Enabling Procurement Transformation and Maximizing Business Results through a Global Technology Platform
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1 Enabling Procurement Transformation and Maximizing Business Results through a Global Technology Platform Masco Brian Smith Director, Global Supply Chain Services Ronald Dreher Manager, esourcing GEP Santosh Nair Vice President
2 Enabling Procurement Transformation and Maximizing Business Results through a Global Technology Platform Presenters: Brian Smith Director Global Supply Chain Services, Masco Ron Dreher Manager esourcing, Masco Santosh Nair Vice President GEP
3 GEP Company Introduction: GEP Company Introduction Reducing costs and driving savings to the bottom line gets us excited. GEP PEOPLE are distinguished by their drive to do better, go further and achieve more for clients. A global leader in procurement services and technology (Gartner, Everest, HfS, Ardent, Hackett, Spend Matters) Focused exclusively on sourcing & procurement Billions in spend managed annually End-to-end eprocurement technology flexible, targeted, unified, complete Innovative source-to-pay platform purpose built for mobile, touch, cloud Large repository of best practice workflows, tools and templates More than 180 Fortune 500 & Global 2000 Customers Delivery centers in Europe, North America & Asia, supporting multiple languages ISO 9001:2008; SSAE 16, SOC 2 certified NMSDC certified minority owned enterprise Mexico City Princeton, NJ Clark, NJ London Prague Mumbai Shanghai São Paulo Hyderabad Singapore Sydney 3
4 SESSION OBJECTIVES CONTEXT Context and Session Objectives Maximize scale, flexibility and effectiveness of the procurement organization by integrating with an external service provider. This session will highlight progress to the steady state phase with our external services partner, improving value delivery all along. We will discuss the critical success factors we put in place and the way we got adoption for the technology platform across our global business units. Further, we will discuss steps we have taken to ensure a strategic partnership with our technology provider and maintain high motivation levels of both the teams. And, finally, some key successes enablers. Journey to the steady state phase of procurement transformation with an external services partner How a complex global technology implementation can be managed successfully Critical success factors to extract value from a cutting-edge technology platform Key drivers for change management and adoption How to enable a true partnership mentality with the technology service provider 4
5 Agenda Masco Corporation Overview Strategic Objectives & Supply Chain Goals Transformation Journey Critical Success Factors 5
6 Forward-Looking Statements This presentation may contain forward-looking statements based on current assumptions and forecasts made by Masco corporation Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Masco public reports, which are available on the Masco website at The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. 6
7 Masco Corporation is one of the world s leading manufacturers of home improvement and building products, as well as a leading provider of services that include installation of insulation and other building products. As of December 31, 2014, the Company had 63 manufacturing facilities and approximately 32,000 employees Sales: $8.5 Billion 7
8 Masco Strong Brands with Industry Leading Positions BUSINESS SEGMENT REVENUE 2014 % OF TOTAL LEADING POSITIONS Plumbing Products $3.3B 39% #1 worldwide in faucets, fittings, showerheads #1 in spas Decorative Architectural Products $2.0B 23% Leading DIY paint and stain provider Cabinets and Related Products $1.0B 12% Leading U.S. kitchen and bath cabinetry brands Installation and Other Services $1.5B 18% #1 insulation contractor for homebuilders Other Specialty Products $0.7B 8% #1 in vinyl windows in the western U.S. Total company $8.5B 100% 8 8
9 Polling Question How is your Procurement organization structured? Centralized Center-Led Decentralized 9 9
10 Strategic Focus O P P O R T U N I T I E S 1. Drive full potential of our core businesses 2. Leverage opportunities across our portfolio 3. Actively manage portfolio 10
11 HQ Global Supply Chain Objectives Ensure each BU s ability to Buy Best Be the process center of excellence Recognize and facilitate One Voice and Ultimate Authority opportunities Be at the forefront of recognizing emerging tools and trends Manage Real Productivity Projects in Indirect & Logistics spend Ensure Enterprise Compliance with Supply Chain regulatory requirements 11
12 Masco Global Supply Chain Organization Supply Chain Leadership Team BU Supply Chain Leaders Masco HQ Supply Chain Leaders Europe Supply Chain Lead Supply Chain Leadership Summits: Alignment Best Practices Performance vs. Goals VP, Masco Operating System Director, Global Supply Chain Services Director, Global Sourcing - Indirect Center of Excellence Masco Global Sourcing Process Spend Mgt Toolset Network Design SC Regulatory Compliance Real Productivity Projects Network Design Real Productivity Projects Indirect Logistics Subject Matter Expertise Indirect Logistics 12
