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Supply Chain Management in Shipbuilding

Instruments to manage large supply chain and subcontracting, Weser-Ems region, Germany


Contact person:

Dieter Meyer


URL: www.meyerwerft.de


Link of the GP to the RIS3 steps:

Step 5. Establishment of suitable policy mixes


Country: Germany         Name of the region: Weser-Ems         Level: NUTS II


Description of the GP:

Within the field of competence „Maritime Economy“ in Weser-Ems the Meyer Werft is one of the key players. Meyer Werft, based in Papenburg, was founded in 1795 and is in its sixth generation of family ownership. With direct staff of about 3,100 people the shipyard is one of the main employers in the region Weser-Ems.

Supply chain management and subcontracting are of central importance for the shipyard. The current share of subcontracting is about 75 per cent per cruise ship. Due to this the Meyer Werft places much emphasis on good cooperation with its suppliers.

The following figures are examples of average purchasing volumes per cruise ship :

  • Steel 25,000 ts
  • Outfitting equipment 20,000 ts
  • Carpeting 40,000 sqm
  • Paint 220 ts
  • Cables 2,000 km
  • Pipes 200 km
  • Toilets 1,800 pcs
  • Sprinklers 9,000 pcs

In regard to the shipyard's large share of contracted work to external companies for cruise ships, the Meyer Werft implemented several instruments to manage these processes:

Supplier Registration / Meyer Neptun Online Portal

The Meyer Neptun Portal is an internet-based application through which Meyer Werft and Neptun Werft communicate with their external partners. An online procurement via the portal is supposed to be implemented in the future.

At present three applications are available in the Materials Management/Purchasing section of the portal:

  • the Self-Disclosure (a large-size database containing data of existing suppliers and of potential, future suppliers)
  • the Regional Network (a section in which companies headquartered within a radius of approx. 150 km from Meyer Werft and Neptun Werft can present themselves)
  • the Market Place (a bulletin board open to all portal members)

Award “Partner of the Year”

The "Partner of the Year" award is presented to selected suppliers of the MEYER WERFT every year. This award is based on the supplier rating that was introduced in 2005 within the framework of the shipyard's supplier management. Since then these ratings have become an ongoing process.

Opportunities Day

Establishing contacts to small and large-size companies as well as intensifying existing contacts is crucial to Meyer Werft. In the past this goal was, among others, pursued during the "Regional Days" to which the yard invited regional companies on its premises.

To be able to define Meyer Werft's requirements more in detail and to find the suitable partners, the concept of this event was thoroughly revised. Consequently, on 21 November 2013 representatives of more than 30 companies had accepted the yard's invitation. Talks were held with yard employees from Purchasing, Design and Production regarding defined topics in the fields of electro-technology, interiors, steel construction and HVAC.

As a result plenty of approaches and options for a cooperation were identified which are now being followed up.

Challenges addressed by the GP:

Focus on companies’ needs
Understand and take into account companies needs

Impact and beneficiaries:

The Meyer Werft in Papenburg is of central importance for the economic development in the region Weser-Ems. This is partly due to the fact that the shipyard is a great direct employer. In addition, the shipyard is closely associated with a variety of suppliers. A study from 2009 examined the economic importance of Meyer Werft GmbH for the region. It came out that 12% of the employment effects of the preliminary work of Meyer Werft focuses on the districts of Emsland and Leer. The share of preliminary work in the two districts has doubled since 2005. This illustrates the increasing importance of close spatial connections of the shipyard with its suppliers. In the course of capacity increases and efforts to increase productivity, the experts anticipate a further increase in demand for spatially nearby suppliers. These are direct starting points for regional economic development.

Within its knowledge and specialisation strategy Weser-Ems focuses on maritime economy and develops strategies to support companies from this sector.

Requirements and limitations:

A precondition for the implementation of such measures is a sector / technology leader with a high purchasing volume in a region. This company shall maintain an open corporate culture and put great importance on the proximity to suppliers. Due to the fact that processes in shipbuilding are partially related to heavy industries, proximity to suppliers is more important than, for example, in the automotive industry.

It can, however, be noted that the regional structural policy has only limited manage and support opportunities in these processes. The requirements and procedures are determined by the company.

From a strong focus on a specific industry in a region, structural problems may arise.

Funding source:

Annual budget in Euro:    data n/a
Funding sources:     hosting company