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Increasing the resilience of global supply chains through holistic approach

Increasing the resilience of global supply chains through holistic approach

How should complex supply chains be designed so that they are resilient to risks of all kinds and adapt agilely to dynamic market conditions? How can a cost-efficient procurement strategy be implemented that leads to tangible cost savings thanks to intelligent demand bundling and optimized operational procurement processes? How can the interaction with suppliers be…

Focus on innovation: an interview with board member Dr. Stefan Brandner

Focus on innovation: an interview with board member Dr. Stefan Brandner

Innovation is one of our five leadership values. In an interview with SupplyOn board member Dr. Stefan Brandner, find out how we define innovation, the role it plays in our long-term strategy, and how we ensure that all employees across hierarchies and in all areas can participate in it. Learn about internal best practices and…

Leonardo extends AirSupply to the entire supply chain and kicks off second phase of Leap

Leonardo extends AirSupply to the entire supply chain and kicks off second phase of Leap

From 2018 to 2021, the value of production in the Leonardo-led supply chain grew by 14 percent, from 21.4 to 24.4 billion euros. How was this possible? Leonardo is a large defense and aerospace company, a sector that in Italy includes other major players such as Thales Alenia Space, Avio Aereo and Macaer. The company…

Industry News

Aircraft Supplier Summit 2022: successful premiere at Leipzig Airport

Co-organized by the Berlin Institute Supply Chain Management, the German OEM Deutsche Aircraft hosted the first Aircraft Supplier Summit on November 15 and 16, 2022 at Leipzig Airport.Leipzig is the chosen final-assembly-line (FAL) location for the D328eco, the groundbreaking, forward-looking platform building upon the legendary Dornier Do328 aircraft, for which Deutsche Aircraft is the type certificate holder. The D328eco will rely on Sustainable Aviation Fuel (SAF) as transition to zero-emission flying. Planned by 2030, also hydrogen propulsion will be explored. The FAL construction is planned to start in 2023 already.Key topics of this summit wereHow Deutsche Aircraft and its partners shape the future of sustainable flyingCreating supply chain resilience in a VUCA* worldTechnology-enabled supplier collaborationESG* as a new mindset, towards improved sustainabilityPartnership between Deutsche Aircraft and its suppliersImproving supplier collaboration & supply chain resilienceIt is impossible to mention all the highly interesting keynotes with the all the valuable insights. Therefore, just some highlights from SupplyOn perspective:BoostAeroSpace CEO Rodolphe Péricat explained how the organization contributes to technology-enabled supplier collaboration. Building on  a strong industry community, it addresses increased security needs and governs dedicated supplier collaboration platforms, including SupplyOn AirSupply.Deutsche Aircraft has chosen SupplyOn as strategic partner in order to digitally manage collaboration with suppliers and enable structured communication.ThyssenKrupp Aerospace CEO Patrick Marous shared how they foster supply chain resilience with their Supply Chain Control Tower. By considering resistance, forecast, avoidance, inventory and capacity buffers it secures the company’s ability to deliver in a VUCA world.One highlight of the summit for sure was the awarding & contract signature ceremony live on stage for two new suppliers of Deutsche Aircraft: Bucher Leichtbau from Fällanden, Switzerland, and Elbe Flugzeugwerke (EFW), Dresden. The latter is also a SupplyOn customer for AirSupply.Great forum, to be continuedThe Aircraft Supplier Summit was a unique opportunity to exchange with decision makers of Deutsche Aircraft. It was also a good forum for face-to-face discussions with strategic partners and suppliers.To wrap up, attendees were asked to provide their feedback on the event. Among the key take-ways mentioned were insights on  supply chain resilience, sustainability, and technology as an enabler. But also partnership and inspiration were important attributes of the conference.The next Aircraft Supplier Summit is already scheduled: Nov 7 and 8, 2023, again in Leipzig. See you then! --*VUCA: volatility, uncertainty, complexity, ambiguity** ESG: environment, social, governance 
Aircraft Supplier Summit 2022: successful premiere at Leipzig Airport
SCM Insights

