.05

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Strategic Aspects in Supply Management

Use of the strategy term in business practice

" !24";)%)#-6#('*#)($4(*&%*)#-6#KK#"4$&*#5-<342%*)#-+*$#,*54,*)1#%9*9#-6#

A-"L)@4&*21#!%$#:424,41#G/%",%2&#5-2)($/5(%-2#5-<342%*)1#4#

)/3*$<4$L*(#5'4%2#42,#('*#<%"%(4$;#)($4(*&;#-6#('*#ME!#%2#A%*(24<9

" !%<N#5-<3$*'*2)%-2#-6#)($4(*&;#,*+*"-3<*2(#42,#('*#3$-5*))#-6#

)($4(*&;#&*2*$4(%-29

" O*)/"(N#%2#G/)%2*))#3$45(%5*#('*#)($4(*&;#(*$<#%)#-6(*2#,*6%2*,

,%66*$*2(";#(-#%()#45(/4"#/)*9

" P'*2#4)L*,#@'%5'#)($4(*&;#4#5-<342;#6-""-@)1#('*#42)@*$#%)#/)/4"";#

,*$%+*,#6$-<#('*#,*)5$%3(%-2#-6#5-2)*C/*2(#G*'4+%-/$#%2#('*#34)(9

" B'*#(*$<#%)#/)*,#(-#,*)5$%G*#6/(/$*F-$%*2(*,#3"422%2&#-6#34)(#45(%-2)9#

72#('*#G*)(#54)*#-2*#('*$*6-$*#-6(*2#'4)#%<3"%5%(#-$#4/(-<4(%5#)($4(*&%*)9#

Study by Mintzberg

E-/$5*N#>%2(QG*$&#RSTTKUN#E($4(*&%*#4")#I42,@*$LV%2N#>-2(&-<*$;V#8-$(*$#RI$)&9UN#E($4(*&%*V#P%$()5'46()+*$"4&#M*G*$$*/(*$#

Page 6: Strategic Aspects in Supply Management Florian Schupp 06.05

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Strategic Aspects in Supply Management

Characteristics of a strategy

" B'*#%2(*2(%-24"#/)*#-6#4#)($4(*&;#(4$&*()#6/2,4<*2(4"#5'42&*)#%2#('*<4$L*(#*2+%$-2<*2(#42,#5-<3*(%(%+*2*))#G;#('*#,*3"-;<*2(#-6#$*)-/$5*)9

" !#)($4(*&;#%)#%2(*2(%-24"1#$*6"*5(*,#42,#@*""F6-/2,*,9

" !)#4#$*)/"(#-6#)($4(*&%*)#6/2,4<*2(4"#5'42&*)#542G*#45'%*+*,#%2#4#)'-$(#3*$%-,#-6#(%<*9

" B'*#)/55*))#-6#4#)($4(*&;#,*3*2,)#-2#('*#L2-@"*,&*#4G-/(#5/"(/$*1+%*@1#4((%(/,*#42,#5'4$45(*$%)(%5#G*'4+%-/$#34((*$2#-65-<3*(%(-$)#42,#)/33"%*$)9

" !#)($4(*&;#%)#('*#,*+*"-3<*2(#-6#42#45(%-2#3"421#@'*$*4)#('*$*'4)#(-#G*#4#5-2)%)(*2(#$*"4(%-2#G*(@**2#('*#5/$$*2(#)(4(/)#42,('*#6%24"#(4$&*(#"%2L*,#@%('#('*#-+*$F4""#5-<3$*'*2)%+*#(4$&*(9

Strategy

E-/$5*)N#I*2,*$)-2#RSTTKUN#W*'(#*)#/<#E($4(*&%*#F )5'"4&#245'#G*%#=4$@%2V#%2N#>-2(&-<*$;V8-$(*$#RI$)&9UN#E($4(*&%*V#P%$()5'46()+*$"4&#M*G*$$*/(*$I%2(*$'/G*$#RKXXYUN#E($4(*&%)5'*#M2(*$2*'<*2)6Z'$/2&V#H42,#KV#P4"(*$#,*#W$/;(*$[*@<42#*(#4"9#RKX\XUN#E($4(*&;V#E-/('#P*)(*$2

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Strategic Aspects in Supply Management

Over-all target: Gain market power, strengthen procurement position

Create preferences

2 Create comparability of prices and conditions

2 Allow change of suppliers

2 Increase competition by means of fair and clear sourcing rules

Buyer Supplier

Benefit from

market powers

Flexibility

Transparency

Commitment

2 Enhance product differentiation

2 Create dependencies

2 Undermine sourcing processes

E-/$5*N#E%*<*2)#RSTTTU#

E-/$5*N#E5'/33#RSTT]UNA*$)-$&/2&))($4(*&%*2#%2#,*$#.-&%)(%L9#0-2Q*3(%-2#*%2*)#<-,/"4$*2#^2()5'*%,/2&)<-,*"")V=*/()5'*$#M2%+*$)%(_()+*$"4&1#P%*)G4,*2

Page 8: Strategic Aspects in Supply Management Florian Schupp 06.05

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Strategic Aspects in Supply Management

Market structure – negotiation power depends on relative importance

Negotiation Power

of Buyer

Purchasing

volume by supplier

D e c r e a s eI n c r e a s e

Optimize

importance of

Buyer

Enforce

degree of

competition

H-2/) >4"/)

E-/$5*N#E%*<*2)#RSTTTU#

E-/$5*N#E5'/33#RSTT]UNA*$)-$&/2&))($4(*&%*2#%2#,*$#.-&%)(%L9#0-2Q*3(%-2#*%2*)#<-,/"4$*2#^2()5'*%,/2&)<-,*"")V=*/()5'*$#M2%+*$)%(_()+*$"4&1#P%*)G4,*2

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Strategic Aspects in Supply Management

E-/$5*N#=4$L-@#`#E5'/33#RSTTSUN#!G"*%(/2&#+-2#^F8$-5/$*<*2(#E($4(*&%*2#4/)#*%2*<#A*$)-$&/2&)3-$(6-"%-1%2N#H4/<&4$(*2#*(#4"9N#.-&%)(%LF>424&*<*2(V#E3$%2&*$

Number of suppliers E-"* E%2&"* =/4" >/"(%3"*

Complexity of input factor ^"*<*2( >-,/"* E;)(*<

Market size .-54" 72#*5-2-<%5#4$*4 W"-G4"

