Supplier Management
Optimize your supply chain by aiming for the most cost effective purchasing, the best level of service from suppliers and the highest quality of purchased goods.
For Arvato, supplier management means optimizing your supply chain by ensuring the most cost effective procurement, the best level of service from suppliers and the highest quality of purchased goods. Arvato successfully plans, manages and controls relationships within the supplier network, including contractual agreements, terms and conditions. Arvato can take over this function for both existing and new suppliers. Arvato's own global purchasing team is strategically spread across the EMEA, Americas and APAC regions and is therefore able to perform the strategic supplier management function on a global scale.
Our strategy:
- Ensure and optimize risk-free procurement
- Discover and utilize possible synergy effects
- Build up, maintain and optimize successful supplier relationships
arvato constantly monitors and assesses its suppliers in order to pursue the main aim: "All suppliers to become A-Vendors".
Supplier rating system
In order to be able to manage the supplier portfolio, Arvato uses a SAP-based supplier rating system to classify all suppliers into three categories (A, B or C) based on 5 main criteria such as price, quality, delivery, service and contract management.
For Arvato this rating process is a central tool to support the strategic decision making for the supplier management process. The 3 categories are defined as follows:
A - Supplier is preferred for further business.
B - Some optimization work should be done with the supplier. Supplier needs to improve to be capable for future cooperation.
C - Supplier is not preferred for further business. Changing to other A or B suppliers is recommended.
Arvato is constantly monitoring and assessing its suppliers based on the criteria mentioned above and uses the consolidated results of this ranking to manage the supplier portfolio to achieve the following aims:
- Optimizing supplier control activities (decentralized / centralized screening)
- Enhancing market transparency
- Improving prices and delivery conditions
- Raising quality standards