100% compliance in purchasing: from duty to high performance

As explained in my last blog article "Four steps to achieve 100% compliance in purchasing", purchasing organizations that take the topic of compliance seriously should first create a solid basis with the introduction of standardized processes and tools in order to achieve company-wide transparency and consistency in their purchasing activities. This allows mandatory topics such as avoiding bribery or maverick buying to be brought under control.Today’s world is more complexBut compliance today encompasses much more than the purely mandatory topics and has become significantly more extensive, complex and dynamic. Purchasing is ideally positioned for these new requirements thanks to its central role in the company.Examples of the new requirements are:More comprehensive risk management in the supply chainHigher requirements for IT security and data protectionNew legal requirements, which can vary greatly from country to country For example, the Supply Chain Due Diligence Act or Conflict Minerals Reporting based on the Dodd-Frank ActSanctionsFor example, in the case of violations of the human rights of UyghursConstantly increasing requirements from customers or from our own product marketingFor example, the reduction of the CO2 footprintThe good news is: to address these new challenges, you can build on solutions that are already in place. The core processes of purchasing, which are already digitized today, can be relatively easily supplemented with further needs from compliance and risk management.In this context, it is not only important that all relevant departments internally, i.e., quality assurance, logistics, product development, data and security management, compliance management, etc., are involved in the processes, but also that the results of these processes are available for strategic purchasing decisions. For this to succeed, purchasing must become active at an early stage and needs access to these other areas.Key player: the Sourcing Decision SheetAs in my last blog article, I would like to explain the practical implementation using our customer Continental Automotive as an example. Just as for the Rfx process, uniform processes and software tools were defined for the various compliance topics and made available via the SupplyOn solutions. The aim here is also to involve suppliers at an early stage and to provide them with central access via SupplyOn to maintain the necessary information.At Continental Automotive, the so-called Sourcing Decision Sheet, which forms the basis for decision-making by the Purchasing Council at Continental and which used to be based primarily on price and conditions, has been and will continue to be successively supplemented with information from the various compliance aspects. As a result, these are also automatically taken into account in the supplier selection. The decisions made by the strategic purchasing committee are in turn recorded and documented centrally in the tool.Here are some examples of data that automatically flows into Continental Automotive's Sourcing Decision Sheet from non-purchasing areas:Risk Management: Suppliers of production material must include in their bids all locations that will be relevant for the production of the requested parts. Based on their geo-location, all specified locations are automatically classified and assigned to the risk categories specified by Continental.Supplier Assessment: Performance data is already available for suppliers with whom Continental Automotive has been working for some time — both at site and commodity level.Feasibility Study: For new parts to be developed, feasibility analyses with regard to technology, quality and logistics are carried out in parallel with the sourcing process with the suppliers in question. This process is supported by the SupplyOn Technical Review service.Certificates: All suppliers are required to enter their status for standard industry certificates in the SupplyOn Business Directory. Depending on the certificate type, availability is sometimes even a mandatory prerequisite for being awarded a contract.Compliance: Adherence to guidelines and regulations can be flexibly queried from the supplier or alternatively integrated from external data sources or customer systems.  All these different aspects flow into the Sourcing Decision Sheet and generate a holistic picture based on formulas and weightings that can be defined freely. Purchasing thus has a flexible and scalable tool at its disposal for effortlessly mastering all aspects relevant to procurement. This means that purchasing is well equipped not only for current challenges, but also for those of the future.Action recommendations at a glanceIn summary, here are the steps that should be followed in order to cover all aspects and achieve 100% compliance in purchasing:The dutyFirst of all, it is necessary to introduce uniform and company-wide binding core processes that are anchored in the organization via suitable tools. In this context, increasing master data quality is a very important aspect. High data quality is a prerequisite for any kind of digitization and thus a homework assignment for all organizations involved. The good news is that digitization not only requires high master data quality, but also supports and enables it.The extra mile for even higher performanceThe extra mile consists of supplementing the core aspects in the award process — i.e., price and conditions — with all aspects of a 360-degree compliance management process and integrating these into the strategic decision-making process.
100% compliance in purchasing: from duty to high performance
Supplier Community

