International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Company Value Development by Supply Chain Management

Increasing the value of the company is one of the main tasks of the management in order to survive in the market in the long term. Due in part to the very high proportion of value creation at suppliers outside of the company, especially in the case of manufacturing companies, the development of the company is strongly influenced by them. Suppliers are increasingly involved in processes of their customers or even take over processes by themselves. As a result, the management of supplier relationships through purchasing is important. The type of the cooperation with the suppliers is in a sustainable process of change, in particular due to Industry 4.0. Nevertheless, it is still crucial to generate Value Added through supplier contributions. For these reasons, quantifiable contributions by suppliers to increase Company Value are examined, taking into account the general conditions and opposing effects. One key finding from the study is that purchasing has the highest impact on increasing Company Value from product and production cost improvements with suppliers. Therefore, for a successful, sustainable supplier relationship an excellent delivery and quality performance is of high importance, which in turn represents the basis for future Value Contributions. The influences from Industry 4.0 contribute in particular to the improvement of process costs and information flows. It is also expected overall that the intensity of cooperation with suppliers will continue to increase over the next five years.

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