does purchasing need innovation? - bookshop.cips.org · • cloud computing • artificial...

05.12.18

Schweizerische EidgenossenschaftConfédération suisseConfederazione SvizzeraConfederaziun svizra

Swiss Confederation

Innosuisse – Swiss Innovation Agency

Does purchasing need innovation?About the interaction of PSM and Academics Prof. Dr. Herbert RuileWednesday, 5 Decembr 2018, ZH

05.12.18

Evolution is between

2 SWISS LOGISTICS INNOVATION CENTER

Coincidence? Imperative?

?

Design?

05.12.183 SWISS LOGISTICS INNOVATION CENTER

05.12.18

Procurement in the courseof time

Mass production

• Standardisation• Software engineering

becomes scientific discipline• SCM becomes a discipline

Globalization

• Global Competition • Risk management• SCM becomes scientific

discipline

Early stages

• Strong regional growth• International trade ex change• General access to academia

• ERP• Lean Management, JIT,

JIS• VMI

• Advanced Planning• Internet, platform• Track & Trace

• Fax• Edi- Telex, Phone• MRP I

Technology development

Economy/academic Trend

Supplier developmentSupplier integration

Supplier qualificationSupplier portfolio

Managing purchase order &supplier side inventory

Evolution of supplier management

05.12.18

Ongoing Changes affecting the value chain design


Value chain design

E-commerce/ B2B Integration

Industry 4.0 / IoT

“America” 1st

Uni-/multi lateral FTA Individualism

Client controlled Supply Chain

Limited logistics infrastructure

Regularism

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Future:Integrated business ecosystems


intelligent

digital integrated

autonomous

value added

networks

product life cycle

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What it is about?

Think to the end!


Production

TechnologyApplication Value for firm

Automation / Robotic• robots

• Machine learning

• Machine to Machine

• Autonomous vehicles

• Drones

• …

IoT• Digital twin

• Blockchain

• Cyber security

• Virtual/ augmented reality

• Sensor/actor

Data Processing • Process data mining

• Interconnectivity

• Cloud computing

• Artificial Intelligence

• Pattern recognition

Wireless communication• Mobile device/app

• 5G

...

PSM- Demand management

- Spend management

- Market analysis

- Supplier management

Warehouse& distribution- Infrastructure Management

- Inventory management

- Routing management

- Picking, Tracing,…

SCM- Network management

- SC Integration

- SC Planning

- flow of goods/value

…

Cost reduction- direct

- indirect

- opportunity

Performance improvement- availability

- Lead time

- OTD

Innovation- New products

- New services

- New business models

Logistics Services- Agility

- Transparency, Risk

- Compliance

…

Tool

Methodology

Financial

impact

Revenue- New customers

- New products

- New services

Profit- Net margin

- ROI/ ROCE

- NPV

Liquidity- Cash cycle

- debt ratio

…

Decision making• scenario

• multi criteria

• process

• negotiating

Analytics• Visualization

• Interpreting

• Sensitivity

• Recommending

• scoring

Design Tool• Process Design

• Business model design

• Network

• Design patterns /

principles

Optimizing Tool• OR

• Simulation

…

05.12.18

Building the bridge from research to industry!

SWISS LOGISTICS INNOVATION CENTER

Improved Value Chain Design

Tools for value chain design

Applied research & development

Technology (e.g. Big Data, Semantik, Robotik, AI,

Cloud, Simulation, Block Chain)

Efficient and effectiveKnowledge & Technology Transfer

„Value Chain design is strategic lever of a competitive economy and sustainable society“

Technology driven solutions for value chain design, operation and optimization

Technology-development, basic research

05.12.18

Digital PSM!


THE FUTURE OF PSM 4.0

object of digitalization enabler of new innovative digital business models

Processes digital Business ModelProducts, Services, Tools

user of digitalization

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The changing environment requires adaptation

10

With increasing competitive pressure, advances in technology and changing customer needs, the learning organization is becoming more important

than ever. (Garvin, Edmondson, Gino, 2008, HBR)

Changes in the environmentInternet of ThingsIndividualization

FTA, …

Changes in the organizationtransformation

adaptionlearning

05.12.1811

Future value creation networks are complex adaptive systems.