Supplier Community Event: relevant CO2 information for suppliers — for the first time live from the studio

Our Supplier Community Events are highly appreciated by suppliers. High attendance figures and constant positive feedback from the audience have now prompted us to give it an even more professional touch: Our new SupplyOn Studio debuted at the last Supplier Community Event — and it was a complete success! Read all about it here for yourself...Not only do we have cutting-edge equipment, but also guest speakers from Schaeffler and Continental Automotive:Prof. Dr. Florian Schupp, SVP Purchasing & SM Automotive at Schaeffler, provided deep insights into Schaeffler's climate neutrality targets in his keynote speech. He reported on the "Supplier Sustainability Innovations Automotive Europe Summit", introduced the concepts behind the action areas Green Materials, Green Production, Green Energy, as well as Green Data, and demonstrated how CO2 values influence the selection of new suppliers and thus Schaeffler's sourcing process. Also, the collaboration with existing suppliers is changing at Schaeffler as they are expected to hand over CO2 values together with the ASN (Advance Shipping Notification) in the future. In addition, certificates will be requested in order to be able to ensure that ESG* targets can be met. A 25 % reduction of Scope 3 emissions seems to be a quite ambitious, but feasible target for 2030, that builds also on the contribution of our suppliers. Therefore, the focus is on suppliers and the purchasing function to make a significant contribution to achieving the sustainability goals.Prof. Dr. Ing. Florian Schupp, SVP Purchasing & SM Automotive at Schaeffler.Insights for suppliers after the eye-opening keynote: With regard to sustainability in supply chains, there are many new aspects to consider in the future. Communication between customer and supplier will be intensified - and also this exchange between Schaeffler and its business partners will take place via SupplyOn. Corporate Carbon Footprint Readiness SurveyVeronika from Continental Automotive Purchasing took over next. In the first step, she illustrated Continental's CO2 targets and strategies. Together with Wolfgang, Director Consulting North America, from SupplyOn, she presented a joint project between Bosch, Continental, Schaeffler and Vitesco: The Corporate Carbon Footprint Readiness Survey via SupplyOn.The jointly developed questionnaire is designed to provide customers with insights into their suppliers' CO2 data.Our goal is to create 100 % carbon neutrality along our entire value chain. As a first step, we will request our suppliers to switch to 100 % renewable energy by 2030. In addition, the availability of reliable carbon footprint information on both on company as well as on product level will become essential in the future.Veronika Leutgäb, Sustainability Management at Continental Automotive Purchasing A SupplyOn PCF tool for suppliersBut we didn't just have information on corporate carbon footprint for the audience. Korbinian, Vice President Portfolio Strategy and Marketing, gave exclusive insights into the development of a new SupplyOn solution for product carbon footprints. This will help suppliers to manage and share requested data with their customers. Michael, the lead Product Owner shared specific use cases of the planned solution and encouraged attendees to participate in testing and designing it. Top 5 SupplyOn features for suppliers in 2022Saving the best for last, our trainer Regina demonstrated the top five supplier features in 2022 on the platform, click by click:Dashboard / Navigation DrawerE-Mail NotificationOrder Line Items OverviewFormat DescriptionsCertificate Management We hope that suppliers were once again able to take away valuable information - on both SupplyOn solutions and on the subject of CO2 — and we are already looking forward to the next Supplier Community Events! * ESG: Environment, Social, Governance
Lena Zuber · March 6, 2024 - reading time < 4 Min.
Supplier Community Event: relevant CO2 information for suppliers — for the first time live from the studio
Industry News

Sustainability Kongress 2022: solving the challenge of sustainable business operations

