Collaboration and Innovation Tallin Olaf Holzgrefe Head of International BME e.v.
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1 Collaboration and Innovation Tallin 2013 Olaf Holzgrefe Head of International BME e.v. 1
2 The BME - Association Materials Management, Purchasing and Logistics - Germany Influencing Governments Processes and Challenges Innovation 2
3 The BME - Association Materials Management, Purchasing and Logistics - Germany Influencing Governments Processes and Challenges Innovation 3
4 The BME Target Creating Value for Members and Buyers Business & Services People & Publications Qualification & Processes Network & Events 4
5 The BME Target Creating Value for Members and Buyers People & Publications Know-how transfer via own publications, media corporations, guidelines, checklists for buyers, SCM and logistic manager Business & Services Information and services for buyers and companies (Benchmarks, German PMI (EMI), compliance, Value Days, career portal, BME China) Qualification & Processes Management seminars, trainings, education, in-house trainings, e-learnings, process standardisation Network & Events Congresses, fair corporations, 40 expert groups, science groups, young professional, public procurement, governmental network 5
6 The BME in short words BME Basics + 90 employees in Frankfurt BME Association volunteers / 41 regions 5 Business Units BME Akademie (Qualification, Trainings) BMEnet (Services) BME Marketing (Sales) BME China Ltd. (Platform, Qualification) BMÖ Akademie (Qualification, Trainings) BME Akademie BMÖ Akademie (Austria) BME Marketing BME Holding BMEnet BME China 6
7 The BME in short words BME Basics billion Euro purchasing volume 9,000 private- and corporate members; +1,800 companies buyers in BME companies Industry 60% Attendance 21% Public Sector 7% Trade 6% Transport/Logistics 5% Other 1% 7
8 The BME in short words BME Basics billion Euro purchasing volume 9,000 private- and corporate members; +1,800 companies buyers in BME companies 8
9 The BME Factsheet billion Euro purchasing volume + 9,500 private- and corporate members; buyers in BME companies BME-Sections : Industrial procurement, Public procurement, IT- & Technology provider, Logistics, Young Professionals 40 expert groups of different clusters (+700 members) Innovation network and Best Practice BME-Awards: BME-Innovation, Science, BMWi-BME-Award Innovation schafft Vorsprung BME-Magazin BIP (Pirntrun: ) PMI Germany, BME-Newsletterpool ( adresses) BME Structural network BME Expert network Know-how- und Transfer-Platform BME Events (Congresses, Focus-Forum, Management Seminars, Basic-Seminars, Inhouse-Seminars regional events organized by the BME regions participants per Year BME-Symposium (2.200 participants 2012) e-solution day (1.300 participants 2012) Value-day (Fendt, ZF, Puma, BMW) EPE Zurich participants in qualifications courses (overall) BME Event network BME Corperation network Fair coorporations with integrated presentations and evetns (Hannover Fair, Cologne Fair, Leipzig Fair, Frankfurt Fair, Munich Fair) Interfaces to BMWi, Forreign Office, German Chambers, DIHK, Deutscher Städtetag,Federal Ministries International: IFPSM (Intern. Purchasing Federation), ELA, EMA, EPPG, CEN BII, AHK-Corporations BME press review 2012: Pages 9
10 Highlights: BME-Symposium largest purchasing congress in EU participants Berlin (Safe the date: November 2014) BME Symposium Buyer elösungstage largest eprocurement-congress participants Duesseldorf EPE European Procurement Excellence CPO and CFO event June, Vienna EPE Munich CPOs & CFOs Enter the BME-Network and become a Partner Former German Chancellor H. Schmidt BME Symposium 2011 Networking Use BME as a Marketing platform booth at BME-Symposium Fair, Advertisement in BIP-Magazine or BME-Newsletter 1. CEE Procurement & Supply Forum 16th Oct Budapest in corporation with the German Chambers 10
11 The BME - Association Materials Management, Purchasing and Logistics - Germany Influencing Governments Processes and Challenges Innovation 11
12 From value to influence Expert Groups Publications (BIP) Benchmarks Trainings / Seminars Business Fairs &/ Events Services Large Network Symposium e-solution Day BME regional Groups Expert Groups Qualification & Processes Best Practice Expert Groups Expert Groups Publications (BIP) People & Publications Web-Plattform Benchmarks Trainings / Seminars Knowledge Think Tank Recruitment Network & platform Network Support Events for SME Networkbuilding 12
