From key components and services fulfill the requirements (Trumpf


From perspective of suppliers, Trumpf
sets high performance standards when it is selecting its suppliers so that it
could maintain and expand the position as a provider who could offer high
quality and innovative products and services (Trumpf Inc.). These standards
include that suppliers have the ability to provide high-quality, competitive
price, low replacement times and highly flexible products and services (Trumpf Inc.). These standards are
the fountain for Trumpf to produce its products at high quality degree. Furthermore,
Trumpf also requires suppliers’ technical experts to make sure that key
components and services fulfill the requirements (Trumpf Inc.). As a leader in the
industry, Trumpf also sets agreements with suppliers to avoid misunderstanding
or conflicts in further collaboration (Trumpf Inc.). These agreements
are named Conditions of Purchase and Goods
delivery guideline (Trumpf Inc.). Moreover, orders
will be awarded when the total costs, supplier status and any available
supplier evaluations are at a high performance level (Trumpf Inc.). The effect of the
action is not only to motivate suppliers but also employees from Trumpf.

Before introducing
how Trump increases its efficiency and responsiveness, one point has to be
mentioned. Efficiency and responsiveness cannot be improved at the same time, and
they have to be trade off by the company. Since efficiency stands for less
inventory and making customers willing to pay, and responsiveness represents
more inventory and customer’s priority is cost or price.

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Generally, based
on the case study, Trumpf’s supply chain strategy was not mentioned. In addition,
the supply chain strategy is implemented to organize the material procurement, transportation
of material, manufacture of products and distribution of products. As a result,
methods that undertook by Trumpf in order to improve its efficiency and
responsiveness will be explained from the perspective of the supply chain. Generally
speaking, the supply chain can be divided into three phases. The first phase is
the supply process, which enables a company to organize the relationship with
the suppliers, also the transportation of goods (Dawei, 2011). The second phase is
the manufacturing phase, which requires products to reach goals (Dawei, 2011). The third phase is
the customer phase, which needs a company to deliver the product to customers
followed by specific requirements, and put efforts on the after sale service (Dawei, 2011). In this chapter,
how Trumpf utilizes its supply chain strategy to increase its efficiency and
responsiveness will be introduced.