In companies, a significant part of the value creation is provided by suppliers. This share of external added value is an increasingly critical factor for company success. However, today’s cooperation models are often still characterized by the balance of power between customers and suppliers, which can lead to frictional losses. Cooperation models such as Total Supplier Management (tsm), with its integrated and cost-optimized control of the entire supplier base, are becoming a success factor.
tsm is a holistic solution approach that establishes a cross-functional supplier management in the company and thus makes the complexity manageable. With adapted corporate structures and innovative methods, it is possible to sustainably secure the risks in the supply chain. An intelligent supplier evaluation is a central component of tsm in order to be able to counteract the risks in the complex supplier network and to eliminate them at an early stage. An important prerequisite for this is successful data management. Companies already collect a lot of data, but their quality is often insufficient to derive knowledge for prevention. Many companies therefore often operate a primarily reactive risk management.
With tsm the workflow changes from reaction to prevention. This is what makes efficient supply chain management possible.
Knowledge is generated about the supplier base as well as about the own company and serves as a transparent basis for decisions.
Through coordinated decision-making processes, cross-functional projects are initiated that stabilize and standardize internal processes, coordinate interfaces with suppliers and increase effectiveness.
Consistent and holistically available knowledge reduces resentment, leads to a cultural change and consequently to cooperation instead of silo mentality.
Both internal and external performance is significantly improved by preventive risk identification and the coordinated handling of risks. On average, this is reflected in EBIT with an increase of 2-6%.