Supply method H/66*$#)(-5L =*<42,#-$%*2(4(*,E;25'$-2%Q*,3$-,/5(%-2

Structure of procurement organisation 72,%+%,/4" a-%2(

Location of

value-added-service^b(*$24" 72(*$24"

Supplier potential B*5'2-"-&;#"*4,*$ 722-+4(-$ ?-""-@*$

Pricing >4$L*(#-$%*2(4(*, :-)(#-$%*2(4(*, 84$(2*$)'%3#433$-45'

IT-integration of supplier B%&'(#`#5-<<-2#)-6(@4$* .--)*#`#)(42,4$,%Q*,#%2(*$645*)

Morphological box for strategy concepts in procurement

Page 10: Strategic Aspects in Supply Management Florian Schupp 06.05

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Strategic Aspects in Supply Management

There are 3 types of suppliers cKd

Innovators: !$*#('-)*#5-<342%*)#('4(#5-2)(42(";#G$%2&#/3#2*@#(*5'2-"-&%*)1#<4(*$%4")#42,#$*)3*5(%+*#3$-,/5(#%,*4)9

Technology leaders:=-2e(#'4+*#(-#&*2*$4(*#)/5'#%,*4)#G;#('*<)*"+*)1#G/(#542#G*#5'4$45(*$%Q*,#G;#('*#645(#('4(#('*;#*2'425*#%22-+4(%-2)#64)(1#%<3$-+*#('*<#42,#G$%2&#('*<#(-@4$,)#4#<4$L*(#<4(/$%(;9#B'%)#,*<42,)#)/66%5%*2(#,*+*"-3<*2(#42,#3$-,/5(%-2#54345%(%*)#%2#-$,*$#(-#3$-+%,*#4#2**,*,#C/42(%(;#-6#2*@#<4(*$%4"#(-#('*#5/)(-<*$)#@%('#*2-/&'#6"*b%G%"%(;9#B'%)#5434G%"%(;#6-$#4#G$-4,#%2($-,/5(%-2#-6#2*@#<4(*$%4")#%)#2-(#&%+*2#4(#%22-+4(-$)9

Fast Followers:!$*#5'4$45(*$%)*,#G;#'%&'#3$-,/5(%-2#54345%(%*)#42,#'%&'";#*66%5%*2(#)(42,4$,%)4(%-2#3$-5*))*)9

cKd A&"9#!$2-",#RKXXYU1#=4$L-@#`#E5'/33#RSTTSGUVE5'/33#RSTT]UN#A*$)-$&/2&))($4(*&%*2#%2#,*$#.-&%)(%L1#=*/()5'*$#M2%+*$)%(_()+*$"4&1#P%*)G4,*2#STT]1#E9#Yf6

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Strategic Aspects in Supply Management

The power of ...

E-/$5*N#E5'/33#RSTT]UNA*$)-$&/2&))($4(*&%*2#%2#,*$#.-&%)(%L9#0-2Q*3(%-2#*%2*)#<-,/"4$*2#^2()5'*%,/2&)<-,*"")V=*/()5'*$#M2%+*$)%(_()+*$"4&1#P%*)G4,*2

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Strategic Aspects in Supply Management

Choose the right partner(s)

E-/$5*N#?-$#('*#3*$6*5(#34$(2*$1#6%$)(#&*(#;-/$#<4(')#$%&'(1#B'*#B%<*)#-6#72,%41#H42&4"-$*1#SY9T\9STTX1#39#KX

Page 13: Strategic Aspects in Supply Management Florian Schupp 06.05

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Strategic Aspects in Supply Management

Date and then reject before to start searching for love

E-/$5*N?-$#('*#3*$6*5(#34$(2*$1#6%$)(#&*(#;-/$#<4(')#$%&'(1#B'*#B%<*)#-6#72,%41#H42&4"-$*1#SY9T\9STTX1#39#KX:9#:$*))@*""1#>4('*<4(%5)#42,#E*b1#E;,2*;

D The strategy:

=4(*#42,#('*2#$*g*5(#<%2%</<#KS#3-(*2(%4"#34$(2*$)#-/(#-6#KTT#542,%,4(*)#G*6-$*#(-#)(4$(#)*4$5'%2&#6-$#"-+*9

D Result:

hij#5'425*#(-#45(/4"";#6%2,#4#34$(2*$#42,#)(4;%2&#@%('#'%<9

D Good to know:

KU#7(#%)#2-(#4G-/(#$%&'(#-$#@$-2&1#%(#%)#4G-/(#34((*$2)9SU#>$9#-$#>$)9#O%&'(#,-#2-(#g/)(#5-<*#%2(-#;-/$#"%6*9#P*#'4+*#(-#@-$L#-2#%(9fU#O-<42(%5#4((45'<*2()#4"$*4,;#%<3$-+*#('*#5'425*)#(-#6%2,#4#3*$6*5(#34$(2*$9

D By the way: 7(#@4)#3$-+*2#('4(#*+*2#%2#4#@-$",#@'*$*#@*#<**(#<42;#3*-3"*1#KS#%)#)(%""#4#+4"%,#2/<G*$9

D Transfer into Purchasing auctions:

76#;-/#@42(#(-#&*(#]#34$(2*$)#4(#('*#)4<*#(%<*1#)(4$(#)*4$5'%2&#-/(#-6#<%29#KTT1#G*((*$#]TT42,#6%24"";#,4(*#@%('#]\9E(4;#-2#('*#<4$L*(1#%6#;-/#2**,#(-#%2($-,/5*#2*@#(*5'2-"-&%*)9

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Strategic Aspects in Supply Management

Date with …

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Strategic Aspects in Supply Management

To get …

Page 16: Strategic Aspects in Supply Management Florian Schupp 06.05

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Strategic Aspects in Supply Management

Agenda

Purchasing Strategy

Innovation

Supplier Quality Management

Psychological aspects

Page 17: Strategic Aspects in Supply Management Florian Schupp 06.05

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Strategic Aspects in Supply Management

Aspects of efficient buyer-supplier relationships

D P. F. Johnson, M. R. Leenders, A. Day, The University of Western Ontario:B'*#-33-$(/2%(;#(-#&4%2#5-<3*(%(%+*#4,+42(4&*#('$-/&'#*b5*""*25*#%2#)/33"%*$#<424&*<*2(#%)#@*""F*)(4G"%)'*,#%2#('*#"%(*$4(/$*#42,#('*$*#'4)#G**2#5-2)%,*$4G"*#%2(*$*)(#G;#454,*<%5)#42,#3$45(%(%-2*$)#%2#'-@#(-#G*)(#"*+*$4&*#G/;*$F)/33"%*$#$*"4(%-2)#R:4$$#42,#8*4$)-2#KXXXU9

