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Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 1 UTIPS.
Megatrends 2022
Prof. Dr. Holger Schiele, Utrecht, 19.06.2012
This report is intended exclusively for employees of the client. Its distribution, quoting of its contents and reproduction – complete or in part
– for the purpose of conveying it to a third party requires the prior written consent of Universiteit Twente. The text and graphics summarised here have been used in the course of a presentation; they do not represent a full documentation of the
event.
Input for this presentation: h&z, PIU, Prof. Dr. H. Schiele , Niels Pulles and Klaus Möller.
UTIPS.
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 2 UTIPS.
Developing future scenarios through megatrend analysis
Five megatrends
Acceleration of technological progress
Political and economical instability
Shift of growth centres
Demographic decline
Increasing corporate social responsibility
Implications of the trends
Megatrends 2022
Agenda
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 3 UTIPS.
„Ich glaube an das Pferd. Das Automobil ist
eine vorübergehende Erscheinung“
Kaiser Wilhelm II.
It is difficult to forcast future trends
Recognising trends
“I believe in the horse. The car is a temporary occurrence.”
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 4 UTIPS.
Mega trends are formed of a series of micro trends that build upon one another
Mega trend logic
Time 2011 2020
Dis
trib
utio
n
Mega Trend 1
Mega Trend 2
Micro movements
Mega Trend n
Widely distributed, decade long movements, each consisting of numerous micro movements
Following the mega trend logic we can examine the world around us and identify trends that
might have the potential to become mega trends and influence us for a long time
Only possible scenarios can be developed, no scientifically “proven” trends
Source: Procurement Intelligence Unit, Naisbitt (1982)
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 5 UTIPS.
Expert panels of leading practitioners and academics identified mega trends which
are expected to substantially impact future procurement practices
Challenges in procurement 2020
Source: h&z; to get a copy of the report please refer to www.huz.de
PROCUREMENT 2020
WHITE PAPER
MUNICH – DUSSELDORF – PARIS – VIENNA – ZURICH
www.huz.de
PROCUREMENT 2020
WHITE PAPER
MUNICH – DUSSELDORF – PARIS – VIENNA – ZURICH
www.huz.de
Europe/ Munich
December 16th, 2010
America/ New York
January 20th, 2011
Asia-Pacific/ Shanghai
February 18th, 2011
Firms:
AkzoNobel, Alcoa, Ann Taylor Stores,
BASF, Cofely, Colgate-Palmolive,
Deutsche Post, Hochtief, IBM, Johnson
Controls, Kone, Möller-Maersk,
Schindler, Interpublic Group
Universities:
Arizona State University (USA),
Universität der Bundeswehr München
(D), Cranfield School of Management
(UK), Fudan University Shanghai (PRC),
Rutgers Business School (USA),
Universiteit Twente (NL)
Organised by
h&z consulting (D) and PIU –
Procurement Intelligence Unit (UK)
Participants
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 6 UTIPS.
Study participants expect five trends to coin supply management’s activities in the
next decade
Global mega trends and their effect on procurement
Source: h&z and workshop participants
Corporate Social
Responsibility (CSR) is
expected to be of greater
importance
Changes
in political
& macro-
economic
environ-
ment
Fundamental market
instabilities are expected
more frequent and access
to raw materials might
become more critical
Acceleration
of technological
progress
Innovations (from suppliers)
are expected to become a
key success factor: buyers
need to be preferred
customers of innovative
suppliers
Shift of economic
growth centers
Growth in traditional market is expected to slow down, while
developing (supply) markets are expected to grow
Demo-
graphic
decline
Increase of
environmental
and social
responsi-
bility
Demographic decline is
expected to impact
availability of both skilled
and low cost labor (war for
talent, purchasing job
attractive?)
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 7 UTIPS.
