‘I often fell asleep after reading a couple of pages of an article. Then when I woke up, I forgot where to continue’. Eric obviously had to get used to an academic approach to company challenges. He currently spends three months at our university. The manager follows supply management courses, receives coaching and works on an individual project. One of the first lesson learned: ‘I should drink more coffee.’
Photo: Gijs van Ouwerkerk
Eric managed to muddle through and gained some valuable insights into the company that he has been working for for over ten years. ‘I became aware that in Baosteel, only the production and quality department are involved in supplier selection and evaluation.’ According to Eric, supplies concern all departments and some adaptations could be possible.
Aard Groen, professor in Innovative Entrepreneurship, agrees. ‘Successful companies follow some logical sequential steps. They first identify what the client wants. Then they see what they can produce, followed by identification of what they need to buy in order to realize that production.’ In this way, supplier selection is a matter of marketing, R&D and logistics, too.
Half of the saving potential
Coach and professor in Technology Management Holger Schiele added: ‘We found that about 60% of company savings are only possible when departments work together in supplier selection. This means that companies lose about half their saving potential when departments work in an isolated fashion’
There an interesting paradox in that, Dr. Liqin Brouwers-Ren believes. ‘Departments differentiate because they have varying goals. But ultimately, they have to integrate again.’
Eric will be at our university for more than a month to come. He will use that time to create a plan on how Baosteel could achieve more cross-functionality. Aard Groen: ‘Changing this will be a huge project. People usually do not like change because they feel that equals admitting that something is wrong. So people need to feel safe that they are allowed to change.’
It’s evolution
According to Holger Schiele, Baosteel is ready for that. ‘The current situation is not wrong. Cross-departmental collaboration is just the next evolutionary step to take. You cannot leapfrog these things, but the Baosteel organization is ready.’
Eric Zhao will present his final conclusions in April.
Mariska Roersen