13 Technology Deployment Goals for Masco Supply Chain Advance Supply Chain capabilities by leveraging technology as the enabler, through the support of a business partner Streamline fragmented business processes and systems to be aligned with overall procurement strategy Transition from current manual processes to higher levels of automation and efficiencies Enhance compliance & procurement results by leveraging a single technology platform Ensure complete adoption and ROI from the system 13
14 Polling Question What Spend Management modules have you deployed? Spend Analysis esourcing Integrated Upstream Suite (2+ modules) 14 14
15 Masco s Spend Management Technology Journey Spend Visibility esourcing Integrated Spend & esourcing Suite Fully Integrated Platform, Including Contracts and Suppliers 15
16 Selecting a Technology Services Partner Key requirements from the procurement partner Procurement Capabilities Resource Model Culture Proximity Technology Global presence and experience Strong transformation and change management experience Quality of resources Flexible and scalable resource model Blended model onshore, offshore and landed Strong program management Great cultural fit Value & results focused Relationship driven vs. contractual Proximity to Masco office with delivery centers in Shanghai, Prague and Mumbai Seamless communication across these offices Intuitive user interface to grow adoption Best-in-class full spend management suite (Contracts, Sourcing, Spend, Supplier) Native Mobility 16
17 Value Global Deployment Strategy Acquire Spend Management Technology Global Sourcing Playbook Global Training (Hands-on) Ongoing Support and Best-practice Sharing Establish HQ Support Team Develop Enable Sustain and Share Time 17
18 2014 Accomplishment Snapshot Together we rolled out 4 Products in the last year. SPEND $20B+ Enriched 30+ Source Systems Spend Dashboard Masco Standard Analytical Spend Reports SOURCING 100+ Events 11 Business Units Across North America, Europe, and Asia CONTRACT National Contracts Repository Implemented SUPPLIER Forms: Conflict Minerals, CTPAT, Approved Supplier Matrix Scorecards: Financial, Quality, OTD, Social Responsibility KPIs Profiles: Certifications, Manufacturing Capabilities 18
19 Realized Value of Integrated Suite by Masco BEFORE AdHoc RFP templates in various formats AFTER GEP PLATFORM IMPLEMENTATION Standard repeatable RFP process with content library, including NDA and T&C Quotes via XLS and Advanced online price sheets Manual scorecard creation and distribution Form distribution and collection via with manual status tracking UNSPSC-based taxonomy applied to spend data Spend reports created by Masco HQ Scorecard automation and online distribution improves accuracy Online form access and tracking reduces administrative burden Custom Masco taxonomy applied to spend to improve accuracy and usability Intuitive interface allows business units to create custom reports Inefficient quarterly spend enrichment cycle Spend enrichment cycle time cut to half Supplier profiles maintained at individual business units Supplier profiles shared and accessible across Masco Corporation 19
20 Program Success Enablers Leadership Commitment and Passion Strong Partner Integrated and Intuitive Technology Suite Organization Capability Tracking and Reporting 20
21 Key Success Factor: Strong Program Governance Annually Annual partnership review, business alignment, future opportunities, review of Masco and GEP business focus for the year 3h workshop Quarterly Face-to-Face steering committee reviews strategic alignment, capability improvement, customer satisfaction, change management 3h duration Monthly Project performance review, monthly reporting, customer satisfaction, review of GEP product roadmap 2h duration Weekly Resource utilization, risk management, change management, prioritization, upcoming activities 1hr call per product 21
22 What s Next? Identify opportunities for increasing user adoption Monitor and evaluate new features and technologies to drive additional value Facilitate refresher trainings and expand library of user guides and templates Deploy spreadable wins teach by example 22
23 Closing and Q&A 23
24 Thank You - Contact Information Brian Smith Director Global Supply Chain Services Brian_Smith@mascohq.com Ron Dreher Manager esourcing, Ronald_Dreher@mascohq.com Santosh Nair Vice President, GEP Technology Santosh.Nair@gep.com
25 Evaluation How-to: Why? Your feedback drives SIG Event content By signing and submitting your evaluation, you are automatically entered into a prize drawing How? Option 1: App 1. Select Schedule 2. Select Schedule by Day 3. Select Day 4. Select Session 5. Scroll to Description 6. Click on the Evaluation link Option 2: Browser 1. Go to 2. Select Workshop (#11) Complete and submit!
26 Workshop 11 Enabling Procurement Transformation and Maximizing Business Results through a Global Technology Platform Speakers: Masco Ronald Dreher ronald_dreher@mascohq.com Masco Brian Smith Brian_smith@mascohq.com GEP Santosh Nair Santosh.nair@gep.com bit.ly/downloadameliaapp Tweet using: #SIGspring15
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