13 Processes Collaboration and Innovation From value to influence Network & Events Sourounding spheres Stakeholders People & Publications Society Economy Technology Customer (Buyers) Business & Services Strategy Structure Culture Government Managementprocesses Innovation Partners Businessprocesses Optimization Suportingprocesses Competitors Resources Values Qualification & Processes Members / Delegates Interests Public / Media Employees St Gallen Management Model (2004) 13
14 Influencing Government: Ongoing projects with the German Government Official Ministry Delegation Minister Roesler: Portugal, Spain (2012) Turkey (2013) Annual BoKoWiTa German Ambassador Business Day participants German Chancelor State Visit Part of the delegation (Portugal) BME Member of German-Turkish- Corporation Council (+ Romania, Croatia, Bulgaria, Serbia)
15 Influencing Government: Ongoing projects with the German Government Result BME as a competence partner as a popular instigator BME for ist members bulilt bridges to the Government rise the awarenes of the purchasing 15
16 The BME - Association Materials Management, Purchasing and Logistics - Germany Influencing Governments Processes and Challenges Innovation 16
17 Going global or local for local? 17
18 Going global or local for local?
19 Going global or local for local?
20 Going global or local for local? Procurement Markets for German Buyers Source: BME-Member Survey, 11/ Europe (95%) remains most important market, followed by China (77%) 2. Eastern Europe is still in interesting (76%) 3. India becomes stronger 20
21 Sustainability and Compliance Quelle: Transparency International
22 Supplier Relationship Management: Critical Success Factor 1. Over 55 % of the costs are for materials, bought-in goods and services 2. The focus of the supply managers = Balancing the magic triangle: Quality Reliability Price 3. The aim is: to optimize the total costs of ownership (TCO) to have strong and reliable supply chains with stable processes and risks under control 22
23 Global trends Trends in Supplier Relationship Management 1. Innovative suppliers 2. Professional quality assurance 3. Sustainability / compliance 3. Total Cost of Ownership / Intelligent cost engineering 3. Improving visibility and coordination in the supply chain 4. Flexibility, reliability and non-disruptive production The key trend COLLABORATION within the supply chain. 23
24 German insides Strategies 2015 Reduce of risks in the intern. Supply Chain? 24
25 Changing envoirnments Economic Volatility Volatility markets Decreased stock valuation Slow economic growth Increased Globalization Expansion into new markets Standardization: Global process International Supply Chains Focus on Risk Supply chain disruption Financial risk Commodity risk Pressure on Margins Profitability by segments Decreased budgets / sprending Regalutory Changes Increasing requirements Country-specific regulations New Business Models Shared Service Organizations Business Partnerships Big Data for decisions 25
26 Changing envoirnments Inside German Companies - Developments 1. More collaboration between purchasing and R&D 2. Reduce risks in material management flexibility 3. Critical fields: Raw materials 4. Growing exchange rate exposure 26
27 Be competitive Benchmark Services and KPI WHY? Learn from the best Unlock cost-cutting potential Identify current position based on objective comparative data Increase transparency Obtain meaningful data strengthen competitive position Benchmark Products & Services TOP Key Performance Indicators Cost of purchasing Purchasing organization Supplier management Benchmark of Prices of: Energy, Steel, Travel, Logistics, purchasing of indrect materials Trend and forcast of raw materials 27
28 The BME - Association Materials Management, Purchasing and Logistics - Germany Influencing Governments Processes and Challenges Innovation 28
29 BME / BMWi Competence Center Innovative Procurement The Center-Activities and its role: Internet Plattform + Social Media Public procurement is a huge procurement sector not only in Germany Matchmaking Physical Competence Center By purchasing cutting-edge products and new technological solutions, the Competence Center supports the public procurement sector Public Relations Competence Center Events Meetings Seminars Qualification & Trainings Inhouse Trainings Strategic Consulting 29
30 esolution challanges Cloud Mobile Social Big Data 30
31 THANK YOU Olaf Holzgrefe Head of International Business Development & Affairs BME e.v. Phone Mail 31
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