Adding to the “triadic study”, we asked participants of a congress to give a hint on
their firm’s reaction to the megatrends and validated findings through a master
thesis Procedure
Survey at the NEVI Nyenrode congress 2011
Source: UTIPS
Up till now the megatrends had been
identified by an international group of
experts, only
While the amount of experts and their global
spread ensured some reliability, we wanted
to test the importance of the trends with a
large and representative sample of
organisations
During the NEVI Nyenrode 2011 congress a total of 211 purchasers filled in a questionnaire expressing
their perception concerning
the importance of the trends
possible reactions
Next to describing them, data were analysed by comparing responses of the members of the 25% best
performing firms in the sample vs. the least successful quarter
Expanded through
master thesis Klaus
Möller
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 8 UTIPS.
Developing future scenarios through megatrend analysis
Five megatrends
Acceleration of technological progress
Political and economical instability
Shift of growth centres
Demographic decline
Increasing corporate social responsibility
Implications of the trends
Megatrends 2022
Agenda
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 9 UTIPS.
Each mega trend consists of a series of currently observable micro movements,
which have been aggregated
Global megatrends – micro movements
World's bio-capacity
Increasing energy costs and
focus on renewable's
Increase in regulations
Reputation
Changes
in political
& macro-
econo-
mical
environ-
ment
Protectionism
Political instability
Crises and terrorism
Infrastructure bottlenecks
Supply risks
Scarcity of raw materials and
volatility of markets
Acceleration
of technological
progress
Knowledge management,
transparency
"Leapfrogging" of high growth
markets in terms of
innovations
IT, social media etc.
E-business applications
Shift of economic
growth centers
Demo-
graphic
decline
Increase of
environmental
and social
responsi-
bility
Talents; attractiveness
of (western) companies in
emerging countries
Difference in birth rates
Diversity
Aging population: Working
population vs. retired people
Urbanization
Changing and more
demanding consumers
Critical mass moving to high growth markets
Increasing consumer base in new growth centers
Increasing global competition
Localization
Source: h&z and workshop participants
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 10 UTIPS.
The leading firms dedicate significantly more attention to ensure full collaboration by
leading suppliers by trying to become their preferred customer
Applying a preferred customer strategy
Further reading:
Schiele / Veldman / Hüttinger (2011): Supplier Innovativeness and Supplier Pricing: The Role of Preferred Customer Status. Int. J. of Innovation Management, 15 (1), 1-27
Source: participants NEVI Nyenrode Congres 2011 “Trends for Future”, n= 211
Average market performance for lowest 25% = 2.72
Average market performance for highest 25% = 4.14
Lowest 25%
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 11 UTIPS.
The speeding up of technological progress seems to be a real phenomenon, in
particular as also the research productivity per capita is rising
Scientists and publications
469 154
1.423
4.595
2007
total
Japan
Germany
Brasil
Russia
India
China
1.342
265
491 115
810
3.740
2002
1.425
290
USA
Scientists
25 18
38
457
2002
272
76
26 27
36
104
615
2008
226
65
Publications
tho
usa
nd
tho
usa
nd
Source: UNESCO (2010), the per capita productivity of scientists in the above named countries has risen by 9.8%. World: Scientists from 5.8 Mio. to 7.2 Mio.; publications from 733’ to 986’.
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 12 UTIPS.
Amount papers and IPSERA conference contributions
Conference Academic papers on purchasing
The global knowledge base is constantly growing
Example purchasing know-how
Source: Kamann (2011)
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 13 UTIPS.
The share of firms steadily implementing updated knowledge seems to be
stagnating
Utilisation of purchasing know-how
Source: Kamann (2011)
Implementation of know-how with large firms
Po
rcen
tage
As per 1981 Knowledge of the year
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 14 UTIPS.
Including suppliers in the process of innovation is expected to be a key challenge
Innovation
Source: Roberts (2001), Chesbrough (2006), BEST-Innovationsstudie
% firms relying on
external technology
sources ( 16% p.a.)
