IK 02 Marktanalyse und Beschaffung (EN)

IK 02 Market Analysis and Procurement

In this module, you will learn the fundamental methods for the systematic analysis of markets and procurement processes. You will understand how to use ABC analysis to distinguish critical from less important items and use XYZ analysis to evaluate the consumption behavior of inventories. Additionally, you will acquire knowledge in supplier evaluation and various ordering procedures as well as utility analysis as a decision-making aid.

Concepts and Background

ABC Analysis

A method for classifying inventory items based on their value contribution. Typically, 20% of items (A-items) that account for 80% of the value, 30% of items (B-items) with a 15% value contribution, and 50% of items (C-items) with a 5% value contribution are distinguished.

XYZ Analysis

Evaluation of items based on the degree of fluctuation in demand. X-items have constant demand, Y-items show moderate fluctuations, and Z-items have highly fluctuating demand patterns.

Supplier Evaluation

Systematic evaluation of suppliers based on predefined criteria such as price, quality, delivery reliability, service, and flexibility to identify the optimal source of supply.

Order Point Procedure

An ordering procedure where an order is automatically placed when the inventory level reaches a predefined order point. The order quantity is constant in this case.

Order Cycle Procedure

An ordering procedure where orders are placed at fixed time intervals, with the order quantity being variable and based on the current inventory level.

Practical Steps

1. Create a complete item master database with all relevant information about the products to be analyzed. This forms the basis for any analysis method.
2. Perform the ABC analysis by sorting the items by their sales value and dividing them into the three categories A, B, and C. Use a spreadsheet with formulas for automatic classification.
3. Analyze the consumption patterns of the items for the XYZ analysis by calculating and classifying the dispersion of the monthly consumption values.
4. Develop a supplier evaluation form with weighted criteria (e.g., price weighting 30%, quality 25%, delivery reliability 20%, service 15%, flexibility 10%).
5. Calculate the order point for critical items using the formula: Order Point = Daily Requirement × Lead Time + Safety Stock.
6. Implement the order cycle procedure for items with constant consumption by establishing a fixed order cycle (e.g., weekly or monthly) and determining the optimal order quantity.
7. Perform a utility analysis for important procurement decisions by weighting the criteria and evaluating the alternatives.

Common Pitfalls

Further Resources

• ABC Analysis: Definition and Calculation - BWL-Lexikon
• Supplier Evaluation with the Key Figure Method - Haufe
• Order Point Procedure and Order Cycle Procedure - IIM-HH
• Utility Analysis: Instructions and Examples - Project Management Expert

Knowledge Check

Four questions for self-assessment. Click on each question to see the correct answer and explanation.

What is the main characteristic of ABC analysis in procurement?

• A) Classification by alphabetical order of items
• B) Differentiation of items based on their value contribution
• C) Evaluation based on the age of products
• D) Grouping by supplier regions

Correct Answer: B. ABC analysis classifies inventory items based on their value contribution to set priorities. The other options do not describe the core function of ABC analysis.

Which ordering procedure is characterized by fixed order intervals and variable order quantities?

• A) Just-in-Time procedure
• B) Order point procedure
• C) Order cycle procedure
• D) Minimum order quantity procedure

Correct Answer: C. In the order cycle procedure, orders are placed at fixed time intervals, with the order quantity being variable. The other options describe different ordering procedures with different characteristics.

How are items with highly fluctuating demand classified in XYZ analysis?

• A) as X-items
• B) as Y-items
• C) as Z-items
• D) as C-items

Correct Answer: C. Z-items have highly fluctuating demand patterns. X-items have constant demand, Y-items show moderate fluctuations, and C-items are part of ABC analysis.

Which criterion is typically the most weighted in supplier evaluation?

• A) Flexibility for product changes
• B) Service offerings
• C) Pricing
• D) Delivery reliability

Correct Answer: D. Delivery reliability is often the most weighted criterion because unreliable deliveries can affect the entire production chain. Price, flexibility, and service are important but typically weighted less than reliability.