D Generally, the literature has classified buyer-supplier relationships into two categories:

:--3*$4(%+*#42,#5-<3*(%(%+*#R:'-%#42,#P/#STTXU9:--3*$4(%+*#$*"4(%-2)'%3)#4$*#5'4$45(*$%Q*,#G;#4#"-2&F(*$<#5-<<%(<*2(1#)'4$*,#5-<<-2#&-4")1#(@-F@4;#%26-$<4(%-2#)'4$%2&#42,#4#'%&'#"*+*"#-6#($/)(#R>5!"%)(*$#KXXiV#I4$("*;#*(#4"9#KXXhV#MQQ%#KXXhU9#O*)*4$5'#-2#5--3*$4(%+*#$*"4(%-2)'%3)#'4)#%25"/,*,#G/;*$F)/33"%*$#34$(2*$)'%3)#42,#4""%425*)#Ra-'2)(-2#*(#4"9#STT]U9#72#5-2($4)(1#5-<3*(%(%+*#$*"4(%-2)'%3)#4$*#5'4$45(*$%Q*,#G;#4#)'-$(F(*$<#-$%*2(4(%-21#@'*$*#('*#3/$5'4)*$#<4L*)#,*5%)%-2#3$%<4$%";#-2#('*#G4)%)#-6#3$%5*#RB)4;#42,#!&$4@4"#STT]U9

D Kruse, nextpractise (2010):?/(/$*#G/)%2*))#)/55*))#$*C/%$*)#5-""4G-$4(%-2#%2#4#2*(@-$L#433$-45'*)#42,#G/;*$F)/33"%*$#,*+*"-3<*2(#34$(2*$)'%3#$4('*$#('*#5-2($-"#-6#G/;*$F)/33"%*$#$*"4(%-2)'%39#B'*#84$(2*$)'%3#433$-45'#%)#%2#4"$*4,;#455*3(*,#%2#('*#G$4%2)#-6#4""#*b3*$()1G/(#4(#('*#)4<*#(%<*#('*#34$(2*$)'%3#433$-45'#%)#2-(#$-""*,F-/(#;*(9

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Strategic Aspects in Supply Management

Aspects of efficient buyer-supplier relationships

D H. Schiele et al. (2010), University of Twente:8$*6*$$*,#5/)(-<*$#)(4(/)#'4)#3-)%(%+*#*66*5(#-2#)/33"%*$#%22-+4(%+*2*))1#4")-#3$%5*)#4$*#G*((*$#%6#3$*6*$$*,#5/)(-<*$#)(4(/)9

D Aydin Inemek, Paul Matthyssens (2010), University of Antwerp::-""4G-$4(%+*#G/;*$F)/33"%*$#$*"4(%-2)#*2'425*#%22-+4(%-29#:$-))6/25(%-24"#"%2L)#6-)(*$#)/33"%*$#%22-+4(%-29#H/(N#:-""4G-$4(%+*#5-<</2%54(%-2#%)#2-(#*2-/&'9#J2";#-@2#,*)%&2#$*)3-2)%G%"%(;#G;#('*#)/33"%*$#42, 5-""4G-$4(%+*#5-<</2%54(%-2#"*4,#(-#4#G*2*6%(%4"#$*)/"(9#

D R. Large et al., University of Stuttgart (2010):E/55*))6/"#*2+%$-2<*2(4"#<424&*<*2(#5-$$*"4(*)#3-)%(%+*";#@%('#('*#)/55*))#-6#('*#3/$5'4)%2&#45(%+%(%*)#%2#('*#54)*#@'*$*#)/33"%*$#*+4"/4(%-2)#4$*#34$(#-6#('*#3/$5'4)%2&#3$-5*))*)9#8-)%(%+*#5-$$*"4(%-2#-2";#%6#6-5/)#5-<342;#%)#5$*,%G"*#%2#*2+%$-2<*2(4"#<424&*<*2(9

D W. Ströbe et al., University of Utrecht (2009)::$*4(%+%(;#%)#'4$,#@-$LN#?%$)(#('%2L#G;#;-/$)*"61#&--,#<--,#*2'425*)#5$*4(%+%(;1#)*"6F5-26%,*25*1#-3(%<%)(%51#*2+%$-2<*2(#42,#)%(/4(%-2#4$*#,*5%)%+*1#'4$,#@-$L1#*b3*$(%)*1#G$-4,#%2(*$*)(#42,#-3*22*))#3$*$*C/%)%(*)#6-$#5$*4(%+*#<-+*)9

Interesting:kP*$#%<#.4G-$#*%2*)#[-G*"3$*%)($_&*$)#6-$)5'(1#*$'l'(#,%*#P4'$)5'*%2"%5'L*%(1#)*"G)(#*%2<4"#4/6#*%2*2#4/m*$&*@l'2"%5'*2#W*,42L*2#Q/#L-<<*2#/2,#[-G*"3$*%)($_&*$#Q/#@*$,*29k

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Strategic Aspects in Supply Management

Which aspect decides about market leadership?

55%

6 5%

6 7%

6 9 %

70 %

71%

74 %

79 %

8 5%

4 5%Sp ecial izat io n

Quant it y

N o . o f co unt r ies

T rad it io n

Sales

Prest ig e

B ro ad p ro d uct p o rt f o l io

B rand awareness

Qualit y lead ership

T echno lo g y lead ership

E-/$5*N#I%,,*2#5'4<3%-2)1#I*$<422#E%<-21#:4<3/)#A*$"4&1#?$42L6/$(1#[*@#n-$L1#STTh1#E9#hYE(/,;#-6#('*#?$4/2'-6*$#72)(%(/(*#

Musa_Admin
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Strategic Aspects in Supply Management

Purchasing leverages on the bottom-line of a company

2,9%

3,7%

3,7%

5,7%

2,9%Go o d supplier

re lat io nship

P ro cess

impro vement

Glo balizat io n

P o o ling o f demand

P ro duct

o pt imizat io n

E-/$5*N#E9:9#E5'/<45'*$1#I9#E5'%*"*1#>9#:-2(Q*21#B9#o45'4/1#=%*#f#?4L(-$*2#,*)#^%2L4/6)1#P%"*;#A*$"4&1#STT\1#E9#SiS66I9#E5'%*"*1#722-+4(%-2*2#+-2#/2,#<%(#.%*6*$42(*21#:-26*$*25*#3$-5**,%2&)1#:8J#B$*66*21#WZ(*$)"-'1#S]9KK9STT\#