R&D expenditures
outside home ( 4,4%
p.a.)
Discussion
point
The speeding up of technical progress (due to?) open innovation makes it imperative for
firms to become preferred customer of the leading suppliers in their industry. Purchasing
has to become a motor of innovation
Not the
globalisation of
knowledge
production, but its
move out of the
laboratory of a
single firm were
the main changes
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 15 UTIPS.
Developing future scenarios through megatrend analysis
Five megatrends
Acceleration of technological progress
Political and economical instability
Shift of growth centres
Demographic decline
Increasing corporate social responsibility
Implications of the trends
Megatrends 2022
Agenda
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 16 UTIPS.
Each mega trend consists of a series of currently observable micro movements,
which have been aggregated
Global megatrends – micro movements
World's bio-capacity
Increasing energy costs and
focus on renewable's
Increase in regulations
Reputation
Changes
in political
& macro-
econo-
mical
environ-
ment
Protectionism
Political instability
Crises and terrorism
Infrastructure bottlenecks
Supply risks
Scarcity of raw materials and
volatility of markets
Acceleration
of technological
progress
Knowledge management,
transparency
"Leapfrogging" of high growth
markets in terms of
innovations
IT, social media etc.
E-business applications
Shift of economic
growth centers
Demo-
graphic
decline
Increase of
environmental
and social
responsi-
bility
Talents; attractiveness
of (western) companies in
emerging countries
Difference in birth rates
Diversity
Aging population: Working
population vs. retired people
Urbanization
Changing and more
demanding consumers
Critical mass moving to high growth markets
Increasing consumer base in new growth centers
Increasing global competition
Localization
Source: h&z and workshop participants
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 17 UTIPS.
In order to handle growing macroeconomic instability many firms have intensified
their risk management
Extensive risk-management practices
Source: participants NEVI Nyenrode Congres 2011 “Trends for Future”, n= 211
Average market performance for lowest 25% = 2.72
Average market performance for highest 25% = 4.14
Result of survey (Scale from 1= low to 5 = high)
2,82
3,37
Lower 25%
Top 25%
As a reaction to growing instability risk management systems have been implemented. This practice
does not seem to be temporary, but is expected to be an enduring tool for procurement practitioners
Further ways how to react to changes in the macro economical environment next to the installation of a
cross-functional, anticipatory risk management with KPI and contingency plans would be to closely
monitor and support political processes proactively
Source: Universiteit Twente
Further reading: Schiele / Hoffmann (2010): Testing an integrated risk management system, Paper presented at the Academy of Management Meeting, Montreal 2010 (best
paper nomination)
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 18 UTIPS.
Above average return resources
Political instability can be interpreted as a logical consequence out of resource
scarcity
Link resource scarcity – political instability
10%
20%
5%
0%
„normal“
investment
Total return
Risk neutral standard return
Locational rent
Total return raw
material
investment
Raw materials
15%
Distribution fights about the distribution of the
locational rent associated with mines can lead to
political instability
Trade raw material derivates
100
200
2003 2008
Speculation in raw materials fosters price volatility
Bill
ion
€
Source: European Commission (2011)
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 19 UTIPS.
In order to produce the same output continuously less raw materials are needed
Resource intensity
Decreasing resource intensity in time
Discussion
point
Due to decreasing resource intensity as a consequence from technological progress the
current resource scarcity is no more than a temporary phenomenon
Source: Arbeitsgemeinschaft Energiebilanzen, Statistisches Bundesamt,
IdW (2011)
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 20 UTIPS.
Developing future scenarios through megatrend analysis
Five megatrends
Acceleration of technological progress
Political and economical instability
Shift of growth centres
Demographic decline
Increasing corporate social responsibility
Implications of the trends
Megatrends 2022
Agenda
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 21 UTIPS.
