Supplier Value Management
Proposing a Concept based on Customer Value Management
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Beschreibung
The increasing competitiveness of the international business environment has driven many companies to search for improved cost-saving methods. Therefore, the decision to shift procurement to a strategic function has gained importance, since a large part of the firms’ revenues are spent by this function. Supplier selection is probably one of the most important processes of procurement considering that during this stage customers select their suppliers by weighting different attributes such as quality, price, company culture, and delivery performance etc. The supplier selection process is comprised of complex decision-making criteria, which are sometimes conflicting and which require an overview of the entire purchasing process. Hence, this research paper aims to find an improved Supplier Value Management (SVM) method that offers an integrated view of the supplier management process. Based on this method the sourcing specialists can make their supplier selection decisions having more data available about the suppliers and their competitors. The Supplier Value Management concept is built by adapting insights from a sales-related concept – Customer Value Management (CVM). In addition to Supplier Value Management, this paper presents a standardized method for evaluating suppliers – Intelligent Supplier Relationship Management System (ISRMS) – which helps the supplier selection process by assessing criteria from an objective point of view. Two research methodologies are used to collect data for this paper. First of all, previous academic research on procurement- and sales- related topics has been considered. Secondly, an interview has been conducted with a commodity manager from Airbus Operations GmbH Bremen who presented her view on supplier selection and general aspects regarding managing the supplier relationship.
The increasing competitiveness of the international business environment has driven many companies to search for improved cost-saving methods. Therefore, the decision to shift procurement to a strategic function has gained importance, since a large part of the firms’ revenues are spent by this function. Supplier selection is probably one of the most important processes of procurement considering that during this stage customers select their suppliers by weighting different attributes such as quality, price, company culture, and delivery performance etc. The supplier selection process is comprised of complex decision-making criteria, which are sometimes conflicting and which require an overview of the entire purchasing process. Hence, this research paper aims to find an improved Supplier Value Management (SVM) method that offers an integrated view of the supplier management process. Based on this method the sourcing specialists can make their supplier selection decisions having more data available about the suppliers and their competitors. The Supplier Value Management concept is built by adapting insights from a sales-related concept – Customer Value Management (CVM). In addition to Supplier Value Management, this paper presents a standardized method for evaluating suppliers – Intelligent Supplier Relationship Management System (ISRMS) – which helps the supplier selection process by assessing criteria from an objective point of view. Two research methodologies are used to collect data for this paper. First of all, previous academic research on procurement- and sales- related topics has been considered. Secondly, an interview has been conducted with a commodity manager from Airbus Operations GmbH Bremen who presented her view on supplier selection and general aspects regarding managing the supplier relationship.
Autor*in
Mihai C Ionita