Previous, traditional management approaches are

not suitable for this.

05.12.18

improve your organization forexcellence with intensive KTT


Value Chain Management

Group A Group B n

Value Chain Management

Group A Group B n

Development

Strategie, Services Prozess, IT, ...

traditional type:operational Focus

excellence type:Shared KTT

e.g. DHL, UPS, K&N, Dachser, Aldi, Lidl, IKEA, Post, SBB cargo Cargologic,

Knowledge &

Technology Transfer

(KTT)

05.12.18

Maturity level of PSM


Innovate

Invest

Ignore

Being ahead; creating competitive advantages by R&D

Closing up; create competitiveness by copy & paste

Lagging behind; loosing competitiveness,

Amateur

Skilled

Expert

05.12.18

Perspectives of Academic –Industry interaction


Add

ed V

alue

of I

nter

actio

n

Hire graduates

Early involvement of studentsCollaborate in studies

Collaborate in R&D projects

Collaborate in customized Innovation programs

Collaborate in customized project

LEARNING

INNOVATION

Postgraduate programs

Level of Interaction

05.12.18

An integrated Innovation Systemis funded by the government

15

Hig

her e

duca

tion

Appl

ied

rese

arch

&

deve

lopm

ent

Inno

vatio

nin

valu

e ch

ain

desi

gn

Sust

aina

bilit

y,

Com

petit

iven

ess

• Increase profit• Improve efficiency• More flexibility• Less cost• Less environmental impact• better working conditions

ResultEnbabling

The innovation process opens up new potentials for economy and society.

Transfer

Higher education is essential for systematic Innovation!

05.12.18

The VNL …

is the first and only thematic network to promote innovation in value chain design and management (INNOSUISSE)

networks science and industry in order to carry out joint innovation projects

committed to sustainable value chain design and management from the idea to the market.


05.12.18

The offer of VNL


05.12.18

With stage and gate to success:


thinkable desireable feasible realizable practicable

The solutions are:

development1

ImplementationFeasibilityIdeas10-20 4-5 2-3

MS

1

MS

2

MS

3

MS

4

MS

5

Network

max. 50% of project cost funded by INNOSUISSE

supported by VNL/Logistics Innovation Center

CIP

Analytics

int. R&DPilotPrototypeStudy/

researchThink tank

05.12.18

• More sales

• New customers

• better quality, service, cost

• sustainability, compliance

Offers:• R&D knowhow• R&D infrastructure• Technology knowhow

Offers:• Entrepreneurial

knowhow• Market proximity• Praxis relevance

Your benefit!


Swiss LogisticsFaculty

(20 Universities)

Funded Projects15-20 / year

by ca. 300 TCHF

Innovation Initiative:

100 Mio. CHF

INDUSTRY

R&D-PARTNER

INDUSTRY:- resources- 10% cash

R&D PARTNER:- Resources- knowledge

INNOSUISSE- max 50% of project

cost to R&D

PROJECTS FIRM IMPACT

INNOSUISSE

SOCIENTY IMPACT

FUNDING

• Sustainable ecosystem

• Competitive economic system

• employment

• Growth of GDP

1 Bill. CHF

IMPACT

05.12.18

12

3

4

5

6

7

How it works!