Each mega trend consists of a series of currently observable micro movements,
which have been aggregated
Global megatrends – micro movements
World's bio-capacity
Increasing energy costs and
focus on renewable's
Increase in regulations
Reputation
Changes
in political
& macro-
econo-
mical
environ-
ment
Protectionism
Political instability
Crises and terrorism
Infrastructure bottlenecks
Supply risks
Scarcity of raw materials and
volatility of markets
Acceleration
of technological
progress
Knowledge management,
transparency
"Leapfrogging" of high growth
markets in terms of
innovations
IT, social media etc.
E-business applications
Shift of economic
growth centers
Demo-
graphic
decline
Increase of
environmental
and social
responsi-
bility
Talents; attractiveness
of (western) companies in
emerging countries
Difference in birth rates
Diversity
Aging population: Working
population vs. retired people
Urbanization
Changing and more
demanding consumers
Critical mass moving to high growth markets
Increasing consumer base in new growth centers
Increasing global competition
Localization
Source: h&z and workshop participants
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 22 UTIPS.
Generally, local sourcing offices are not used so often
Local sourcing offices
Source: participants NEVI Nyenrode Congres 2011 “Trends for Future”, n= 211
Average market performance for lowest 25% = 2.72
Average market performance for highest 25% = 4.14
Result of survey (Scale from 1= low to 5 = high)
2,35
2,84
Lower 25%
Top 25%
Neither by top firms nor by less successful firms local sourcing offices in emerging (procurement)
markets are used very often
During the NEVI conference, the associated trend “shift of growth centres” has also been discussed
controversial, in particular in relation to the sourcing potential of newly industrialised countries (for
instance IKEA again sourcing increasingly in Europe due to a low labour content in their products)
Other possible reactions to the trend of a shift of economic growth centres could be the installation of a
dispersed organisation with local expertise in the emerging markets, offshoring and outsourcing, but
also closely observing if for instance Chinese suppliers could not become global competitors
Further reading: Steinle / Schiele (2008): Limits to global sourcing? Journal of Purchasing and Supply Management, 14 (1), 3-12
Schiele / Horn / Vos (2011): Estimating cost saving potential from international sourcing and other sourcing levers. Int. J. of Physical Distribution and Log. Management, 41(3), 315-336
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 23 UTIPS.
Not all “developing countries” are catching up. Brazil, for instance, has lost ground
relative to Germany or Japan
GDP per head
Gross domestic product per head (USD)
1980 2009 Change (%)
USA 12,153 45,674 276 %
Japan 8,387 32,018 282 %
Germany 9,778 36,332 272 %
Brasil 3,741 10,453 179 %
Rusia - 19,023 -
India 416 3,039 631 %
China 251 6,786 2603 %
Source: OECD (2011)
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 24 UTIPS.
The loss of importance of the USA and Japan in manufacturing has NOT bee the
faith of Europe, too
“Old Europe?”
Production output 2000-2007 in Billions (USD)
2000 2001 2002 2003 2004 2005 2006 2007
China 0,48 0,53 0,57 0,66 0,79 0,94 1,15 1,41
Europe 1,90 1,88 2,00 2,37 2,76 2,93 3,18 3,70
India 0,09 0,09 0,10 0,11 0,13 0,15 0,17 0,22
Japan 1,17 0,98 0,92 1,00 1,10 1,07 1,04 1,04
USA 1,85 1,78 1,79 1,85 1,98 2,14 2,24 2,46
Source: Suresh (2009), World Bank Data
Production-output of selected regions
Discussion
point
The thesis of de-industrialisation promoted by anglo-saxon literature is not true for
Europe, some parts of which establish as production centre
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 25 UTIPS.
Developing future scenarios through megatrend analysis
Five megatrends
Acceleration of technological progress
Political and economical instability
Shift of growth centres
Demographic decline
Increasing corporate social responsibility
Implications of the trends
Megatrends 2022
Agenda
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 26 UTIPS.
