Complexity Management with the K-Method: Price Structures, IT and Controlling for Procurement of Packaging Materials PDF
Preview Complexity Management with the K-Method: Price Structures, IT and Controlling for Procurement of Packaging Materials
Daniel Kossmann · Donald Kossmann Complexity Management with the K-Method Price Structures, IT and Controlling for Procurement of Packaging Materials Complexity Management with the K-Method ThiSisaFMBlankPage Daniel Kossmann (cid:129) Donald Kossmann Complexity Management with the K-Method Price Structures, IT and Controlling for Procurement of Packaging Materials DanielKossmann DonaldKossmann i-TV-TAG Research K€oln,Germany Microsoft Kirkland,Washington USA Translated from the German by the authors. Title of the original German Edition: Komplexitätsmanagement mitderK-Methode.(c) Springer-Verlag Berlin Heidelberg2015 ISBN978-3-662-48243-8 ISBN978-3-662-48244-5 (eBook) DOI10.1007/978-3-662-48244-5 LibraryofCongressControlNumber:2015952310 SpringerHeidelbergNewYorkDordrechtLondon #Springer-VerlagBerlinHeidelberg2016 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilarmethodologynowknownorhereafterdeveloped. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthis book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained hereinorforanyerrorsoromissionsthatmayhavebeenmade. Printedonacid-freepaper Springer-Verlag GmbH Berlin Heidelberg is part of Springer Science+Business Media (www.springer.com) Startwhereyouare. Usewhatyouhave. Dowhatyoucan. ArthurAshe ThiSisaFMBlankPage Preface Packaging materials are increasingly causing problems, especially in the Fast MovingConsumerGoodsindustry(FMCG).Thisisbecausethevarietyofversions (complexity) caused by country and flavour versions has increased as well as the number of versions required for promotions and specific packaging for trade partners.Thiscomplexityisanincreasingproblemforthesupplychain,especially forstrategicprocurementandmaterialplanning. Measuressuchastheintroductionofmultilinguallabelsortheharmonisationof brands across countries have limited the explosion of variants but have not addressed the root cause. With the K-Method which we describe in this book, we wanttointroduceanentirelynewwaytomanagethesituationinsuchawaythatthe complexity is no longer perceived as such a problem. The K-Method does not challenge the number of variants of a purchasing category but shows an efficient method to handle the complexity of so many different materials. The benefits are evidentwhenitcomestonegotiatingpriceswiththesupplier,makingcall-offsby materialplanners,invoicecontrolandreporting. TheK-Methodisbasedontechnologythathasalreadybeenaroundforawhile. However,itisrarelyappliedinpracticetothedegreeexplainedinthisbook.You may find approaches you will not only be familiar with but perhaps are already usingonadailybasis.WiththeK-Method,weprovidetheincentivetowalkthefull distance.OnlythenwillyoubeabletotakefulladvantageoftheK-Methodwhen handlingyourpackagingmaterialsportfolio. The K-Method was developed in the end of the 1990s by the authors at Unilever and was tested with corrugated outers as a pilot project. Later, the K-Methodwas rolled outas apart ofaconsultingproject at LR Health&Beauty SystemsinAalen,Germany.There,thecategorieslabelsandtubesweremigrated totheK-Method. The authors know that parallel to their own research, other people are also working on similar approaches, e.g., for printed foils. However, this book is the firsttocoverthecompleteapproach. We know that your time budget is tight, so we have tried to be as brief as possible. We are assuming you have a working knowledge of packaging procure- mentandwillnotrepeatinthisbookitsstandardtermsandprocedures. vii viii Preface We understand that introducing the K-Method is not a simple task. But we also know, once the K-Method is introduced and established, there will be no desire by the buyer or the supplier to return to traditional procurement methods. Theinvestmentisdefinitelyworthwhile. We want to further develop the theory of the K-Method and its implementation in practice. We welcome any kind of feedback: corrections, suggestionsonhowthingscouldbebetterexplainedideasforfurtherdevelopment, problems or even rejections in practice. We will also appreciate any kind of feedback on projects where you have successfully introduced the K-Method or even failed to do so. You can contact us under [email protected] and [email protected]. Wehopethisbookwillleadyoutogreatersuccess! K€oln,Germany DanielKossmann Zu¨rich,Switzerland DonaldKossmann Autumn2014 Acknowledgements The authors would like to thank the following persons who have contributed tothebook: Roland Balzer, Michel Eichwald, Thomas Kircher, Beatrix Kossmann, Horst Kossmann, Iwona Kossmann, Judith Kossmann, Alexander Kreutz, Stefan Pr€ols, Marieke Reinders, Uwe G. Schulte, Henk Sijbring, Peter W. Smith, Hans-Peter Schmitz,Hans-DieterWolfandAsmusWolff. ix
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