D 'pQ1#H>^#42,#H>q#)(/,;#-6#KTK#5-<342%*)1#4+*$4&*#h9Xj#Op=#*b3*2)*)14+*$4&*#)4"*)#\]T#>%-9#r 39491#4+*$4&*#2/<G*$#-6#*<3"-;**)#SX\\

D [-#)%&2%6%542(#,%66*$*25*)#%2#$*)/"()#G;#)*5(-$#42,#3/$5'4)%2&#+-"/<*

D E/55*))6/"#5-<342%*)#@%('#$*&4$,)#(-#%22-+4(%-2#'4+*#K]#%22-+4(%-2#5-2($%G/(%2&#)/33"%*$)

D .*))#)/55*))6/"#5-<342%*)#@%('#$*&4$,)#(-#%22-+4(%-2#'4+*#h#%22-+4(%-2#5-2($%G/(%2&#)/33"%*$)

:-25"/)%-2N#E/33"%*$#5-2($%G/(*,#%22-+4(%-2#(-#G*#4,,*,#(-#('*#8/$5'4)%2&#(4$&*()

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Strategic Aspects in Supply Management

‚Die Dampfmaschin‘ - Innovation is key

Page 22: Strategic Aspects in Supply Management Florian Schupp 06.05

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Strategic Aspects in Supply Management

Sources

E-/$5*)#34&*#fNI-"&*$#E5'%*"*1#a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qL-"-&%)5'*)#.%*6*$42(*2<424&*<*2(#/2,#H*)5'466/2&)*$6-"&1#E(/((&4$(#STKTP9#E($lG*1#M2%+*$)%(;#-6#M($*5'(1#a9#?l$)(*$1#M2%+*$)%(;#-6#!<)(*$,4<1#^9#I%$(1#72,%424#M2%+*$)%(;#RSTTXUN#0$*4(%+%(_(#%)(#'4$(*#!$G*%(1#)*+*$4"#3/G"%54(%-2)1#Eo#[$9#KS1#KY9TK9STTX1#39#KY

E-/$5*)#34&*#SN89#?$4)*$#a-'2)-2#42,#>%5'%*"#O9#.**2,*$)#RSTKTU1 E/33"%*$#O*"4(%-2)'%3#>424&*<*2(1#78E^O!#5-26*$*25*#%2#.433**2$42(4#STKT1#B'*#M2%+*$)%(;#-6#P*)(*$2#J2(4$%-1#.-2,-21#J2(4$%-1#:424,4!"42#=4;1#E(4(*#-6#?"/b1#.-2,-21#M2%(*,#0%2&,-<0$/)*#RSTKTUN#I4/3(+-$($4&#ST9KT9STKT1#=*/()5'*$#.-&%)(%LL-2&$*))1#H*$"%2

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Strategic Aspects in Supply Management

Sources

:4$$1#!9E91#8*4$)-21#a9[91#KXXX9#E($4(*&%54"";#>424&*,#H/;*$FE/33"%*$#O*"4(%-2)'%3)#42,8*$6-$<425*#J/(5-<*)9#a-/$24"#-6#J3*$4(%-2)#>424&*<*2(#Kh#RiU1#]XhFiKX9

:'-%1#B9n91#P/1#o91#STTX9#B$%4,)#%2#E/33";#[*(@-$L)N#B'*-$%Q%2&#H/;*$FE/33"%*$FE/33"%*$O*"4(%-2)'%3)9#B'*#a-/$24"#-6#E/33";#:'4%2#>424&*<*2(#]i#RKU1#\FSi9

I4$("*;1#a9.91#>*$*,%('1#a9O91#>5:/(5'*-21#=91#04<4('1#O9O91#KXXh9#E/33"%*$)s#:-2($%G/(%-2)(-#8$-,/5(#=*+*"-3<*2(N#!2#^b3"-$4(-$;#E(/,;9#7^^^#B$42)45(%-2)#-2#^2&%2**$%2&>424&*<*2(#]]#RfU1#Si\FSYh9

a-'2)(-21#=9!91#>5:/(5'*-21#=9>1#E(/4$(1#?9791#0*$@--,1#I91#STT]9#^66*5()#-6#E/33"%*$#B$/)(-2#8*$6-$<425*#-6#:--3*$4(%+*#E/33"%*$#O*"4(%-2)'%3)9#a-/$24"#-6#J3*$4(%-2)#>424&*<*2(SS#RKU1#SfFf\9

>5!""%)(*$1#=91#KXXi9#!66*5(F 42,#:-&2%(%-2FH4)*,#B$/)(#4)#?-/2,4(%-2#6-$#72(*$3*$)-24":--3*$4(%-2#%2#J$&42%Q4(%-2)9#!54,*<;#-6#>424&*<*2(#a-/$24"#f\#RKU1#S]FiX9

B)4;1#!9!91#!&$4@4"1#[91#STT]9#:'422*"#:-26"%5(#42,#:--$,%24(%-2#%2#('*#^5-<<*$5*#!&*98$-,/5(%-2#42,#J3*$4(%-2)#>424&*<*2(#Kf#RKU1#XfFKKT9

MQQ%1#H91#KXXh9#E-5%4"#E($/5(/$*#42,#:-<3*(%(%-2#%2#72(*$6%$<#[*(@-$L)N#B'*#84$4,-b#-6^<G*,,*,2*))9#!,<%2%)($4(%+*#E5%*25*#t/4$(*$";#]S#RKU1#fiFYh9

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Strategic Aspects in Supply Management

Agenda

Purchasing Strategy

Innovation

Supplier Quality Management

Psychological aspects

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Strategic Aspects in Supply Management

Are the supply targets in competition to each other

and

does the zero defect optimum really exist?

