supply chain management - hacettepe universityalkar/sec510/hacettepe_wk10_fy19_sc… · page 41...

Supply Chain Management

Hacettepe University, 2018-2019

Gözde KONCA & Kutlay TOPRAK

03.05.2019

Unrestricted © Siemens AG 2019

2019-05-03 G.Konca / K.Toprak - SCM

Agenda

2 Supply Chain Management Functions

3 Procurement Process

4

Negotiation Excellence

1Introduction to Supply Chain

Management

5

6

Logistics Process

Compliance



Agenda

8

Lessons Learned & Best Practise

9

Case Study

10

Q&A

7

Digitalization

11

12

Contract Management

Supplier Management



Gözde Konca

Project Procurement Manager

Mechanical Engineer

[email protected]

Kutlay Toprak

Project Procurement Manager

Mechanical Engineer

[email protected]

mailto:[email protected]

mailto:[email protected]



Supply Chain Management



Product Lifecycle Management

Customer

Sales R&D Production Logistics

Product Logistics

&

Distribution

Production

Plannig

Procurement Quality

Assurance

Aftersales

Marketing



What are the customer needs?

Internal CustomerSales, Production, Quality, Project Management, R&D, Aftersales

Profit

Cost Reduction

Quality

Speed



What are the customer needs?

External CustomerEnd Users, Main Contractors, Distributors

Delivery On Time

Cost Reduction

Quality



Product Lifecycle Management

Customer

Sales R&D Production Logistics

Product Logistics

&

Distribution

Production

Plannig

Procurement Quality

Assurance

Aftersales

Marketing



Supply Chain Management Functions

Procurement

Production

Project

Indirect

Retail

Supplier Quality

Audits

Evaluation

Supplier KPIs

Business Excellence

Compliance

Guidelines

Tools

Import & Export

Customs Clearance

Regulations

Export Customs

Control (ECC)

Logistics

Internal

International



Procurement Types

PROJECT PROCUREMENT

• OutsouRce Services

• 3rd Party Equipments

• Site Essentials

Internal Customers:

Project Management

PRODUCTION PROCUREMENT

• Raw Material

• Co-Deisgn Products

• R&D Product Developments

Internal Customers:

R&D, Quality Control, Aftersales

INDIRECT PROCUREMENT

• Production Equipments

• Personnel Transportation

• Maintenance Services

• IT Tools

• Catering & Cleaning Services

• Licences

Internal Customers:

All Facility Units

RETAIL PROCUREMENT

• Re-negotiations

• Benefit Contracts

Internal Customers:

Sales



Procurement in Energy Categories

Generators

Piping

ACC & Boiler

Turbines & Blades

Lifting Equipments

InsulationTransfer

Accomodation

Consumables

Chemicals & Oils

Scaffoldage

Mechanical Manpower



Procurement Process

Currency Negotiation Compliance Contract

Offer Feasiblity DiscountsDeadline



Procurement Process

1

3

2

Evaluation & Supplier Selection

• Cost Analysis

• Deadline

• Payment

• Negotiation

Auction & Bidding

• Definition of requested products/services

• Specifications

Supplier Pre-Selection

• Reliabilty

• Financial Status

• Reference Check

Pre

-Sele

cti

on

Au

cti

on

Evalu

ati

on



You have 15 minbreak



Logistics Process

Payments

International Transportation

Invoicing Import & Export

Purchase OrdersLOGISTICS

Internal Transportation



Logistics Process

Mostly used

EXW (Exworks) : Delivery at supplier facility

FCA (Free Carrier) : Delivery at customer’s another delivery point

DAP (Delivery at Place) : Delivery on customer site

Others

FAS, FOB, CIF, CIP, DAT, DDP

Incoterms are a set of rules which define the

responsibilities of sellers and buyers for the

delivery of goods under sales contracts. They are

published by the International Chamber of

Commerce (ICC) and are widely used in

commercial transactions.



ERP Systems



Compliance

Supplier Selection

Invoice Reports

Auctions Finance

Responsibilities

PO Reports

When you engage in business, there are many forms of compliance that your company and its employees must

uphold. “Compliance” refers to sticking to the rules. Meaning, you need to comply with relevant legislation, as well as

any internal or external standards



Compliance



Questions and Answers

AQ




Currency Negotiation Compliance Contract

Offer Feasiblity DiscountsDeadline




AQ



You have 15 minbreak



Supplier Management

Objectives

The SCM value-driven approach for a quality oriented Supplier Management (SM) system aims:

... to reduce risks, minimize process costs and avoid supplier-caused non conformance costs in the

supply chain on a preventive and long-term basis over the entire product-/project lifecycle

… to strengthen the company‘s competitiveness and promote innovations by integrating the right

suppliers on basis of a cross-functionally aligned strategy

… to monitor and continuously improve suppliers‘ performance based on clearly defined criteria and

key performance indicators.