The Sustainability Kongress, organized by the Berlin Institute of Supply Chain Management, was a high-profile event, with keynotes by the former Minister of Foreign Affairs of Germany and Parliamentary State Secretary in the Ministry for Economic Affairs and Climate Action. Alongside Joschka Fischer and Michael Kellner, various corporate executives and purchasing managers presented their views on sustainability in a world in transition, where time to act is running out. Among the speakers were Schaeffler CEO Klaus Rosenfeld, Deutsche Bahn CEO Dr. Richard Lutz, Airbus Executive Nicole Dreyer-Langlet and BASF Executive Saori Dubourg.Sustainable management is in demandThe key topic of the congress were sustainable business practices. Particularly, it was about the need for embedding sustainability in the corporate strategy as well as a basic attitude for the entire organization. A clear, transparent and measurable sustainability reporting system was called for.Two aspects in particular were discussed for reducing the carbon footprint. One key factor was the impact of the inbound supply chain (i.e. upstream supply chain = "Scope 3") on CO2 emissions. The second central topic was product development aligned to sustainability principles. This considers CO2 emissions both during product use and at the end of the product life cycle, catchword: circular economy.In addition, other important ESG topics, such as diversity and the need for political guidelines for sustainable business, were also discussed intensively.Award-winning sustainabilityIn three categories, the jury of the Sustainability Kongress honored the most innovative concepts, initiatives and companies among all applicants.Sustainability AwardCategory ProcurementWinner: Deutsche BahnFinalists: EnBW, MieleCategory OperationsWinner: thyssenkrupp Material ServicesFinalists: GEA, SiemensCategory R&DWinner: TE ConnectivityFinalists: Knorr-Bremse, BlueMovement BSHBuilding Public Trust AwardCategory Non-Listed CompaniesWinner: Robert BoschSupplyOn sincerely congratulates all winners and finalists, including SupplyOn customers BMW, Bosch, Deutsche Bahn and Siemens.Sustainability at SupplyOnAs the standard for supplier collaboration, SupplyOn supports its customers and their suppliers in achieving their sustainability goals. This applies in particular to Greenhouse Gas (GHG) Scope 3 topics, ranging from surveys on the Company Carbon Footprint (CCF) and the Product Carbon Footprint (PCF) to solution modules with regard to the Supply Chain Corporate Due Dilligence Act (Lieferkettensorgfaltspflichtengesetz, LkSG).
Sustainability Kongress 2022: solving the challenge of sustainable business operations
Use Cases

Bosch Thermotechnology China improves its inventory management capability with SupplyOn

