*KF²Strategy is the strategic partner of choice for Value Sourcing 4.0*

Press Release KF²Strategy GmbH - 05/27/2015

Digitalization in a time of industry 4.0 and demands on Sourcing Portfolio Management to be both intelligent and of highest quality are benchmark for KF²Strategy’s VALUE SOURCING 4.0 approach. Sourcing Portfolio Management in terms of VALUE SOURCING 4.0 means that technologies, processes, competences, assets, products and services must be provided under the special challenges of digital transformation in order to implement the optimal, competitive supply chain architecture. VALUE SOURCING 4.0 provides the deciding answers to global trends of digitalization and industry 4.0 with respect to one’s own value chain structure.  VALUE SOURCING 4.0 shows that sourcing portfolio management, whether pertaining to potential acquisitions or the establishment of new structures and resources, is subject to dynamic change processes. Only with consideration of the new “rules of the game” it will be possible for firms to accomplish an optimal VALUE SOURCING 4.0.  KF² Strategy’s VALUE SOURCING 4.0 approach encompasses an analysis based on an innovative methodology to determine “what is mandatory, optional or not necessary and in which form” in order for the individual company to achieve its optimal supply chain architecture based on digitalization and industry 4.0. In a second step, with consideration of the company strategy, a multi-level structured implementation concept is developed.  VALUE SOURCING 4.0 shows particularly high relevance in various industries with respect to collaborative, digital development projects having both internal and external components.

A simple example from the automotive industry: every vehicle contains electrical systems and subsystems in areas such as powertrain, safety, comfort and communication.  These systems contain both hardware and software. While the supplier for the hardware components is set, it often needs to be clarified, who will to what extent provide the software engineering. It also needs to be specified which roles the involved parties are to take on and with respect to digitalization who will participate with what system information and with what rights (Digital Rights Management).  In this regard, initiatives such as Autosar (Automotive Open System Architecture) are to be noted, whose aim it is to push for standardization in electronic architecture in order to be able to better reuse and exchange software modules. This subsequently leads to inevitable strategic considerations and necessary calibration with regard to the sourcing portfolio management and the company’s sourcing categories in the value and supply chain of the automotive industry in VALUE SOURCING 4.0.

The implementation and roll-out of KF² Strategy’s VALUE SOURCING 4.0 approach encompasses not only the implementation of  the individual company’s optimal supply chain architecture through an innovative sourcing portfolio but also its continuous monitoring.  Furthermore easily implemented mechanisms are installed in order to take on necessary adjustments in sourcing portfolio management so that global, digital as well as industry 4.0 requirements can be met on a sustainable basis.

Dr. Andreas Kipp, CEO & Managing Director of KF² Strategy, concludes:
„Our VALUE SOURCING 4.0 approach intends to establish an active, optimal  Sourcing Portfolio Management with consideration of the individual company’s competitive positioning,  in unison with the company’s strategy with regard to digitalization, as well as industry 4.0.“

Keywords: VALUE SOURCING 4.0, industry  4.0, digitalization, Sourcing Portfolio Management