Sourcing and Supplier Management

Helmut Schtt CIO Mercedes-Benz Cars & Vans

Automotive Day - 3. Mrz - CeBIT2011 Hannover Automotive Day - 2011 3. Mrz - CeBIT

Hannover
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Agenda
1 2 3 4 5 6 Daimler Operating Model Sourcing and Supplier Management Processes Sourcing Strategy Supplier Strategy Engagement Model Supplier Quality Management

Automotive Day - 3. Mrz 2011 - CeBIT Hannover

The Daimler IT Strategy built on one Operating Model

IT Strategy Management Enterprise Architecture Management Project and Program Management Business Partner Business Partner

Demand Management

Service Delivery

Service Operation

Sourcing and Supplier Management

Service Quality Management and Continuous Improvement Skill Management IT Financial Management

Common processes & tools are the basis to improve ITs efficiency & effectiveness
Automotive Day - 3. Mrz 2011 - CeBIT Hannover

Agenda
1 2 3 4 5 6 Daimler Operating Model Sourcing and Supplier Management Processes Sourcing Strategy Supplier Strategy Engagement Model Supplier Quality Management

Automotive Day - 3. Mrz 2011 - CeBIT Hannover

Sourcing and Supplier Management Processes

IT Strategy, Demand, Skill Mgmt, Quality Mgmt 1 Sourcing & Supplier Strategy 2 3
Sourcing Strategy Supplier Strategy Engagement Models External Balanced Scorecard

Value Map *

Suppliers Segments & Target Landscape

Engagement Models & Selection Rules

Supplier Quality Management 6

Supplier Quality Management

Suppliers

Service Delivery, PPM, Service Operations

Sourcing Management 5
Supplier Planning Preparation Sourcing Request Management Supplier Engagement

* production depth, supplier segment, skill level

The Sourcing & Supplier Management Processes are highly integrated and produce major relevant deliverables to support the IT Operating Model.
Automotive Day - 3. Mrz 2011 - CeBIT Hannover

Agenda
1 2 3 4 5 6 Daimler Operating Model Sourcing and Supplier Management Processes Sourcing Strategy Supplier Strategy Engagement Model Supplier Quality Management

Automotive Day - 3. Mrz 2011 - CeBIT Hannover

Sourcing Strategy
Value Map In-house Production Depth for Task Execution
Activity Cluster
Core
<
Core activity cluster
Business Partner Management Project Management Management & Governance

Roles
-> Business Relationship Manager, Pipeline Manager... -> Program/Project Management -> ISO, EAM Architect, SSM Strategist, QIO...

High complex & integrated

Standard

HC & I activity cluster

Demand & Requirement Management Service Design Service Management

Roles
-> Business Consultant, Requirements Engineer -> Service Architect, Test Architect... -> Change Coordinator, Release Manager...

Standard activity cluster

Project Support Service Maintenance Operations Management

Roles
-> PMO -> Service Level Admin, Change Requestor... -> Incident Manager, Problem Manager...

Non core activity cluster

Roles
-> Application Developer, Tester -> 1st Level Support -> Incident Analyst, Event Analyst...

Non core

Project & Enhancement Development Service Support Operations Execution

Commodity
Task execution: In-house Partly in-house Mainly in-house External

Essential

Differentiator

The Value Map is a two dimensional matrix that can be used to visualize the in-house production depth.
Automotive Day - 3. Mrz 2011 - CeBIT Hannover

Agenda
1 2 3 4 5 6 Daimler Operating Model Sourcing and Supplier Management Processes Sourcing Strategy Supplier Strategy Engagement Model Supplier Quality Management

Automotive Day - 3. Mrz 2011 - CeBIT Hannover

Supplier Strategy
Supplier Portfolio Control-Cycle

Capture IST / Adjustment

Portfolio Consolidation / Integration

Portfolio Usage

Strategy Development
Central Supplier Manager Procurement

External Balanced Scorecard

Transition & Purchasing alignment

Automotive Day - 3. Mrz 2011 - CeBIT Hannover

Supplier Strategy
Consolidated Supplier Portfolio
Supplier type Organisation

11 Technology Main-Cluster based upon IT Technology Roadmap

Application Development Data Management Systems Management Telecommunications Business Packages

Managed Services
Application Maintenance Services User Helpdesk Operations Full-Service

A
Central Managed 60% Volume

Supplier 1 volume Supplier 2 volume Supplier 3 volume Supplier 4 volume Supplier N volume

20 Supplier

B
20% Volume

20 Segments x 20 Supplier = 400 Supplier

B
15% Volume
Locally Managed

C
5% Volume

Managed C Supplier1
(max per release order)

Automotive Day - 3. Mrz 2011 - CeBIT Hannover

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Agenda
1 2 3 4 5 6 Daimler Operating Model Sourcing and Supplier Management Processes Sourcing Strategy Supplier Strategy Engagement Model Supplier Quality Management

Automotive Day - 3. Mrz 2011 - CeBIT Hannover

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Engagement Model

Engagement model Governance model Supervision mechanisms, reporting principles, etc. Commercial model Time & material/ fixed price/ shared reward, etc. Location Standard & policies Project handbook, architecture policies etc. In-house production depth Tasks for in-house staff, tasks for external supplier

Onsite/ offshore/ nearshore, etc.

The engagement model consists of 5 aspect areas and is influenced by different processes as well as by other issues.
Automotive Day - 3. Mrz 2011 - CeBIT Hannover

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Agenda
1 2 3 4 5 6 Daimler Operating Model Sourcing and Supplier Management Processes Sourcing Strategy Supplier Strategy Engagement Model Supplier Quality Management

Automotive Day - 3. Mrz 2011 - CeBIT Hannover

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Supplier Quality Management

First First II check, check, if if the the supplier supplier already already has has a a central central or or local local External External Balanced Balanced Scorecard. Scorecard. If If not not -- II collect collect the the performance performance parameter parameter about about the the supplier supplier and and find findan anagreement agreement with with him. him. Then Then II collect collect the the ratings ratings from the rater. from the rater.
7.6.1 7.6.1 Collect Collect & &analyze analyze Supplier Supplier data data

2.

Interesting! Interesting! Based Based on onthe the analyzed analyzed data data II can check, weather we can check, weather we have have chosen chosen the the right right supplier! supplier! Otherwise Otherwise we we need need to to adjust adjust our our supplier supplier portfolio. portfolio. 3.
7.6.2 7.6.2 Asses Assessupplier supplier performance performance 7.6.3 7.6.3 Perform Perform supplier supplier development development

Anybody Anybody is is welcome welcome to togive give his input for his input for a a performance performance measurement measurement method. method.
7.6.4 7.6.4 Define performance Define performance measurement measurement method method

II need need a a Local Local EBSC EBSC for an important for an important supplier! supplier!

1.

Ok s Ok let let s start! start!

Wow! Wow! That That is isa a great great process! process! It It helps helpsme me to to improve improve my my performance! performance!

Still Still room room for for improvement! improvement! Together Together we we will will define define fields fields of of action in order action in order to to obtain obtain the the best best customer customer 4. satisfaction. satisfaction.

Supplier Sourcing & Supplier Manager Supplier Strategist

Automotive Day - 3. Mrz 2011 - CeBIT Hannover

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Thank you for your attention! Thank you for your attention!

Automotive Day - 3. Mrz 2011 - CeBIT Hannover

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