Capturing the Next Value Frontier of Value through Category Management

Transcription

1 Capturing the Next Value Frontier of Value through Category Management Kimberly-Clark Corporation Bill He VP of Global Procurement Strategic Sourcing GEP Binayak Shrestha VP, Consulting

2 SIG GLOBAL SUMMIT HUNTINGTON BEACH, CA CAPTURING NEXT VALUE FRONTIER THROUGH CATEGORY MANAGEMENT Presented By: Bill He Kimberly-Clark Corporation VP of Global Procurement Strategic Sourcing Leading the world in essentials for a better life.

3 Bill He VP, Global Procurement Strategic Sourcing More than 20 years expertise in building world-class sourcing organizations for major global companies and large-scale global procurement transformation programs Provides thought-leadership to K-C s Global Category Management CoE, with focus on business partnership, winning product solution, collaboration, continuous improvement and supplier innovation Knowledgeable in facilitating supply chain councils to pioneer best practices and policies across different operating structures and multiple continents Extensive strategic sourcing experience in financial services, telecommunications, automotive, utilities, natural resources, heavy manufacturing, media & high tech, e-commerce, CPG and pharmaceuticals.

4 Agenda Outline: TOPIC: CAPTURING NEXT VALUE FRONTIER THROUGH CATEGORY MANAGEMENT K-C Background & Roots in Innovation K-C Procurement Journey Next Value Frontiers for Procurement: Q&A Collaboration Innovation Winning product solution in core local markets

5 Kimberly-Clark Global Brands 42,000 employees worldwide $21.3 billion in Net Sales in 2014 Well-known global brands #1 or #2 position in more than 80 countries 1.3 billion consumers use our products daily

6 Global Procurement is Aligned to Support Our Businesses Personal Care Consumer Tissue K-C Professional

7 Innovation is at K-C s core Single Use Hand Towels Flushable Cleansing Cloths Huggies Little Swimmers Anti-Viral Tissues Touchless Tissue Dispenser

8 Watch Video

9 Watch Video

10 Our procurement journey More recently Next value frontier Traditionally Organization structure Defined categories Standardized processes Policies Strategic sourcing Compliance management Demand management Technology (Spend, erfx, P2P, etc.) Business Process Outsourcing Strategic Sourcing with Advanced toolkits Collaboration Innovation Winning product solution in each local market we decide to compete

11 Supplier collaboration is key source for growth and innovation Recent Procurement Leaders survey with 380 respondents In next 3 years, Supplier relationship management will out-deliver sourcing in generating savings - Hackett Group Source: Procurement leaders - CPO Planning guide 2016

12 So how can we make it happen? Shifting gears to enable Supplier innovation 1. Shift Mindset - Stop beating up and start opening up - Long term mindset, mutually beneficial relationships 2. Segment Suppliers - Robust SRM program, not based on spend but on strategic value - Target key suppliers (Tier 1) to accelerate revenue growth 3. Become customer of choice - Boost courage to partner to win with open innovation - Co-create the future 4. Execute plan - Top-2-Top collaboration/ Yellow pad sessions, Innovation Summits Develop communication portals, Recognize/Reward suppliers

13 Higher level of business partnership is imperative for leading procurement organizations CPO s engagement with the Enterprise 18% of CPOs listed their engagement with the enterprise as top collaborator Top Collaborator, 18% Significant Influencer, 25% Siloed, 2% Reactive, 25% Solid Supporter, 29% CPO Priorities 50% listed improved collaboration with business as # 1 CPO priority. 50% 45% 43% 32% 32% Source: CPO rising 2014 Convergence; Ardent Partners Improve collaboration with business Improve use of technology Improve collaboration with suppliers Optimize current systems and processes Implement stronger processes and policies

14 Promoting business partnership at K-C Actions Improved Outcomes TRAINING ALIGNMENT FOCUS ON GROWTH Functional and technical Quarterly business reviews, Annual Surveys Select SRM programs within Business, Regions Infused confidence & capabilities Influential & negotiation skills Joint Business Planning Process Ongoing collaboration to develop winning products in local markets Market Based Sourcing to Knowledge Based Sourcing Innovation Summits Commodity to Exclusivity At Enterprise Level

15 Innovation summits have helped to ignite collaboration Strategic Supplier Deep Dive Meetings Supplier Booth Exhibition Joint Meetings Business, R&E, Procurement, Suppliers See how suppliers can help you drive innovation INNOVATION summit Search for Solutions to a Challenge Discover Supplier Capabilities Learn about latest trends & technology

16 Open collaboration encourages greater accountability, which in turn fosters trust. Leading the world in essentials for a better life. Ron Garan, Astronaut

17 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 Session (#06) COMPLETE & SUBMIT EVAL

18 Session #6 Capturing the Next Value Frontier of Value through Category Management Kimberly-Clark Corporation Bill He GEP Binayak Shrestha Download the App: bit.ly/sigcaapp Tweet: #SIGfall15

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