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Strategic Aspects in Supply Management

Juran, Juran

E-/$5*N#J3(%</<#t/4"%(;#:-)()#42,#o*$-#=*6*5()N#!$*#B'*;#:-2($4,%5(-$;#:-25*3()u#v G;#!$('/$#>9#E5'2*%,*$<42

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Strategic Aspects in Supply Management

Zero Defects optimum

o*$-#,*6*5()#-3(%</<

E-/$5*N#J3(%</<#t/4"%(;#:-)()#42,#o*$-#=*6*5()N#!$*#B'*;#:-2($4,%5(-$;#:-25*3()u#v G;#!$('/$#>9#E5'2*%,*$<42

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Strategic Aspects in Supply Management

One answer might be found in 6 Sigma

D 999%)#4#methodical approach 6-$#3$-5*))#%<3$-+*<*2(

D 999$*3"45*)#)(-<45'#6**"%2&#by knowledge

D 999%)#G4)*,#-2#numbers1#data 42,#facts

D 999/)*)#statistical tools

D 999'4)#('*#(4$&*(#(-#$*,/5*#('*#+4$%425*#%2#('*# wkill variationx

D 9995*2(*$)#('*#3$-5*))*)#(-@4$,)#customer requirements

Y#E%&<4#%)N

W$l&"*$1#[*/G4/*$#RSTTYUN#!p=#E^#^b3*$(#=4;)1#^%26Z'$/2&#E%b#E%&<41P4)#%)(#Y#E%&<41#E9#]

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Strategic Aspects in Supply Management

What is 6 Sigma?

Sigmay#%)#<4('*<4(%54"";#)**2#4#<*4)/$*#-6#+4$%425*

Six Sigma %)#-2*#-6#('*#'%&'*)(#$*C/%$*<*2()#(-#('*#3$-5*))C/4"%(;#42,#$*6*$)#(-#f9]#64%"/$*)#G;#K#<%""%-2#-33-$(/2%(%*)yE%&<4#4")-#)(42,)#6-$#)(42,4$,#,*+%4(%-2

2 308.537

3 66.807

4 6.210

5 233

6 3.4

! 88>

process

capability

defects per million

opportunities

f1\i#<*42-6#%2,/)($%4"#)*5(-$%2#W*$<42;

Bl36*$#RSTT]UN#E%b#E%&<418$-g*L(<424&*<*2(#6Z$#[/""F?*'"*$Ft/4"%(_(#%2#,*$#!/(-<-G%"%2,/)($%*1#E9#Kf

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Strategic Aspects in Supply Management

The history of Six Sigma

cKd#Bl36*$#RSTT]UN#E%b#E%&<418$-g*L(<424&*<*2(#6Z$#[/""F?*'"*$Ft/4"%(_(#%2#,*$#!/(-<-G%"%2,/)($%*cSd#E5'<%*,*$#RSTTfUN#A-$)%5'(%&*#!22_'*$/2&#v E(/,%*N#!2@*2,/2&#+-2#E%b#E%&<4%2#=*/()5'"42,V#%2#to1#]\9#a&9#RSTTfU1#E9#YX\FhTT

1987

2 The number of users increases steadily

2 Six Sigma is established as method standard

2 A study of the year 2003 shows

that the majority of 6 Sigma users

in Germany are large enterprises;

2/3 are in the automotive industry.[2]

1991/1992 1993/1994 1995/1996 1997/1998 1999/2000 2001/2002

Adobe Acrobat 7.0

Document

:-<342%*)#"%2L*,#(-#('*#!/(-<-(%+*#%2,/)($;

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Strategic Aspects in Supply Management

Relation between 6 Sigma levels and Quality Costs

2 308.537

3 66.807

4 6.210

5 233

6 3.4

! 88>

process

capability

defects per million

opportunities

2-(#433"%54G"*SiF]Tj#-6#2*(#)4"*)KiFSij#-6#2*(#)4"*)iFKij#-6#2*(#)4"*)zKj#-6#2*(#)4"*)

t/4"%(;#5-)()

'((3N``@@@9]<424&*$)9,*`('*<*2`)%bF)%&<4`E%b#E%&<49N#8$-Q*))*#-3(%<%*$*21#[/""F?*'"*$Ft/4"%(_(#)5'466*21#O*2,%(*#$4,%L4"#)(*%&*$2+-2#>%L*"#I4$$;1#O%5'4$,#E5'$-*,*$1#:4<3/)#A*$"4&#STTT

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Strategic Aspects in Supply Management

Relation between 6 Sigma levels and Quality Costs

8$-g*5(#G*2*6%()#-/(#-6#E%b#E%&<4#3$-g*5()NDw^)(%<4(*,#{Y#H%-9#)4+%2&)#G;#E%b#E%&<4#%2#(-(4"x#RW*2*$4"#^"*5($%5#KXXiFSTTTU

Dw^)(%<4(*,#{KY#H%-9#)4+%2&)x#R>-(-$-"4#KX\hFSTTfU

DwSTj#%<3$-+*<*2(#@%('#$*&4$,)#(-#)3*5%6%54(%-2#4,'*$*25*#%2#('*7BFI*"3#,*)L#3$-5*))x#RE@%))#.%6*U

DwO*,/5(%-2#-6#3$-5*))#5-)(#G;#]Tj#,/$%2&#3$-5*))%2&#-6#%2)/$425*#5*$(%6%54(*)#x#REL42,%4#.*G*2)+*$)%5'*$/2&#!WU

Dw7<3$-+*<*2(#-6#G--L%2&#$4(%-#G;#KTjxRW^#>-2*;#H42LU

D E%&2%6%542(#5-)(#$*,/5(%-2)#4(#X\j#-6#('*#3$-g*5()#4(#E%*<*2)#!p=9#

E%b#E%&<49N#8$-Q*))*#-3(%<%*$*21#[/""F?*'"*$Ft/4"%(_(#)5'466*21#O*2,%(*#$4,%L4"#)(*%&*$2+-2#>%L*"#I4$$;1#O%5'4$,#E5'$-*,*$1#:4<3/)#A*$"4&#STTTBl36*$#RSTT]UN#E%b#E%&<418$-g*L(<424&*<*2(#6Z$#[/""F?*'"*$Ft/4"%(_(#%2#,*$#!/(-<-G%"%2,/)($%*1#E9#Sf

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Strategic Aspects in Supply Management

Excursus out of the military world:

The paradon of the point of culmination and overexpansion

W$l&"*$1#[*/G4/*$#RSTTYUN#!p=#E^#^b3*$(#=4;)1#^%26Z'$/2&#E%b#E%&<41

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Strategic Aspects in Supply Management

The paradon of the point of culmination and overexpansion

H4)%)#! H4)%)#H

H-$,*$

E/33";#"%2*)

W$l&"*$1#[*/G4/*$#RSTTYUN#!p=#E^#^b3*$(#=4;)1#^%26Z'$/2&#E%b#E%&<41

Page 35: Strategic Aspects in Supply Management Florian Schupp 06.05

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Strategic Aspects in Supply Management

The paradon of the point of culmination and overexpansion

H4)%)#! H4)%)#H

J",#G-$,*$

E/33";#"%2*)