Each mega trend consists of a series of currently observable micro movements,
which have been aggregated
Global megatrends – micro movements
World's bio-capacity
Increasing energy costs and
focus on renewable's
Increase in regulations
Reputation
Changes
in political
& macro-
econo-
mical
environ-
ment
Protectionism
Political instability
Crises and terrorism
Infrastructure bottlenecks
Supply risks
Scarcity of raw materials and
volatility of markets
Acceleration
of technological
progress
Knowledge management,
transparency
"Leapfrogging" of high growth
markets in terms of
innovations
IT, social media etc.
E-business applications
Shift of economic
growth centers
Demo-
graphic
decline
Increase of
environmental
and social
responsi-
bility
Talents; attractiveness
of (western) companies in
emerging countries
Difference in birth rates
Diversity
Aging population: Working
population vs. retired people
Urbanization
Changing and more
demanding consumers
Critical mass moving to high growth markets
Increasing consumer base in new growth centers
Increasing global competition
Localization
Source: h&z and workshop participants
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 27 UTIPS.
Internal marketing in the firm in order to improve the purchasing function’s
attractiveness among the labour pool
Internal marketing to increase visibility of Procurement
Source: participants NEVI Nyenrode Congres 2011 “Trends for Future”, n= 211
Average market performance for lowest 25% = 2.72
Average market performance for highest 25% = 4.14
Result of survey (Scale from 1= low to 5 = high)
3,09
3,68Top 25%
Lower 25%
One possible reaction to the war for talent could be to increase the internal efforts, collaborating with
the HR department in order to make the purchasing function more attractive
Due to increasing complexity of the procurement role, its visibility is increased. Other reactions to the
demographic decline and a consequent shortage of labour could be the establishment of retention
strategies for high potentials (e.g. supporting DBA programmes), job rotation and definition of clear
career paths
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 28 UTIPS.
The birth rate is not declining in central Europe, only
Demographic decline – example Iran and Turkey
Source: Courbage / Todd (2008)
As comparison:
fertality rate NL: 1,8
fert
alit
y r
ate
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 29 UTIPS.
Fertility decline is a global phenomenon triggered by the alphabetisation of women
Demographic decline – example Arabic countries
Source: Courbage / Todd (2008), Alphabetisierung: > 50% kann lesen und
schreiben
The role of alphabetisation
The correlation coefficient between
alphabetisation of men and start of
reduction in birth numbers is 0.84;
concerning women the value is 0.8
About 20-30 years after women passing
a minimum threshold of alphabetisation
birth decline begins
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 30 UTIPS.
Around 2050 the global age structure will be similar to Japan
today: less talents, less consumers?
Vicious circle population decline – example Japan
Shrinking population and ecomomy Increase taxes and debts
Source: Weltwoche (3/2011), Bloom et al. (2010)
Discussion
point
Hypothesis: The “war for talent” is a temporary phenomenon, since demographic decline
induces economic decline
Counter argument: higher consumer expenses with high age, stronger participation of
women in labour market
Share working
population (world)
2010: 66,3%
2040: 62,1%
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 31 UTIPS.
Developing future scenarios through megatrend analysis
Five megatrends
Acceleration of technological progress
Political and economical instability
Shift of growth centres
Demographic decline
Increasing corporate social responsibility
Implications of the trends
Megatrends 2022
Agenda
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 32 UTIPS.
Each mega trend consists of a series of currently observable micro movements,
which have been aggregated
Global megatrends – micro movements
World's bio-capacity
Increasing energy costs and
focus on renewable's
Increase in regulations
Reputation
Changes
in political
& macro-
econo-
mical
environ-
ment
Protectionism
Political instability
Crises and terrorism
Infrastructure bottlenecks
Supply risks
Scarcity of raw materials and
volatility of markets
Acceleration
of technological
progress
Knowledge management,
transparency
"Leapfrogging" of high growth
markets in terms of
innovations
IT, social media etc.
