Chapter4Supply Contracts王长琼
Chapter 4 Supply Contracts 王长琼 1
4.1 IntroductionOutsourcingOEMs outsource complete manufacturing anddesign of their productsPurchasing* Procurement in OEMs becomes very important-- DELL: 74% of total production cost* OEMs have to get into contracts with supplierso Forbothstrategicandnon-strategiccomponentsPeter Kraljic's supply classificationbased on its profit impact and its supply risk2
4.1 Introduction Outsourcing OEMs outsource complete manufacturing and design of their products Purchasing Procurement in OEMs becomes very important - DELL: 74% of total production cost OEMs have to get into contracts with suppliers For both strategic and non-strategic components Peter Kraljic’s supply classification based on its profit impact and its supply risk. 2
HighVolume,Leverage ItemsStrategicItemsValue,LargeVolumePurchases.Unique Specifications orValue-Add·UnitCostImportant·SupplierTechnology Criticalimpacton·SubstitutesAvailable·FewSuppliersAvailableSC"value-·Difficultto SubstituteManyEquivalentSupplierAvailableadd"Non-Critical ItemsBottleneckItems.Commodities·Unique Requirements·Supplier'sTechnology,Knowledge,Assets·EasytoFindSubstituteProductsor Expertise Critical·Many Supplier Available· Scarce Sources of Supply or a Few·LimitedFinancial ImpactSuperior Suppliers·Difficult to SubstituteDifficulttoMonitorand/orMeasureLowPerformance·HiddenActionbySupplierPossibleHighLowSupplyRisk/Complexityproductavailability,numberofsuppliers,ease or cost of switchingsupplier or theavailabilityof substituteproducts or service
4.1 Introduction product availability, number of suppliers, ease or cost of switching supplier or the availability of substitute products or service Volume, Value, impact on SC “valueadd”, . 3
LeverageitemsHighStrategicitems-Exploitpurchasing-Formpartnershipspowerand-Acguirecapabilityminimizecost-Createnewin-house-Investinsupplierstocapabilityensuretimely-NewbusinessunitavailabilityBottleneckitemsNon-critical itemsEnsuresupply-Simplifyand-AcquirecapabilityautomateCreatecapability-Multiple suppliersInvestinsuppliers·Create a"warm base"LowLowHighSupplyRisk/ComplexityDifferent purchasingpolicies
Different purchasing policies 4
4.2 Supply contracts forstrategic componentsSupply Contract can include the following* Pricing and volume discounts.* Minimum and maximum purchase quantities* Delivery lead times* Product or material quality* Product return policies制造商希望下游多订货，但是，会增大下游销售商卖不出去的风险。供应合同就是为了解决这个问题：减少下游客户的风险
4.2 Supply contracts for strategic components Supply Contract can include the following: Pricing and volume discounts. Minimum and maximum purchase quantities. Delivery lead times. Product or material quality. Product return policies. 制造商希望下游多订货，但是，会增大下游销售商卖不出去的风险。 供应合同就是为了解决这个问题：减少下游客户的风险 5