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PM in the Upstream Value Chain

In: Progress in Performance Management

Author

Listed:
  • Marc Helmold

    (IUBH)

Abstract

Performance in the upstream value chain deals with the management of the supply side and the purchasing of raw materials, semi-finished and finished parts or services. Synonyms of purchasing are procurement, acquisition or supply management. Supply management plays in this context a crucial role in securing this input and to manage factors like quality, cost, delivery, technology and alpha elements (Q-C-D-T-plus alpha). The essential point is here that supply management has to link all the activities between suppliers, their own organization and the customers in a timely manner. In recent years, there was a trend for many industries such as automotive, railway, aerospace and machinery to reduce their own value-adding activities. As a result, companies were becoming more and more dependent on supply networks. That gave a crucial role to the supply management function. Many companies had/have value-adding activities of less than 15%, which means that 85% of their activities were/are outsourced to third parties.

Suggested Citation

  • Marc Helmold, 2019. "PM in the Upstream Value Chain," Management for Professionals, in: Progress in Performance Management, chapter 4, pages 51-66, Springer.
    • Handle: RePEc:spr:mgmchp:978-3-030-20534-8_4
    DOI: 10.1007/978-3-030-20534-8_4
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