ASML’s business is growing quickly, and will continue to do so in the coming years, which will bring increasing spend and complexity to the supply chain. In anticipation of this growth, five main ‘pain points’ were highlighted within the SS organization, followed by six guiding principles that provide a framework to resolve them.This framework has led to changes to the PR organization, where Category Management is now the primary organization principle.
Each ‘Category’ (e.g. large frames, racks and cabinets) consists of products with a common supply base. Categories are grouped in so called clusters.
Three main clusters, ‘Metrology & Light Sources’ (M), ‘Lenses, Illumination & Positioning Systems’ (LI) and ‘Mechatronics & Electronics’ (M) will enhance consistency in our relationships with suppliers and BLs.Integrating the Account Managers of procurement into the clusters allows us to implement end-to-end responsibility from strategy development to execution and Supplier Relationship Management. It tackles the issue of shared leadership and creates clarity, both in our roles and in projecting a single voice to our suppliers.The reorganization also aims to bring efficiency. Whilst the Category Managers are responsible for their category’s strategy, Sourcing Leads will manage the day-to-day interactions with suppliers. Depending on spend with a supplier and its complexity and strategic importance, some Sourcing Leads will manage more than one. In this new hierarchy, each manager’s span of control will remain within reasonable limits.
“Leaders should be allowed to engage in meaningful problem-solving with their reports,” explains Jan. “What I don’t want is people solely managing people. I want us to focus on the content.”The manager of Wilton Sourcing will join the SS staff, given the size of the organization and the diversity of the procured parts and modules. The smaller Asia and San Diego PR sourcing groups will report to the respective Cluster Heads. The regional Sourcing Leads will report (dotted line) into the categories to secure alignment between strategy and execution. Project leads, our interface between BL programs and sourcing, will also report into the SS staff.
The reorganization is effective immediately, taking into account a handover period. Responsibilities will remain with their current owners until they’re handed over to a successor. “We aim to have the new structure fully up and running by January 2018,” concludes Jan. “A new PR SS&P, ready for the challenges the new year will bring – ready to MAKE US GROW