E-business applications
Shift of economic
growth centers
Demo-
graphic
decline
Increase of
environmental
and social
responsi-
bility
Talents; attractiveness
of (western) companies in
emerging countries
Difference in birth rates
Diversity
Aging population: Working
population vs. retired people
Urbanization
Changing and more
demanding consumers
Critical mass moving to high growth markets
Increasing consumer base in new growth centers
Increasing global competition
Localization
Source: h&z and workshop participants
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 33 UTIPS.
Result of survey (Scale from 1= low to 5 = high)
Top firms have significantly more often included CSR criteria into their supplier
evaluation and development efforts
CSR as part of supplier evaluation and development
Source: participants NEVI Nyenrode Congres 2011 “Trends for Future”, n= 211
Average market performance for lowest 25% = 2.72
Average market performance for highest 25% = 4.14
2,83
3,56
Lower 25%
Top 25%
CSR aspects seem to make their entry into supplier evaluation systems
However, during the conference this trend has also been criticised on the ground of difficulties in
definition
Other practices to promote CSR include the installation of a corporate CSR board with procurement
participation, implementation of CSR performance indicators and a particular emphasis on monitoring
local CSR regulations in case of international companies
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 34 UTIPS.
Europa plays a minor role as originator of potentialy climate critical emissions
Example carbon dioxide
Source: Mongabay (2011), Guardian (2011), ca. 17% CO2 through traffic
CO2 emission (countries)
USA
Germany
Brasil
India
China
Mio
. m
etr
ical to
ns
Dutch participation in
CO2 emissions: ca.
0.2%
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 35 UTIPS.
Up till now CSR has found most repercussion in Western Europe
Organisational maturity CSR
Source: BME / Roland Berger (2010)
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 36 UTIPS.
In particular with „low wage country“ sourcing a discrepancy between CSR
aspiration and reality is visible
Study on social and ecological purchasing
B2C firms showed 30% more maturity as compared to B2B firms
Surveys showed that firms still have problems in understanding and
calculating the economic beneftis of CSR (work conditions, ecological
benefits, energy efficiency, recycling etc.)
42% of the participants did not include CSR in their supplier evaluation
Economic benefits
not fully
acknowledged
Firms with large purchasing volumes in low wage countries revealed the
largest discripancy between sourcing-compliance and industry expectations
LWC Sourcing –
Compliance
Source: h&z business consulting & Universität der Bundeswehr (2011)
Discussion
point
In practice, CSR first means supplier development in Asia and fostering of renewable
energy in China
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 37 UTIPS.
Developing future scenarios through megatrend analysis
Five megatrends
Acceleration of technological progress
Political and economical instability
Shift of growth centres
Demographic decline
Increasing corporate social responsibility
Implications of the trends
Megatrends 2022
Agenda
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 38 UTIPS.
The megatrends are linked to each other. For instance, technical progress seems to
enable environmentally neutral growth
Linking trends
0,4
0,6
0,8
1,0
1,2
1,4
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
CO
2 (
ton
s p
er
he
ad
)
Source: McKitrick et al. (2007)
The trend for sustainability
influences many other trends
Our survey indicated that the
acceleration of technical
progress is seen as the most
important trend, but that all other
trends follow closely
Establishing as preferred
customer of innovative suppliers,
closely monitoring if CSR fully
reaches Asia and implementing
a comprehensive risk
management system could be
agenda points for the next years
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 39 UTIPS.
The main results of our study can be downloaded from the magazine “Supply Chain
Management Automotive”
Further reading
download at www.ipm-scm.com
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 40 UTIPS.
Appendix
Purchasing research and education at the University of Twente
This report is intended exclusively for employees of the client. Its distribution, quoting of its contents and reproduction – complete or in part
– for the purpose of conveying it to a third party requires the prior written consent of Universiteit Twente. The text and graphics summarised here have been used in the course of a presentation; they do not represent a full documentation of the
event.