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Problem Idea

Solution Implementation

Project Constitution

05.12.18

Example 1KTI Project 18779.2 PFES-ES: Selection and use of supplier management instruments in international procurement in line with the situation


Efficiency gap

Effectiveness gap

Fit

Fit

Case: Complexity of situation

Solu

tion:

Su

pplie

r Man

agem

ent

inst

rum

ents

Zone of strategic fit

05.12.18

Example 2• PSM 4.0 working group


Technologygroup

Peer groupPSM

Pilot / living case

PSM 4.0 implementation pilots:• Seizing potentials of IoT• Pilot Design

• Pilot Implementation

Technology Management:• State of the Art for IoT Technologies• Evaluating Technology

• Knowing further application

Identify and master challenges and opportunities during implementation

05.12.18

2 new proposals


In times of constant change, increasing complexity and dynamics (“Dynaxity”), we

see that many companies fail due to inertness and a lack of adaptiveness.

Organizational ecology presents evidence suggesting that most organizations are

largely inert and ultimately fail.

DYNAMIC CAPABILITIES

The ability of a firm to reconfigure assets and existing capabilities, explains long-term

competitive advantage

AMBIDEXTERITY

The ability of a firm to simultaneously explore and exploit, enables a firm to adapt over time.

SenseCapability

SeizeCapability

ReconfigureCapability

ExploitBe efficient today

ExploreBe flexible in the future

Managing Dynaxity

The Internet of Things (IoT) is increasing the need to look beyond the

enterprise’s four walls to keep pace with fast-changing markets.

In this ever-changing environment, the extended supply ecosystem can be far

more dynamic than in traditional markets.

Quick Response Supply Ecosystem

Manage Supplier Manage Supply Ecosystem

Social network

Social media technologycommodities Bi-lateral SRM

05.12.18

Schweizerische EidgenossenschaftConfédération suisseConfederazione SvizzeraConfederaziun svizra

Swiss Confederation

Innosuisse – Swiss Innovation Agency

Danke für Ihre Aufmerksamkeit.www.vnl.ch

05.12.18

I'm getting the practice explained to me by theorists.

Stufe Beschreibung Beispiel Nutzen Anteil* pro Jahr

1 passiv Anstellung von BA/Ma AbsolventenUnternehmen mit komplexen logistischen Aufgaben

Geprüftes Fach- und Methodenwissen in Logistik

< 0.3 %

2 LernenFrühe Einbindung von Studenten: Praktikum, Werkstudent, Studentenprojekt, Ba-Arbeiten

Kurzfristige Aufgaben mit komplexerer Analyse, einfache Lösungen in Logistik

Betreutes Lernen mit den Studierenden

< 1.0 %

3Wissen/

Verstehen

Wir beteiligen uns an der Ausarbeitung von Marktstudie und Fallstudien, Benchmarks, Ma/ PhD Arbeiten

Systematische Analyse mit vertieftem Wissenszuwachs in Logistik und SCM

Marktwissen, Best Practice, Best in class

< 0.5%

4 Anwendung FE-Projekten und ProduktentwicklungVertiefte Analyse und konkrete Entwicklung von marktfähigen Produkten für Logistik und SCM

Innovative Produkte und Lösungen, Patente

< 0.4 %

5 Zukunftmittel-und langfristig Investitionen in Forschungsstellen und -programmen

Erforschung von Basistechnologien, Grundlagen und Zukunftsthemen von Logistik und SCM

Machbarkeit und Nutzen von Zukunftsthemen

< 0.1%

25

Ausbildung Forschung

*) Von ca. 5500 Unternehmen, die mehr als 50 Mitarbeitende haben (geschätzt)

05.12.18

Qualification program forPSM 4.0


Strategy

Tech

nolo

gyTechnology Scouting &

Monitoring / push Innovation

9

Industry 4.0 and future of purchasing

– introduction –

1Thinking in (digital) Business Models

2

PurchasingBusiness Intelligence

(Master Data Management &

Big Data Analytics)

8

Digital Process

Management

5

Value Chain Design (design of E2E value

creating architectures)

3

New Ways of Networking

(Processe & Tools of networking)

6

Management of Cooperation und

Networks(strategic partner

management)

4

Supply Risk Management

(Processes & Tools)

7

Sustainability & circular Economy

10

does purchasing need innovation? - bookshop.cips.org · • cloud computing • artificial...

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