Transcript The Challenge: To Create More Value in All Negotiations

What is Discount
What can we learn from
ALDI and BIM?
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Why is simple so
difficult?
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Jetzt auf türkisch
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1995
22
6.800.000.000
3.627
20.000
5.500.000.000
10.000.000.000
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Complexity
Institute for Simplicity, Dieter Brandes & Nils Brandes
1. work
2. efficient
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comple
x
simple
Institute for Simplicity, Dieter Brandes & Nils Brandes
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1
The Complexity Curve
Complexity (cost)
´
Number of components
Number of options
Number of items
Number of employees
Number of suppliers
Number of customers
Number of rules
Number of...
Elements
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1-
-
Avoid Complexity
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1. limited Assortment
2. daily consumption
3. easy to handle
4. best Quality
5. lowest price
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“Wenn uns bei der
Kalkulation etwas beschäftigt,
dann nur, wie billig wir eine
Ware verkaufen können und
nicht, welchen höchsten
Verkaufspreis wir erzielen
können“ – Karl Albrecht, 1953
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Different Types
6
24
Customer looked
40 %
60 %
Customer bought
30 %
(15)
3%
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(2)
ALDI versus Wal Mart
Items
Sales ww
Bil. USD
Sales/Item
Mil. USD
120.000
1.800
450
80
3,75
44
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2-
-
Reduce Complexity
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HAYIR
!
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Market Research
Marketing
Public Relations, Interviews
HAYIR
!
Fancy offices, expensive company
cars
Staff Departments
Budgets
Data Warehouse
Controlling
Consultants
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1
-3Manage Complexity
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Autonomy and
Responsibility
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Delegation and
Decentralization
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CEO
CPO
CFO
Category
Managers
Accounting
COO
Internal Auditor
...
IT
as much
decentralized as
possible – central only when
necessary and reasonable
General Manager
Sales Manager
District
Manager
Accounting
Administration
Manager
Regional
Purchaser
Property
Manager
Logistics
Manager
Personal
IT
Receiving
Department
Inner
Transportation
and Picking
Store Manager
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Dispatching /
Truck Fleet
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Trust and Control
©
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Institute for
for Simplicity,
Simplicity, Dieter
Dieter Brandes
Brandes &
& Nils
Nils Brandes
Brandes
1
Trial &
Error
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Optimize
Maximize
and
Minimize
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Real / actual
numbers instead of
plans and budgets
Less (data) ist more
Just enough is more
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Continuous
improvements
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現地現物
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1
現地現物
Genchi genbutsu
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“Continuous
improvements are
better than
delayed
perfection“
— Mark Twain
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Small is beautiful
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1
Details
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