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Supply Chain Management
Hacettepe University, 2018-2019
Gözde KONCA & Kutlay TOPRAK
03.05.2019
Unrestricted © Siemens AG 2019
2019-05-03Page 2 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
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Agenda
8
Lessons Learned & Best Practise
9
Case Study
10
Q&A
7
Digitalization
11
12
Contract Management
Supplier Management
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Gözde Konca
Project Procurement Manager
Mechanical Engineer
Kutlay Toprak
Project Procurement Manager
Mechanical Engineer
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Supply Chain Management
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Product Lifecycle Management
Customer
Sales R&D Production Logistics
Product Logistics
&
Distribution
Production
Plannig
Procurement Quality
Assurance
Aftersales
Marketing
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What are the customer needs?
Internal CustomerSales, Production, Quality, Project Management, R&D, Aftersales
Profit
Cost Reduction
Quality
Speed
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What are the customer needs?
External CustomerEnd Users, Main Contractors, Distributors
Delivery On Time
Cost Reduction
Quality
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Product Lifecycle Management
Customer
Sales R&D Production Logistics
Product Logistics
&
Distribution
Production
Plannig
Procurement Quality
Assurance
Aftersales
Marketing
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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
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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
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Procurement in Energy Categories
Generators
Piping
ACC & Boiler
Turbines & Blades
Lifting Equipments
InsulationTransfer
Accomodation
Consumables
Chemicals & Oils
Scaffoldage
Mechanical Manpower
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Procurement Process
Currency Negotiation Compliance Contract
Offer Feasiblity DiscountsDeadline
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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
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You have 15 minbreak
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Logistics Process
Payments
International Transportation
Invoicing Import & Export
Purchase OrdersLOGISTICS
Internal Transportation
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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.
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ERP Systems
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ERP Systems
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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
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Compliance
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Questions and Answers
AQ
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Negotiation Excellence
Currency Negotiation Compliance Contract
Offer Feasiblity DiscountsDeadline
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Negotiation Excellence
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Negotiation Excellence
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Negotiation Excellence
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Negotiation Excellence
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Questions and Answers
AQ
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You have 15 minbreak
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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.
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Supplier Management
Principles
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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.
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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.
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Supplier Management
Supplier Performance Management – Evaluation
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Supplier Management
Supplier Performance Management – Development
SUPPLIER
DEVELOPMENT PLAN
Strategic Levers
Technology Levers
TARGET AGREEMENT
Quality Levers
Audit Findings
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Contract Management
EHS
Payment Terms
Penalty & Milestones Technical Specifications
Quality ManagementCONTRACT
Code of Conduct
Elements of a Contract
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What does it mean when we talk about implementation
of digital transformation journey?
Digitization Digitalization Digital
Transformation
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Digital
Transformation
Digitalization
Page 40
What does it mean when we talk about implementation
of digital transformation journey?
Digitizationis the process of changing from existing analog
data into digital form.
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Digital
Transformation
Page 41
What does it mean when we talk about implementation
of digital transformation journey?
Digitizationis the process of changing from existing analog
data into digital form.
Digitalizationis the usage of digital technologies to change
operations and business models to provide new
value driven business opportunities.
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What does it mean when we talk about implementation
of digital transformation journey?
Digitizationis the process of changing from existing analog
data into digital form.
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.
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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!
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We have to consider "Digitalization" in various dimensions
and from a value chain perspective!
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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
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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.
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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
Your Digital SCM Assistant Bilge
Q&A inputs
Digital Twin Training Panel & Machine Learning
Multilanguage : Turkish – English
Your Digital SCM Assistant Bilge
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
Your Digital SCM Assistant Bilge
further
What is RPA / RDA?
Your Digital SCM Assistant Bilge
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Questions and Answers
AQ
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Thank YouGözde Konca & Kutlay Toprak