This includes various actions of the Supplier (Quality) Management communities towards taking influence

on the definition of supplier strategies and objectives as well as the relevant supplier value management

methods, processes, systems and IT-applications.

All these measures aim to safeguard and continuously improve suppliers’ overall performance – to the

benefit of internal and external customers.



Supplier Management

Principles



Supplier Management

Strategy

Strategic supplier segmentation based on the

supplier strategy ensures, that the company

systematically selects qualified, high-performing and

innovative suppliers in accordance with standardized

criteria.

This, in turn, makes it possible to focus the internal

resources of the company on the strategic suppliers.

Depending on the relevant supplier strategy, high

strategic relevant suppliers must be integrated into the

development process at an early stage for project and

product business.



Supplier Management

Supplier Performance Management –Target of criteria sets

• The philosophy of the criteria is based on the comparison between company’s satisfaction with the

supplier and the respective requirements towards supplier.

• Principal:

What do we expect from Supplier? – How does Supplier fulfill those expectations?

• Even if a supplier does not meet the areas of activity listed in the evaluation hints, Evaluator can be

satisfied with the supplier’s performance, because the respective fields of action are not requirements

for the actual rated supplier.



Supplier Management

Supplier Performance Management – Evaluation



Supplier Management

Supplier Performance Management – Development

SUPPLIER

DEVELOPMENT PLAN

Strategic Levers

Technology Levers

TARGET AGREEMENT

Quality Levers

Audit Findings



Contract Management

EHS

Payment Terms

Penalty & Milestones Technical Specifications

Quality ManagementCONTRACT

Code of Conduct

Elements of a Contract


2019-05-03 G.Konca / K.Toprak - SCMPage 39

What does it mean when we talk about implementation

of digital transformation journey?

Digitization Digitalization Digital

Transformation



Digital

Transformation

Digitalization

Page 40



Digitizationis the process of changing from existing analog

data into digital form.



Digital

Transformation

Page 41





Digitalizationis the usage of digital technologies to change

operations and business models to provide new

value driven business opportunities.







Digitalizationis the usage of digital technologies to change

operations and business models to provide new

value driven business opportunities.

Digital

Transformationleverage digital technologies, change the way of

working and create a new digital mindset and

culture on the basis of an integrated approach.



The speed of exponential growth - let´s do a short quiz!

How long did it take to reach worldwide 50 million users?

75

years

38

years

13

years

3

years

1

year

5

DAYS!



We have to consider "Digitalization" in various dimensions

and from a value chain perspective!



VUCA does not happen in the future – it is the current

environment in which we are already living and working

VUCAVolatile with unstable changes

Uncertain with unknown outcomes

Complex with many interconnected parts

Ambiguous with lack of clarity



RPA: “Future of Work”

Works

7/24

50x faster than manual work

Error proof

Ease on reporting

Creating huge data

Blueprism

Next 5 Years:

Annual GrothRate of 60.5%

110-140’ new jobs

$6.7 trillioneconomic

impact

RPA is sum of software & services to automate “repetitive” & “rule-based” works,

by simulating humans, to allow humans focus on tasks that can only be achieved

by humans.



How does it work?

0102

03

ANALYZE01SIMPLIFY02

DIGITALIZE03

Your digital assistant Bilge is now helping you with SCM issues to make your life easier.

With AI, our chatbot Bilge is ready to support you both in the office and on site as mobile on Circuit

Current status of RFOs

When should I make a contract?

What is incoterms?

What is Correct Buying?

What are payment terms?

Your Digital SCM Assistant Bilge

Where can I find SCM guidelines?

How can I register a supplier?

How can I get credit card?

How can I change approvers on SCM tool?

What is express purchasing?

How can I get visa?

How can I make hotel reservation?

Current status of RFOs/RFQs;

FAQ and answers based on SCM

guidelines

Bilge can answer now;

Video


Q&A inputs

Digital Twin Training Panel & Machine Learning

Multilanguage : Turkish – English


Kick-Off Between SCM & IT

&

Digital Ecosystem Team

Implementation to Circuit

FAQ based on guidelines

SAP integration

Invoice follow up, vendor information

Daily improvement

Training Chatbot & Providing More Answers

RFO follow up RPA Integration to chatbot for SCM

activities

E-catalogue orders via Chatbot «Bilge»

«Digital Twin»

of each employee

Project by Digital Transformation Programme

& Digital Ecosystem Team


further

What is RPA / RDA?





AQ



Thank YouGözde Konca & Kutlay Toprak

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