KORN CONSULT GROUP is developing a new supplier management tool in cooperation with Prof. Dr. Dust and his team the product “Total Supplier Management (TSM)”.
TSM is a new Supplier-Management tool. The goal is to manage digitalization processes for supply management with the help of data mining and classification.
Users will be able to predict future supplier events on statistical base, logarithmic derivation and recognized anomalies,improve planning and decision making and optimize value chains efficiently.
Risk assessment in the digital age
Today’s risk assessment is primarily based on methods like weighted and consolidated key figures with traffic light evaluation. These processes do not fulfil the requirements of a digital and global value chain. A new method to control risks in digital value chains is needed. Total supplier management provides the necessary framework.
An ever-increasing degree of digitalization results in the availability of large quantities of data. This often leads to a data overload and insufficient utilization of valuable information. Business analytics and knowledge management are required to analyze big data and control risks in digital value chains. Data mining and artificial intelligence are important tools to gain knowledge and aid decision making.
Data quality filtering
Total supplier management applies continuous risk filters to the value chain to assess data quality for a more efficient generation of knowledge. A four-dimensional approach guarantees an accurate information quality classification. After a one-time conceptional check further formal, statistical and logical checks are applied continuously to identify valuable data.
Integration of existing systems
Most companies have incomplete supplier information and use an average of 4 or 5 separate systems for their supplier management. Spreadsheet programs are still prevalent in many sectors. Efficient management of the digital supply chain requires the linkage of existing systems, data and risks. The creation of a central supplier file makes an efficient, holistic approach to supplier management possible.
Evaluation and forecasts
The entire supply and value chains are regularly evaluated with a stepped approach including forecasts, trends and soft facts. Critical suppliers are identified earlier to make efficient decisions on preventive measures. Supplier-specific factors like process costs, risks, performance and added value are analyzed to detect anomalies inside the supplier base and interpreted to allow the initiation of improvement measures regarding critical suppliers.
Customer case data anomalies are identified and analyzed to enable preventive monitoring. Digitalization processes can therefore be utilized to develop, monitor and optimize the supplier base and the required demand of resources. The result is increased efficiency, optimized supplier management, decreased skill shortage and ultimately a positive change in company culture.