UTIPS.
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 41 UTIPS.
About 40 students attend the specialisation “Purchasing” at the University of
Twente in the current study year
Specialisation “Purchasing” in Twente
Purchasing in Twente
The new specialisation „Purchasing“ is part of the bachelor „International Business Administration“, which
started in 2011 in English language. Part of the education includes an internship. For this, our students are
available between in June and August
From April 2013 on they will be working on their bachelor assignment, preferrably with a firm
About 40 students chose for this specialisation in 2011/2012
In a total of 4 classes (18 ECTS) the students gain an overview on the purchasing activities along the year-
cycle. By firm visits and guest lectureres they have got a first contact to business
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 42 UTIPS.
Course layout
Background
Supply Management Specialisation
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Based on a solid foundation, students in Twente chose two specialisations which
offer work skills and prepare them for the obligatory internship
Functional specialisations
Specialisation class – basic (Y2Q1)
Specialisation - seminar (Y2Q3-4)
Specialisation class – complementing
(Y2Q2)
Specialistion track
Obligatory classes
Options not chosen by student
Disciplinary toolbox –
introductory class
(Year 1)
Source: IBA committee
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 44 UTIPS.
Why to chose supply management? In modern industrial firms in central Europe
there is one dominant cost block which has not gained prominent attention, so far!
Operations and the cost distribution of a firm
Source: Schiele (2010) - Example of a modern industrial high tech firm in Central Europe in the metal-electro sector
10%
Earr
ings
0,7%
2,5%
4,0%
Overh
eads
Co
st o
f S
ale
s
Fin
an
ce
8,5%
R&
D
1,5% L
og
istics
62,3%
Purchasing
10,5%
Pro
du
ctio
n
other operations
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Supply management was the second most popular choice in the last year
Specialisations
Source: IBA committee
Student‘s choice Acceptance (2011)
Organi-
sation and
Human
Resources
...
Information
technology
Supply
manage-
ment
Corporate
finance
B2B
marketing
0 20 40 60
Organisation / HR
Corporate Finance
IT
Supply Management
B2B Marketing
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Purchasers are responsible for ensuring the supply of materials and services for
their firm: selecting, contracting and managing suppliers on a global basis
Conceptual overview of purchasing classes
supply market
the firm
supply partner
firm demand
purchasing SUM 2 course:
tactic purchasing
SUM 3 course:
strategic purchasing
Source: UTIPS
SUM 1 course:
introduction
SUM 4 seminar:
leading edge topics
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The specialisation supply management covers tactic and strategic purchasing
Three classes in the specialisation, next to the obligatory introductory class in the first year
Tactic supply
management (year
cycle)
Strategic supply
management
(management tasks)
Seminar supply
management
(leading edge)
This course introduces into the ongoing work
of a purchaser
The year cycle of the purchasing
department is discussed (supplier selection,
contracting, performance measurement,
evaluation)
Management tasks are the focus of this
course
Formulating a sourcing strategy, learn how to
implement it and how to monitor its success
Understanding and changing the
organisational structure in which a purchasing
department operates
The last section addresses leading edge
topics in supply management: those which
distinguish good from average firms
Collaboration in the supply chain, innovations
from and with suppliers, green procurement
and global sourcing are the topics
Students prepare a term paper
Source: UTIPS (University of Twente Initiative for Purchasing Studies)
Humboldt: unity of research and teaching
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NEVI: K27
Collaboration in the supply chain, innovation with suppliers, global sourcing, green procurement (current
literature, students prepare term paper)
The curriculum is oriented along the “NEVI 2” topics established by the Dutch
association of purchasers
Content
SUM 2: Tactic supply management SUM 3: Strategic supply management
NEVI : V21, V22, K25
(1) 1_Demand planning Introduction: The purchasing
year cycle
(2) 1_Demand planning: Supply market analysis
(3) 1_Demand planning: Demand planning
(4) 2_Selection: Supplier selection
(5) 2_Selection: Negotiation
(6) 3_Contracting: Designing contracts
(7) 3_Contracting: Contract management
(8) 4_Executing: Operative procurement
Text book: Monczka et al., 2010, papers
NEVI: V21, V29, K25
(1) 5_Evaluation: Supplier evaluation
(2) 6_Controlling: Purchasing controlling
(3) 7_Cost: Cost analysis
(4) 8_Sourcing strategy: Purchasing and corporate
strategy
(5) 8_Sourcing strategy: Sourcing strategy
(6) 9_Organisation: Organising purchasing
(7) 9_Organisation: HR in purchasing
(8) 9_Organisation: Closing: Purchasing maturity
Text book: Monczka et al., 2010, papers
SUM 4: Seminar supply management
Source: UTIPS. NEVI = The Dutch association of purchasers; offers evening courses to prepare purachasers for the job (NEVI I, II and III). The courses in Twente follow the NEVI
guidelines.
