ASML P&SM function is advanced and has
well developed global sourcing strategies(Trent and Monczka,2005). ASML has
most of the characteristics of outstanding global sourcing. According to the checklist as suggested by(Trent
and Monczka,2005, pp 30).
ASML has executive commitment
to global sourcing where managers from cross-sector participate in a global
sourcing steering committee, strategic sourcing lead has the authority to
translate ASML’s global sourcing vision into reality, strategic sourcing
executives work together with other sectors top gain support , strategic
sourcing lead makes strategy presentations to ASML executive committee.
Strategic sourcing department hire qualified professionals to join strategic
sourcing and procurement teams.
ASML has rigorous and well
defined processes, where well defined processes are in place that require
strategic sourcing and procurement professionals to establish goals, meet
milestones and these KPI’s are reported to executives, lessons learnt sessions
are conducted at the end of each project and results are shared and distributed
ASML has availability of
required resources, budget and qualified staff for strategic sourcing and
procurement, relevant information is available to project teams.
ASML has SAP ERP system which
provides access to required data and information on real-time basis, all
information regarding BOM, prices is stored in SAP, also analysis is done
regularly to identify part usage, supplier performance is regularly measured via
ASML has a supportive
organizational design where formal executive committee oversees the global
sourcing process, procurement is a part of product team, strategic sourcing and
procurement are separated where strategic sourcing is responsible for global
sourcing and operational activities are taken care by procurement function.
Sourcing is always a part in product team as well as aligned with marketing
during new product introduction.
Product teams meet regularly to
discuss progress, project team regularly report progress to higher management,
project information is posted on ASML intranet.
There is structured methodolgy
to validate savings form global sourcing, proper category management and spend
analysis helps identify areas where savings can be made and can be validated.
ASML does need to use more automation in order to make category management and
spend analysis efficient, currently most of the analysis is done on excel sheet
a more automated software could help analysis more efficient.
Although ASML’s P function is quite
mature, major challenges always exist as the organization is heavily dependent
on suppliers. ASML works closely with its product related suppliers to develop
further competencies in the area of QLTCS. ASML has a lot of focus on sustainability,
however more can be done in the area of sustainability. ASML is making
continuous efforts to improve in the area of sustainable sourcing.