[*@#G-$,*$#R-+*$)($*))*,U

pullback force

E($4(*&;#34$4,-b-2N B'*#6/$('*$#('*#4,+425*#42,#('*#&$*4(*$#('*#+%5(-$;#('*#<-$*#,%66%5/"(#%(#@%""#G*#R4)#"-2&#4)#('*#-33-2*2(#)(%""#'4)#*2-/&'#I%2(*$"42,1#('*$*6-$*#,*3*2,*2(#-2#('*#('*4(*$#"*+*"U

3-%2(#-6#5/"<%24(%-2#|#3*4L#-6#)($*2&('

W$l&"*$1#[*/G4/*$#RSTTYUN#!p=#E^#^b3*$(#=4;)1#^%26Z'$/2&#E%b#E%&<41

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Strategic Aspects in Supply Management

Excursus out of the military world: Conclusion for Purchasing and SQM

2 76#('*#H/;*$#3/)'*)#(--#'4$,#-2#88:`88A#42,#('*#88>#"*+*"#5422-(#6-""-@1#*45'#88:`88A#+%5(-$;#G$%2&)#G-('#5"-)*$#(-#('*#,*6*4(#%2#6-$<#-6#$/22%2&#4@4;`&%+%2&#/3#-6#('*#)/33"%*$#-$#)/33";#%2(*$$/3(%-2#,/*#(-#G4,#C/4"%(;#3*$6-$<425*9

2 76#('*#Et>#3/)'*)#(--#'4$,#-2#('*#88>#"*+*"#42,#('*#88:`88A#5422-(#6-""-@1#*45'#88>#+%5(-$;#G$%2&)#G-('#5"-)*$#(-#('*#,*6*4(#%2#6-$<#-6#4#)/33"%*$#('4(#%)#2-(#5-<3*(%(%+*#42;#<-$*#42,#5-2)*C/*2(";#5422-(#G*#/)*,#42;#<-$*9

!#)/)(4%24G"*#)/55*))#542#-2";#G*#45'%*+*,(-&*('*$ G*(@**2#!8`H/;*$#42,#Et>

1

B'*$*#<%&'(#G*#4#3-%2(#@'*$*#2-#)/G)(42(%4"#6/$('*$%<3$-+*<*2(#542#G*#45'%*+*,#@%('#&%+*2#$*)-/$5*)9>%2%</<#%2#)/5'#4#54)*1#4#)/33"%*$#'4)#(-#G*#,*+*"-3*,9

2

372(*$*)(%2&N#B'*#@%22*$)#-6#('*#)/33"%*$#4@4$,)#%2#('*34)(#;*4$)#'4+*#)'-@2#4#C/4"%(;#"*+*"#-6#T#-$#T9b#33<9

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Strategic Aspects in Supply Management

What are the roles of the Buyer and Supplier Quality Manager

in the spirit of 6 Sigma?

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Strategic Aspects in Supply Management

The target of Six sigma is:

W$l&"*$#RSTTYUN#P4)#%)(#E%b#)%&<4V#?Z$('#STTYV#E9#Kf

'%&'

high"-@

"-@:*2(*$%2&

A4$%425*

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Strategic Aspects in Supply Management

The roles of Purchasing and SQM are:

'%&'

high "-@

:*2(*$%2&

A4$%425*

335`33+

33<`%25%,*2()

Buyer: O*)3-2)%G"*#6-$#5*2(*$%2&#-$#6-$#)'--(%2&#4(#('*#)@**(#)3-(-6#('*#)/33"%*$#3-$(6-"%-#@%('#$*&4$,)#(-#335`33+SQM: O*)3-2)%G"*#6-$#4#"-@#+4$%425*#42,#'%&'#3*$6-$<425*#-$#)'--(%2&6-$#('*#6*@#G*)(#)/33"%*$)#%2#33<`%25%,*2()Problem 1: B'*#,*)%$*#-6#('*#G/;*$#%)#(-#<4b%<%Q*#335`33+Problem 2: B'*#6*4$#-6#('*#Et>#%)#(-#&*(#4#'%&'*$#+4$%425*#42,#"-@*$#33<#42,#<-$*#%25%,*2()

W$l&"*$#RSTTYUN#P4)#%)(#E%b#)%&<4V#?Z$('#STTYV#E9#Kf

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Strategic Aspects in Supply Management

[-#<4((*$#%6#('*#Q*$-#,*6*5()#-3(%</<#$*4"";#*b%)()#-$#2-(1#4,,%(%-24"#$*)-/$5*)#(-#)/33-$(#6/$('*$#*b342)%-2#4$*#2-(#"%L*";#(-#G*#%2+*)(*,9

79*9#('4(#-2";#42#*2'425*,#5-""4G-$4(%-2#G*(@**2#H/;*$#42,#Et>#42,#4#5-2)*C/*2(#)/33"%*$#,*+*"-3<*2(#542#%<3$-+*#('*#$*)/"(9#

Does the Zero Defects optimum really exist for a company?

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Strategic Aspects in Supply Management

Agenda

Purchasing Strategy

Innovation

Supplier Quality Management

Psychological aspects

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Strategic Aspects in Supply Management

Mind your business – the brain and choice

E-/$5*N'((3N``@@@9G%Q*,95-9/L`5/$$*2(`<%2,`STTY}h`K]TiTh9'(<I/'2*21#:9>9#42,#02/()-21#H9#RSTTiU#B'*#2*/$4"#G4)%)#-6#6%2425%4"#$%)L#(4L%2&902/()-21#H9#O%5L1#E9#^""%-((#P%<<*$1#W9#8$*"*51#=9#42,#.-*@*2)(*%21#W9#RSTThU#[*/$4"#3$*,%5(-$)#-6#3/$5'4)*)9#[*/$-2#RifU#K]hFKiY9#

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Strategic Aspects in Supply Management

Panic vs. Desire – Why both buyers and SQMs need common processes

E-/$5*N#=%*#P*"(1#K]9Ti9STTh

!#)(/,;#-6#8);5'-"-&;#8$-6*))-$#H$%42#02/()-21#M2%+*$)%(;#-6#E(426-$,1#STTh

Test 1:

