Volume 21, Number 2 Article by Roger Moser June, 2009
Challenges in Sourcing and Supply Management:The Case of EADS : In Conversation with Hans Mundt :
Prof Roger Moser discusses the evolution of the purchasing function from its traditional routine service character to a more prominent role in strategic management and against this background, talks to Mr Hans Mundt, Senior Vice President Procurement at EADS a global leader in aerospace, defence and related services, with an Indian subsidiary an organisation that is facing the challenges of such a transformation.
The challenges for the all-important procurement function include monitoring the performance of the supply base given EADS's demanding requirements in terms of quality and delivery performance,supplier relationship management especially in the face of unforeseen crises (such as the present financial crisis),and global sourcing.
The EADS sourcing decisions are led by four drivers: market access, value for cost, rare resources, and risk. India has become a major sourcing target for EADS, outranking Europe in value for cost, offering viable market access and rare resources in terms of its large pool of scientific and technical manpower and is home to IT clusters.
Declaring procurement to be one of the most fascinating and challenging functions, Mr Mundt said that a successful Chief Purchasing Officer would require the vision to look well beyond the procurement function, and a deep understanding of the business environment, the industry, the end customers, the suppliers and internal operation functions.
Reprint No 09103b
