Ahmet CAMCI Sel ÖZCAN. Cansu KUŞ Suna YILDIZ Cansu YILDIZ Seyfettin ZÜMRÜT. Sefa ŞEN Cemil ŞİMŞEK Emrah YARIMOĞLU

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1 Ahmet CAMCI Sel ÖZCAN Cansu KUŞ Suna YILDIZ Cansu YILDIZ Seyfettin ZÜMRÜT Sefa ŞEN Cemil ŞİMŞEK Emrah YARIMOĞLU

2 7 billion $ turnover and 23,000 employees White Goods Textile Energy Electronics Real Estate 2/22

3 VESTEL m2 Covered area 3/22

4 Achieving sales of 10 million units of electronics worldwide, the company has 83 percent of television exports in Turkey. TV Exports In Turkey Vestel Electronics s market share is 18.4% of total TV set sales, comes second after Samsung s 28.5%. Other Companies 4/22

5 LCD TV LED TV SETBOX MONITOR VIDEOWALL TOUCH SCREENS SMART BOARD TABLET **New MOBILE PHONE **New 5/22

6 PRODUCT COMPONENT SNOW BOX PRODUCTION UV PAINT SHOP PLASTIC PRODUCTION FINAL ASSEMBLY AGING FINAL TEST PACKING MAINBOARD PRODUCTION POWERBOARD PRODUCTION PRODUCT 6/22

7 Receive orders Indicate high-season SUPPLIER Determine special designs cost SALES DEPARTMENT R &D DEPARTMENT Deal with same process for domestic supply FINANCE DEPARTMENT Check bills PURCHASING DEPARTMENT MANUFACTURING PLANNING DEPARTMENT Create longest plan Determine quantity Enter amount of order MANUFACTURING DEPARTMENT CUSTOMER Design special customer requests Deal with transportation LOGISTICS & IMPORT DEPARTMENT Provide material MATERIAL PLANNING DEPARTMENT Start production Open orders in SAP for foreign materials Make arrangements about transportation 7/22

8 Ordering Process Purchasing Department Supplier Evaluation Receive offers Deal order functions Evaluate suppliers performance, but not systematical Research and provide material and supplier 8/22

9 Few suppliers for important components Various suppliers for other components 9/22

10 DELIVERY COST QUALITY COMPANY PROFILE 10/22

11 To determine the most appropriate supplier with acceptable cost through company s requests. In addition to cost, other criteria must also be taken into consideration. 11/22

12 SUPPLIER NETWORK GLOBALIZATION PURCHASING FUNCTION COMPANY S REQUESTS COMPETITIVE ENVIRONMENT OPTIMIZATION 12/22

13 The Most Important Criterion Cost priority supply Pay insufficient attention to quality and other points 13/22

14 Material Planning Department Purchasing Department Quality Control Department NOT SYSTEMATICAL! 14/22

15 There is no supplier evaluation system in Vestel Electronics. Personal experience oriented evaluations 15/22

16 JAN FEB MARCH APR MAY JUNE JULY AUG SEP OCT JAN FEB MARCH APR MAY JUNE JULY AUG SEP OCT The rework quantity that arises by supplier quality problem in high-season of company causes quite high cost. 16/22

17 Financial position Late delivery Extra delivery cost 17/22

18 To reduce cost To improve quality To reduce delivery time To have a more robust system 18/22

19 To develop a decision support system for supplier evaluation process. 19/22

20 User friendly Easily accessible Can easily be updated Not only evaluation, Early intervention the suppliers who have problem Minimize work force Raw materials; Cheap High quality On time delivery 20/22

21 Focus on domestic product groups Through ABC Analysis Determine the most important product group 21/22

22 There is an old saying: Without supplies, neither a general nor a soldier is good for anything. THANK YOU FOR ATTENTION 22/22

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