B'*#(*)(#3*$)-2)#&-(#ST#ME=#42,#f#%2+*)(<*2(#4"(*$24(%+*)#6-$#('*%$#5'-%5*9B'*#5-$$*)3-2,%2&#G$4%2#45(%+%(%*)#@*$*#$*&%)(*$*,#%2#4#>OB94U B'*#)*5/$*#%2+*)(<*2(N#K#ME=#$*(/$2#3*$#$-/2,#42,#('%)#&/4$42(**,GU !#5-<342;#)'4$*N#!#3$-G4G"*#KT#ME=#$*(/$21#G/(#%2#('*#@-$)(#54)*#4#"-))#-6#KT#ME=5U !#5-<342;#)'4$*N#!#3$-G4G"*#KT#ME=#"-))1#G/(#%2#('*#G*)(#54)*#4#&4%2#-6#KT#ME=H-/2,4$;#5-2,%(%-2N#7(#%)#2-(#*+%,*2(#@'%5'#-2*#%)#('*#)'4$*#@%('#('*#3$-G4G"*#$*(/$2#42,#++9

Results:

!6(*$#-2";#4#6*@#$/2)#('*#)5%*2(%)()#@*$*#4G"*#(-#3$*,%5(#('*#%2+*)(<*2()#-6#('*%$#(*)(#3*$)-2)9B'*#(*)(#3*$)-2)#('4(#%2+*)(*,#%2#('*#)*5/$*#-3(%-2#)'-@*,#G$4%2#45(%+%(;#%2#('*#72)/"41('*#342%5#5*2($*#-6#-/$#G$4%29B'*#(*)(#3*$)-2)#('4(#%2+*)(*,#%2#('*#$%)L;#-3(%-2#)'-@*,#G$4%2#45(%+%(;#%2#('*#[/5"*/)#455/<G*2)1@*$*#2*/$-"-&%)()#"-54(*#*b5%(*<*2(1#,*)%$*#42,#'433%2*))9

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Strategic Aspects in Supply Management

But ...

E-/$5*N#=%*#P*"(1#K]9Ti9STTh

999#72,*3*2,42(#-6#6*4$#-$#,*)%$*#4""#,*5%)%-2)#'4+*#G**2#"*,#G;#%2)(%25()9

7(#@4)#never the case ('4(#('*#G$4%2#$*&%-2#@4)#/)*,#('4(#%)#$*)3-2)%G"*#6-$#pragmatism

or rationality9

H-('#*<-(%-2)#@*$*#6-/2,#4"<-)(#%2#('*#)4<*#$4(%-#@%('#)"%&'(";#<-$*#6*4$#('42#,*)%$*9B'*#G$4%2#)%&24")#@*$*#*+*2#4G"*#(-#G*#<*4)/$*,#G*6-$*#('*#,*5%)%-2#%()*"61#%9*9#('*#45(%-2)-6#('*#(*)(#3*$)-2)#'4+*#G**2#3$*,%5(4G"*9

Conclusion:

72#-$,*$#(-#*2)/$*#4#<%2%</<#-6#3$4&<4(%)<#-$#$4(%-24"%(;11) systematic approaches for business decisions have to be applied:

E-/$5%2&#3$-5*))1#42,#)-/$5%2&#$/"*)1#*F4/5(%-2)1#*(592) the different players have to be meaningfully grouped together:

B'*#G/;*$)#42,#Et>#'4+*#(-#@-$L#(-&*('*$#4)#5"-)*";#4)#3-))%G"*3) supply targets have to be aligned:

H-('#G/;*$#42,#Et>#'4+*#(-#'4+*#G-('#43$`33+#42,#33<`%25%,*2()#(4$&*()%2#('*%$#3*$)-24"#(4$&*(#4&$**<*2()

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Test 2

E-/$5*N#=%*#P*"(1#K]9Ti9STTh

E4<*#)(4$(%2&#3-%2(#@%('#ST#ME=#(-#G*#%2+*)(*,9

B'*#(*)(#3*$)-2)#'4,#(-#)3-2(42*-/)";#%2+*)(#@%('%2#)*5-2,)#%2NE'-*)1#'42,#G4&)1#34%$)#-6#)L%*)#-$#)@**()9

B--#'%&'#3$%5*)#4"4$<*,#('*#72)/"4#R6*4$1#342%5U9!(($45(%+*#42,#4(#('*#)4<*#(%<*#5'*43#3$-,/5()#G$-/&'(#('*#2/5"*/)#455/<G*2)#(-#3"4;9

!")-#%2#('%)#(*)(#S#('*#6*4$#@4)#3$*,-<%242(9

Conclusion 1: B'%2L#(@%5*#G*6-$*#;-/#G/;9

But:

76#('*#(*)(#3*$)-2)#@*$*#(--#5-2)*$+4(%+*1#46(*$#4#6*@#$/2)#@%('-/(#G/;('*#G$4%2#4$*4#6-$#,*)%$*#$*45(*,#42,#G-/&'(#4")-#4(#'%&'*$#3$%5*)9

Conclusion 2:

SQMs: P4(5'#;-/$#G/;*$#5-""*4&/*)#54$*6/"";#@'*2#('*;#<4L*#)/33"%*$#,*5%)%-2)46(*$#"-2&#2*&-(%4(%-2)9

Buyers: =*6%2*#&--,#(4$&*(#5-)()#(-&*('*$#@%('#('*#HM#42,#Et>)9

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Strategic Aspects in Supply Management

Humans and Capuchin monkeys

E-/$5*)N#I/G*$(/)#H$*/*$1#!66*2#4/6#E5'2_335'*2g4&,1#8$%<4(*2#+*$'4"(*2#)%5'#_'2"%5'%$$4(%-24"#@%*#>*2)5'*21#@*22#E%*#*%2*2#A-$(*%"#+*$</(*21#EZ,,*/()5'*#o*%(/2&1#Sh9TS9STTX1#E9#KY.4/$%*#E42(-)1#0*%('#:'*21#A*2L4(#.4L)'<%24$4;42421#n4"*#M2%+*$)%(;1#

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Strategic Aspects in Supply Management

Monkeys behave as irrational as humans when anticipating an advantage

Source: S.J. Brams, M.A. Jones, C. Klamler, Better ways to cut a cake, in: Notices of the American Mathematical

Society, vol. 53, number 11, page 1314 – 21, 2006

D Blue and red candies (M&Ms), cognitive dissonance:

