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Purchasing : Mercedes Benz

About 1994  Mercedes introduced the TANDEM supplier management program. In regular and frequent supplier "Forums", Mercedes updates its suppliers on the actual policy.

The 6 elements of the supplier management process describe the ideal approach.

Purchasing Strategy Mercedes Benz

  • Technology & Innovations Marketing

Within the purchasing process one of the first tasks is to monitor and detect the innovation´s potential within the market and at the suppliers. A standardized procedure is introduced in order to manage innovation projects with suppliers.

  • Procurement Marketing

Other call it forward sourcing and it is the task of potential supplier identification and evaluation. Constantly updated supplier markez reports support the pre-selection.

  • Order Strategy

Within the given project decissions must be made about the number of suppliers, which should be involved, the degree of global sourcing and others. This modul of the supplier management system of Mercedes Benz describes the decission process to define the strategy to be followed for order placement.

  • Order Process

During the order processing checklists are made available for various purposes, like the biding process and order evaluation. Standardized documents are prepared for the bidding and evaluation process. Important part of this element is target costing in order to evaluate an approbriate price range.

  • Supplier Support

Mercedes Benz will support suppliers in getting more efficient, which is one of the central ideas of the Picos Approach, Lopez developed at General Motors.

  • Modifications Management

The main source for follow-up price negotiations were modifications. Without them, many of the suppliers would have gone bankrupt, becaus first made prices were often much to low. With this new element within its supplier management strategy Mercedes Benz will keep track of modifications, communicate them to the suppliers and will evaluate the consequences concerning suppliers costs.

The new process was first applied with the A-class and extended to the new S-class.

 


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