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Supply Management Specialisation
Course layout
Background
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University of Twente
The University of Twente is a leading research university in the Netherlands with
the theme “high tech – human touch”
University of Twente
One of the three technical universities of the Netherlands
More than 7000 jobs created in its science park
About 8000 students, out of which 2000 are members of the faculty of management and governance
Since 2011: English language programme “International Business Administration” (started with 100 students, mainly from the Netherlands and Germany, inflow 2012/13: about 300 students)
Theme: “High tech, human touch”
Main strengths: supply management and innovation and technology management
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Centre of Excellence Supply management in Twente
Twente one out of five global “centre of
excellence” in supply research
On the most important meeting in the field
(IPSERA congress) researchers from Twente
presented more than 10% of all papers
Only university in NL were students can chose a
specialisation in purchasing
Courses are oriented along the association’s
requirements for strategic purchasers (NEVI)
Research group on “upstream open innovation
and industrial purchasing”, i.e. innovations from
and with suppliers (Prof. Dr. Holger Schiele),
“public and service procurement” (Prof. Dr. Jan
Telgen), “purchasing in construction” (Dr. Hans
Voordijk)
UTIPS (University of Twente Initiative for
Purchasing Studies) is one of the “centres of
expertise” of the University of Twente
The University of Twente is leading in supply management research and education
Strengths Twente
Source: UTIPS
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Twente is quoted in the world for its supply management research, while students
profit from being exposed to the latest research findings
Scientific impact Twente (Management) – Brief sketch Top 20 papers
Source: Scopus analysis (11/2011), sorted for „business management“, 70% of
total, papers published by authors with affiliation Twente appearing on document
There are other databases and sorting
keys. With current professors, only,
finance would emerge as fourth topic.
Megatrends in procurement 2022.pptx 120619_Utrecht_Schiele Page 53 UTIPS.
We welcome you!
UTIPS – University of Twente Initiative for Purchasing Studies
Dr. Petra Hoffmann
Dr. Hans Voordijk
Dr. Jasper Veldman
Prof. Dr. Holger Schiele Prof. Dr. Jan Telgen
Dr. Fredo Schotanus & o
ther
researc
hers
Pro
f. D
r. H
olg
er
Schie
le | P
rofe
ssor
of Technolo
gy
Ma
na
ge
me
nt -
Inn
ova
tio
n o
f O
pe
ratio
ns | S
ch
oo
l o
f
Ma
na
ge
me
nt a
nd
Go
ve
rna
nce
| U
niv
ers
ity o
f T
we
nte
|
P.O
. B
ox 2
17
NL
-75
00
AE
En
sch
ed
e | T
he
Ne
the
rla
nd
s |
h.s
ch
iele
@u
twe
nte
.nl | p
ho
ne
+31
53
48
9 5
61
5
UTIPS.