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CTI-AVBD: Procurement and Management of Complex Services

The Advanced Value Break Down Approach

Services are a crucial factor in companies’ value creation. In 2008, more than 70 percent of the Swiss working population was employed in services. In manufacturing companies, this importance is reflected by a high portion of externally purchased services. Depending on the sector, these services account for up to 40 percent of total purchasing volume. This development is enhanced significantly by two dominant economic trends. First, companies focus on their core competences and outsource many formerly self-provided services. Second, complex service contracts are increasingly associated with the procurement of capital goods and service provision is fixed long term. As these services are increasingly procured internationally, their origin as well as the comparability of the service quality and costs can vary greatly. In this context, services, which are specifically tailored to the contribution in kind, drive complexity.

Although the importance of service procurement for the success of companies has been recognised, the majority of procurement managers state that it is significantly more demanding than that of tangible goods. Particular challenges are the creation of market transparency, the identification of savings potential and ensuring high quality and reliability.

In this context, the research project “Advanced Value Break Down in Service Purchasing and Management” developed, together with several practice partners, a systematic method based on customer value for the identification of potential external service cost savings and quality improvements. Specifically, the approach consists of the following elements:

(1) Establishment of a conceptual framework and analysis of the status quo in the area of services

(2) Conception of an assessment logic and its generic design

(3) Development of generalized guidelines for the procurement and management of services

(4) Implementation of generalized methods for practice as well as an accompanying assurance of the replicability of the findings

 

Fact Sheet:

Duration: 2015 - 2017

Commercial Partners: Swiss Post AG, Novartis AG, Schindler Management AG, Geberit International AG, Oettinger Davidoff Group
Implementation partners: Innovative Management Partner (IMP), Swissmem, procure.ch
Sponsor: Commission for Technology and Innovation (CTI)

 

Contact

University of St.Gallen
Chair of Logistics Management
(LOG-HSG)
Dufourstrasse 40a
CH-9000 St. Gallen
Email:
Phone: +41 71 224 72 80
Fax: +41 71 224 73 15

  • http://www.logistik.unisg.ch

Prof. Dr. Erik Hofmann
Projektleiter & Titularpofessor LOG-HSG
Email:
Phone: +41 71 224 72 95


Martin Hänsel
Wissenschaftlicher Mitarbeiter LOG-HSG
Email:
Phone: +41 71 224 72 88






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  • Institute
  • Research
  • Education
  • Weiterbildung & Events
  • News &Contact
  • Mission Statement
  • Team
  • Association
  • Partners
  • Executive Committee
  • Current employees
  • Senior Executive Advisor - Ralf Mock
  • Interns
  • Former PhD students
  • Public Organisations
  • Associations
  • Industry Partners
  • Scientific Partners
  • Research projects
  • Best Practice Award
  • Competence centers at LOG-HSG
  • Supply Chain Viability Study
  • Innosuisse – Blockchain and IoT-based Supply Chain Transparency and Automation
  • Logistics Market Study Switzerland
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