Gespr

1
Further development of supplier
management Deutsche Bahn AG
Deutsche Bahn AG
Dipl. Ing. Sascha Pantel
Technology, Integrated Systems and Services -
Procurement
Buildings and Structures Product Area Supplier
Management
Berlin, November 2009
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Supplier management at DB is understood as an
overall control process and consists of 3 part
phases
OVERVIEW OF THE SUPPLIER MANAGEMENT PROCESS
New companies
1.
Supplier qualification
Supplier management as a continuous process

• Cross-functional and ongoing
• Updating and
• Continuing the
• supplier data
• Risk management

3.
Supplier development
2.
Supplier evaluation
Phasing out suppliers
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Key aspects of supplier qualification

• All suppliers are qualified, but with different
  degrees of intensity
• For this purpose, the suppliers' products/
  services are classified into risk categories
• Depending on the risk category of the
  products/services, qualification is made at
  different depths with different requirements
• Criteria for determining suitability are
  specialist know-how, productive capacity and
  reliability

1.
Supplier qualification
3.
Supplier development
2.
Supplier evaluation
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The risk assessment of the groups of goods
determines the qualification intensity of the
potential contracting party
Riskclassification
Example dimensions for determining the risk
Modules for qualification
very high
Basic data
Commer. criteria
Perform. criteria
Process criteria
safety
set
quality
high
Basic data
Commer. criteria
Perform. criteria
supply
costs
image
freely selectable
usual
Basic data
Commer. criteria
customers
environment
other criteria none
low
Basic data
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Defined criteria (partly goods group-specific)
are allocated to every qualification module
QUALIFICATION GRADATION LOGIC FOR THE
QUALIFICATION OF COMPANIES
Levels
Modules
Example sub-criteria
Top criteria

• DUNS no., Sector Code
• company, address, telephone no., contact
• banking connection
• VAT ID

Basic data
Contractual capacity
Supplier (future contract-ing partner)

• QMS in place
• ability to enter into risks (trade assoc. member)
• solvency of the company
• integrity of business management

Commer. criteria
Trustworthiness

• references at DB AG
• work at the required state of the art
  (DIN)/minimum technical requirements for
  performance
• necessary equipment/expertise (means of
  production, welding approval, )

Perform. criteria a and b
Reliability
Product/manu-facturer
Process criteria

• Manufacturer-related product qualification (HPQ)
• Q classification

Sustainability
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The Buildings and Structures pre-qualification
procedure forms the basis of high-quality
supplier qualification
Supplier qualification
Companies can undergo the pre-qualification
procedure at any time by applying to participate
Application of the PQ procedure forthe following
sub-systems
PQ system is designed throughout as a
two-stage procedure.
Planning services
Pre-qualification procedure stipulation of
objective rules and criteria stipulation of an
evaluation system
Track superstructure
Stage 1 legal, administrative and economic
criteria
Earthworks (general/special)
approval
Structural engineering
Stage 2 specialist suitability, productive
capacity and reliability
Protection services
approval
Construction supervision
Directory of the pre-qualified companies
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The DB supplier pool comprises 3 different
supplier categories

• QUALIFICATION CLASSIFICATION INTO SUPPLIER
  CATEGORIES AND INFLUENCING VARIABLES

Major suppliers with high purchasing volume
Significant markets and materials
Strategic suppliers owing to low substitutability
High relevance for DB business
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KEY ASPECTS OF SUPPLIER EVALUATION

• Evaluation is the target/actual comparison on
  the basis of specifications in the dimensions of
  quality, costs and dates along the entire supply
  chain
• Evaluations take place within a narrow timeframe
  according to defined events
• The result is a ranking of the suppliers
• Every evaluation is communicated
• Every evaluation has a consequence

1.
Supplier qualification
3.
Supplier development
2.
Supplier evaluation
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Supplier evaluation is an elementary part of
supplier management and comprises the dimensions
of quality, costs and dates
EVALUATION GRID FIRST AND SECOND AGGREGATION
LEVEL DB TOTAL
Phases in the procurement process
Quotation phase
Delivery and performance phase
Dimensions
Product evaluation phase

• Quality in use
• product evaluation
• quality of elimination of defects

• Quality of deliveries and performance
• quality of delivery performance
• quality of cooperation
• effectiveness of the QMS

• Quality of the quotation
• formal quality of the quotation
• quality regarding contents of quotation

Quality (gt20)

• Operating costs
• maintenance costs
• disposal costs
• costs for energy, auxiliary materials, operating
  supplies

• Price level and price transparency
• transparency/plausibility of pricing
• reasonableness of price level

• Cost development
• adherence to costs in contract period
• claim behaviour

Costs (gt20)

• Observance of deadline in case of defects
• reaction time after notice of defect
• duration of eliminating defect

• Observance of dates
• compliance with dates of
• delivery and performance
• behaviour with change of date

• Observance of deadlines
• and dates
• formal observance of deadlines
• assurance of set/expected delivery and
  performance dates

Dates (gt20)
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Goods group-specific features require
diversification of the evaluation questions and
conditions
CONSIDERATION OF UNIFORM BASIC PRINCIPLES AND
GOODS GROUP-SPECIFIC FEATURES

• Uniformly throughout DB,
• at least 80 of the purchasing volume is
  covered in supplier evaluations
• every evaluation is based on the dimensions
  of quality, costs and dates with a minimum
  weighting
• all results are communicated

• As a result,
• suppliers are evaluated transparently according
  to objective suitability requirements (productive
  capacity, reliability, specialist know-how)
• companies which do not fulfil this demand can
  be identified
• legally and revision-secure decisions are taken
  in the award process according to the principle
  of equal treatment and transparency

• Goods group-specific,
• different evaluation sheetsare generated
  (examples)
• construction services
• planning services
• subsoil evaluations and foundation
  consultancy
• construction supervision
• planning services (FA)
• protection services
• protection services (FA)
• provision of track material
• disposal of track material
• logistics services

FAframework agreement
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The ranking results from event-related data,
individual cases and an annual evaluation round
SCHEMATIC REPRESENTATION

• LOGIC OF OVERALL RANKING FOR EACH SUPPLIER

Supplier ranking
Event-related data along the supply chain(for
quotation, delivery and performance, warranty
each)
Annual evaluation round with every Business Area
concerning supplier portfolio

• on the basis of the event-related data
• in addition 2-3 qualitative criteria (e.g.
  technology, innovation capability, soft skills)

e.g. points
outstanding
91-100

• Quality
• Costs
• Dates

good
81-90
restricted
61-80

• Individual-case-related data with particular
  significance as threshold or limit values or
  "killer criteria" (0-1), e.g.
• compliance cases,
• insolvencies or dunning stages

poor
60
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KEY ASPECTS OF SUPPLIER DEVELOPMENT

• Every supplier evaluation leads to a structured
  reaction every evaluation has a consequence
• Depending on the significance of the supplier and
  his classification in the ranking, further
  development is performed with differing intensity

1.
Supplier qualification
3.
Supplier development
2.
Supplier evaluation
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The result of a supplier evaluation is always
communicated to the supplier
SCHEMATIC REPRESENTATION

• OVERVIEW OF THE COMMUNICATIONS CONCEPT

Supplier classification
Development measures are agreed on along with the
communication to the supplier
accepted
preferred
strategic
Outstand-ing100-91
Good 81-90
Ranking for each supplier
Restricted 61-80
4
poor lt 60
Poor lt60
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Supplier management
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