:43/5'%2#<-2L*;)#(-#5'--)*#G"/*#-$#$*,#542,%*)#@%('#)4<*#5'-5-"4(*#5-2(*2(972#('*#6%$)(#(*)(#3'4)*#('*#<-2L*;)#5'-)*#@%('-/(#3$*6*$*25*#6-$#G"/*#-$#$*,9H/(1#46(*$#4#@'%"*#('*#<-2L*;)#,%,#2-(#5'-)*#('-)*#542,%*)42;#<-$*#('4(#('*;#$*g*5(*,#G;#3/$*#5'425*#%2#('*#*4$"%*$#3'4)*#-6#('*#(*)(9Conclusion: B'*#<-2L*;)#@*$*#<-$*#42,#<-$*#5-2+%25*,#4G-/(#('*%$#*4$"%*$#542,;#5-"-/$#,*5%)%-242,#$*g*5(*,#('*#2-2F)*"*5(*,#5-"-/$#-6#('*#*4$"%*$#3'4)*9#B'*#<-2L*;)#('*$*6-$*#45(*,#%$$4(%-24"";9Transfer into Purchasing auctions: :-2(%2/-/)";#5'4""*2&*#3$*6*$$*,#R"%)()U#42, 3$*+%-/)";#2-(#)*"*5(*,#)/33"%*$)9#

D Bonus rather than malus:

^b3*$%<*2(*$#!#-66*$*,#S#&$43*)#(-#('*#<-2L*;)1#^b3*$%<*2(*$#H#-66*$*,#K#&$43*#(-#('*#<-2L*;)9H/(#%2#('*#<-<*2(#-6#($42)45(%-2#*b3*$%<*2(*$#!#*+*$;#S2,#(%<*#'*",#K#&$43*#G45L#42,#*b3*$%<*2(*$#H#+%5*#+*$)4#&4+*#-/(#S#&$43*)#%2)(*4,#-6#K9#?-$#('*#<-2L*;)#%(#@-/",#'4+*#<4,*#2-#,%66*$*25*#(-#G/;#4(#!#-$#H9[*+*$('*"*))#('*#<-2L*;)#C/%5L";#5'-)*#(-#G/;#6$-<#*b3*$%<*2(*$#H9Conclusion: !+*$)%-2#(-#"-))#"*4,)#(-#G-2/)#-$%*2(4(%-29Transfer into Purchasing auctions: M)*#G-2/)#%2)(*4,#-6#<4"/)

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Strategic Aspects in Supply Management

Monkeys behave as irrational as humans when anticipating an advantage

Source: S.J. Brams, M.A. Jones, C. Klamler, Better ways to cut a cake, in: Notices of the American Mathematical

Society, vol. 53, number 11, page 1314 – 21, 2006

D Readiness to assume risk:

^b3*$%<*2(*$#:#-66*$*,#S#&$43*)9#^b3*$%<*2(*$#=#-66*$*,#f#&$43*)1#G/(#6$-<#(%<*#(-#(%<*#&4+*#-/(#-2";#K9B'*#<-2L*;)#5'-)*#(-#G/;#6$-<#*b3*$%<*2(*$#=9

:-25"/)%-2N#B'*#6*4$#(-#"--)*#$*(/$2#"*4,)#(-#'%&'*$#$%)L9B$42)6*$#%2(-#8/$5'4)%2&#4/5(%-2)N#!/5(%-2#G%&#54L*)#42,#KTTj#$4('*$#('42#hTj#42,#fTj9

D Fear to loose ownership:

>-2L*;)#+4"/*#42#-Gg*5(#('4(#('*;#-@2#<-$*#('42#42#-Gg*5(#('4(#('*;#,-#2-(#-@29

:-25"/)%-2N#E4"*)#42,#3/$5'4)*#3$%5*#,%66*$9B$42)6*$#%2(-#8/$5'4)%2&#4/5(%-2)N#B'*#%25/<G*2(#)/33"%*$#@%""#G*#<-$*#4&&$*))%+*#('42#('*#2*@#-2*9

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Better ways to cut a cake

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Listen to preferences

E-/$5*N#E9a9#H$4<)1#>9!9#a-2*)1#:9#0"4<"*$1#H*((*$#@4;)#(-#5/(#4#54L*1#%2N#[-(%5*)#-6#('*#!<*$%542#>4('*<4(%54"#E-5%*(;1#+-"9#if1#2/<G*$#KK1#34&*#KfK]#v SK1#STTY

D The parents test:

I-@#(-#5/(#('*#54L*#%2#4#64%$#@4;#4<-2&)(#S#L%,)u#J2*#(-#5/(1#-2*#(-#5'--)*9

D But: What happens if the cake is 50% covered with icing and 50% with chocolate topping?

J2*#L%,#"-+*)#5'-5-"4(*1#G/(#2-#%5%2&1#('*#-('*$#L%,#"%L*)#G-('#(-33%2&)9P'%"*#&*((%2&#iTj#%2#C/42(%(;1#K#L%,#<%&'(#6%2,#'%)#3%*5*#-6#54L*#"*))#+4"/4G"*#G*54/)*-6#('*#"45L#-6#3$*6*$$*,#(-33%2&9

D Solution:

H-('#L%,)#6%$)(#'4+*#(-#%26-$<#4G-/(#('*%$#3$*6*$*25*)#G;#+4"/%2&#*45'#34$(#-6#('*#54L*9B'*2#*45'#L%,#&*()#4#3%*5*#-6#('*#54L*#('4(#%)#*C/4"";#+4"/4G"*#(-#('*#&*-<*($%5#'4"6#-6#('*#54L*979*9#('*#5'-5-"4(*#"-+%2&#L%,#@-/",#&*(#4#&--,#34$(#-6#('*#5'-5-"4(*#'4"61#G/(#2-(#4""9B'*#S2,#L%,#@-/",#&*(#('*#5-<3"*(*#'4"6#@%('#%5%2&#(-33%2&9B'*#$*<4%2%2&#34$(#@%""#G*#)'4$*,#G;#4#+4"/*#-6#iTNiT9

D Result: H-('#L%,)#'4+*#45'%*+*,#4#)/55*))9#H-('#L%,)#*+*2#<%&'(#('%2L#('4(#('*;#'4+*#&-(<-$*#('42#('*#&*-<*($%5#'4"6#-6#('*#54L*9

D By the way: B'*#<*('-,#%)#4")-#,*5*3(%-2#3$--61#4)#('*#-2*#@'-#3$*(*2,)#@$-2&#3$*6*$*25*)6%24"";#@%""#&*(#"*))#$*(/$2#('42#%(#@-/",#'4+*#G**2#('*#54)*#@%('#($/*#3$*6*$*25*#)(4(*<*2()9

D Transfer into Purchasing auctions: .%)(*2#(-#3$*6*$*25*)#-6#;-/$#)/33"%*$)#42,#;-/#@%""#&*(#"-@*$#3$%5*)9