Lunchtime Seminar - A typology for selecting an appropriate Total Landed Cost method in international supplier selection decisions
A typology for selecting an appropriate Total Landed Cost method in international supplier selection decisions
Andreas Pumpe works as a research assistant at the Institute of Process Management and Logistics at the University of Applied Sciences in Münster and his research focuses on the global supply chain design. He holds a master’s degree in logistics and has gained work experience in Germany and abroad. He is an external doctoral candidate at Prof. Dr.-Ing. Bernd Hellingrath’s Chair for Information Systems and Supply Chain Management. In his Ph.D. project he explores the Total Landed Cost Analysis in international supplier selection decisions.
The Total Landed Cost (TLC) often comprises of a large share of the total international sourcing costs and thereby determines the cost saving potential. Nevertheless, different studies clearly show that companies often underestimate the true costs, with the consequence of yielding less than expected savings or in fact uneconomical results.On the one hand, companies often have to deal with a set of different international supplier selection situations, on the other hand the literature deals with TLC methods varying in the degree of accuracy and complexity. Up until now, a link between the different situations and the various methods is missing.In this talk, Andreas will present a typology for selecting an appropriate TLC method, based on an exploratory world café method with 24 purchasing and supply chain managers. In line with the newly developed systematization Andreas also gives an overview about supporting software tools on the market. The typology itself is an integrated part of a comprehensive framework for an efficient decision support in international supplier selection decisions.