Bosch Thermotechnology provides all activities involving heating technology and hot-water solutions. Bosch Thermotechnology has a number of major international and regional thermotechnology brands and supplies people with state-of-the-art technologies worldwide. In times of scarce energy resources, the topic of efficient heat generation is of existential importance. Innovations from Bosch Thermotechnology have been setting trends for centuries.As a buyer company, Bosch Thermotechnology is constantly exploring the efficient digital collaboration, in order to realize the fastest delivery speed, lower logistics cost and higher product quality throughout the whole supply chain.Vendor Managed Inventory (VMI) is a management strategy that aims to obtain the lowest cost for both the buyer and the suppliers, by setting the maximum/minimum inventory level in a mutual agreement to let suppliers manage the inventory. SupplyOn's VMI provides Bosch Thermotechnology in China with a mature system to address these challenges. With the completion of the project in August 2022, an important milestone has been reached that represents a major leap ahead for Bosch's information management.End-to-end VMI managementBefore the SupplyOn VMI project was launched, Bosch Thermotechnology and its suppliers in China faced some problems, such as missing or delayed information at logistics control points, or supplier performance monitor difficulties. The VMI solution provided by SupplyOn helps Bosch Thermotechnology China to recognize the existing and potential business pain points, and then offers reasonable actions.End-to-end Management: SupplyOn VMI receives master data and business data from the ERP. Suppliers creates planned receipts and ASN on the SupplyOn platform, and send the delivery information back to the ERP.Inventory Monitor: According to the daily inventory, demand and planned receipt, VMI automatically calculates the projected inventory. Once the actual or projected inventory exceeds the maximum or minimum inventory level, the system will send an early alert to both Bosch and the supplier to notify the supplier of timely replenishment and explain the reason to Bosch.Alert management: Apart from inventory alerts, the VMI system also provides ASN alerts. When the actual delivery quantity and arrival time are inconsistent with the ASN's planned quantity and time, the system will also automatically send the alert email to notify Bosch and its suppliers to find and solve the problem in time.Replenishment Method: Both Inventory Projection (IPR) and Replenishment Planning Monitor (RPM) are supported. For the IPR process Bosch sends an inventory report and gross demand messages. Based on this information the projected inventory is calculated and displayed over time. For the RPM process Bosch sends inventory report messages and the suppliers create the ASNs based on today's inventory and agreed Min/Max inventory level.Supplier Performance Monitor: Development of a performance assessment form exclusively for Bosch, with which users can analyze the VMI consignment supplier lifecycle based on suppliers, time range, product categories and other dimensions.Key factors of project successThe right suppliers and materials are critical elements for the success of a VMI project.The suitable suppliers:Supply Chain Management Capabilities: For suppliers who have little production capacity or poor production plan execution ability, even if the SupplyOn VMI automatically calculates the replenishment quantity and delivery time, suppliers still cannot follow the process.Long-term partnership: Consignment suppliers typically have a close relationship with Bosch. When consignment suppliers implement the VMI system, they will be responsible for the inventory management and ownership. So Bosch has the obligation and confidence to provide the consignment suppliers with core business data such as demand and inventory.The suitable materials:Relatively stable demand: when buyer's demand fluctuates greatly, the bullwhip effect is then produced, which will cause great pressure on the supplier's replenishment plan.High demand frequency: For products with low demand frequency, using Excel to manage supplier replenishment has the higher input-output ratio than using VMI.The benefitsEnd-to-end transparency of supplier inventory managementReduced transportation costsEarly warning of inventory riskCost savings through lower inventory levelsCustomer reviewThe SupplyOn VMI solution is an intuitive supply chain platform based on a global business network. This provides maximum support for Bosch Thermotechnology and its suppliers in a more efficient digital collaboration.At the same time, we also want to thank the SupplyOn project team. During the implementation of the project, both teams communicated and collaborated closely, overcame the impact of the pandemic and the difficulties of the project. The entire team worked in a very professional and dedicated manner.— WANG Yukun, Project Manager, Bosch Thermotechnology China
Rupeng Hong · October 6, 2022 - reading time < 4 Min.
Bosch Thermotechnology China improves its inventory management capability with SupplyOn
SCM Insights · Technology

Advanced analytics: from data-driven to outcome-driven analytics

 The obsession to know the futureHuman beings have been and always will be obsessed with knowing the future with the wonder that if they know what will happen they can make better decisions and achieve better results.In business, the obsession is the same. In the last 15 years of my working experience, I have seen, participated in, and delivered work on contributing to forecast modeling and analytics. What I learned is that as soon as the prediction is out, it is by definition not the truth nor the reality of the future, but rather an estimation of what will or might happen. Whatever the method, a prediction is just a prediction, that’s it. In best cases, it becomes a support for decision-making but it should not be the only criteria to make decisions. (more…)
Advanced analytics: from data-driven to outcome-driven analytics
Inside

Job responsibility and part-time work: is both feasible at the same time?

Different phases of life come with different needs. In order to facilitate work, family and private life, we offer our employees various part-time options — from classic part-time, usually starting at 20 hours, to temporary interim part-time. Consequently, we offer many of our job opportunities also on a part-time basis.Ferdinand joined SupplyOn in the summer of 2019. After an extended corporate career, he switched to us as Product Manager Invoicing, a completely new field for him. (more…)
Job responsibility and part-time work: is both feasible at the same time?