About ADP. Fleet Profile. Fleet Size 1,550. Value. Results+ Quadrant

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2 EPIC

3 About ADP ADP is one of the largest providers of business processing and cloudbased solutions including payroll, talent management, human resource management, benefits administration and time and attendance

4 About ADP Fleet Profile Fleet Application Fleet Vehicles Sales & Service Sedans, Crossovers, Minivans Fleet Size 1,550 Fleet Reports To Results+ Quadrant Global Procurement Value

5 Challenge The ADP fleet office challenge - to make a significant TCO improvement while reducing CO 2 Initial State Vehicle Mix Reimbursement 4,000, leased vehicles 1,500 Internal Perception Belief that reimbursement is more cost effective than leasing Eco Strong global push toward improved CO 2 move towards the globally selfmandated maximum of 140 g/km! Driver Satisfaction Also a strong ADP value Driver Compliance Below expectations Maintenance, rental returns, premium fuel

6 Analysis & Planning ADP developed a swat team comprised of internal and external resources ADP Michael Bieger Sr. Director Global Procurement Anthony Ficetola Fleet Analyst William Forsythe Fleet Administrator Wheels Inc. Account Management Client Services Vehicle Operations Wasif Bokhari Global Procurement Analyst Julian Fernandes Fleet Analyst

7 Analysis & Planning Significant improvements require strong upfront analysis & planning Met every 2-4 weeks for 3 years Tracked ongoing performance Expense Variance & Cost Projection Performance Review Summary Replacement Planning Tool Selection Modeler Performance Review

8 Solution Thorough and well-thought out plan was presented to and approved by ADP management STRATEGY PLAN DETAILS RATIONALE Fleet Administration Product Selector Changes Early Turn Ins Move administrative part of compliance from ADP to Wheels Determined most fuel efficient and lowest TCO offering (that also met/ exceeded business needs) Tested cutting edge eco vehicles including MY12 Chevy Volts Added new vehicles beyond historical Malibu and Fusion Added Altima in MY13 Added Hybrids in MY14 Evaluated current fleet based upon fuel efficiency Flipped over 80% of fleet in last 2 model years Allowed ADP fleet team to focus on strategic initiatives and improve compliance (which improved cost) Introduced new vehicle choices to ensure driver satisfaction Close attention to TCO for choices Eco options improved CO2 Jump started goal of improving fuel economy & CO 2 Took advantage of strong resale market

9 -5.8 Cost per mile over 3 years -$2.3m Avoided spend compared to FY11 cost per mile -$440,000 Projected Avoided fuel costs FY metric tons Projected avoided CO2 FY14 (2,000 + since inception) -18% Rental days & -$40K rental spend -47% Out of network spend

10 Results In addition to improved metrics ADP had several other home runs! Gained approval to move additional vehicles from reimbursement to lease Great feedback Drivers loved choices! Numerous driver requests to move from reimbursement to lease Management recognition for spend reduction Green Fleet 2013 Sustainability All Star Award Fleet Financials cover story

11 Indirect Strategic Sourcing at Cox Communica2ons EPIC January 29, 2014

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13 Video Internet Voice

14 Soaring Demand No Cost Woes Li9le Compe22on

15 Housing Market Sank Increased Compe22on Margin Pressures

16 Centralize Transform Win

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18 MONDAY JULY 16, 2012 Transformed Supply Chain Saves Cox Over $100 Million It is July, 2012 and Cox s Supply Chain Transforma2onal effort has already saved the company over $100M including over $15M in The supply chain transforma2on also enabled the enterprise to further its mission of being the most trusted provider of communica2ons and entertainment services in r a n g e o f capabili2es including opera2ng model, category strategic planning, strategic sourcing, contract management, knowledge and competency development; and master data management. At its heart, supply chain s ini2a2ve built agility into the local markets to increase produc2vity and customer service. Supply chain achieved this by leveraging Cox s na2onal strength to drive more efficient use of capital, be9er and stronger supplier rela2onships, which enabled the markets and systems to realize higher levels of performance. This new Opera2ng model allows Cox the flexibility to support growth, manage complexity and meet the needs of their constantly evolving systems. Cox achieved sustainable excellence in cost and produc2vity through implemen2ng five Strategic Ini2a2ves in FY 2009: Strategic Sourcing & Supplier Rela1onship Management: Developed deep centrally led product, process, supplier, and market exper2se along with superior supplier management across all major categories of spend. This enabled Cox to America. George Richter, significantly improve their compe22ve posi2on Cox VP of Supply while providing top- quality, reliable, and cost- and his team, effec2ve solu2ons. Moreover, Cox established embarked on a collabora2ve supplier rela2onships enabling them transforma2onal to accelerate the introduc2on of innova2ve supply chain technologies and solu2ons. program which d e v e l o p e d a Reliable Service through Simplified & Accurate Processes & Systems: Implemented reliable, simple and consistent processes and fully- integrated systems that capture, manage and communicate accurate supply chain informa2on. Cox deployed a new planning system, contract management system, and isupplier to op2mize total cost of ownership. Flawless Execu1on of Opera1ons & Logis1cs: Provided world- class services to their internal and external customers through a focus on execu2on excellence. Key components of this service included ownership and management of inventory ensuring products got to the right place at the right 2me for the lowest total cost. To achieve this, Cox managed a network of internal warehouses and 3PL service providers. Best People: Developed Cox people, acquired and retained talented supply chain professionals with broad business perspec2ves. Cox improved stakeholder alignment and broadened collabora2on of supply chain with the business and its systems. Wireless: Built an integrated adaptable supply chain to support the successful launch of their new wireless business. Cox drove down their costs, enabled business growth, and enhanced their overall service quality. Addi2onally, Cox developed strategic rela2onships with its suppliers to help drive produc2vity and profitability in the systems. These efforts yielded $100M in year- over- year cost reduc2ons over a 3 year period, posi2oning Cox for future success.

19 Building the Cox Strategic Sourcing House

20 MONDAY DECEMBER 3, 2012 Transformed Supply Chain Saves Cox Over $300 Million It is December of 2012 and Cox s Supply Chain Transforma2on (SCT) effort has already delivered $320M in cost savings to the company, realizing over $30M in 2009, the first year of the program. Addi2onally, the SCT program has further enabled the enterprise to progress in its mission of being the most trusted provider of communica2ons and entertainment services in America and in delivering life s most important connec2ons. In 2008, George Richter, Cox VP of Supply Chain, and his team embarked on a journey to transform Cox s supply chain which began with a Strategic Sourcing and Organiza2onal Enablement program and over the past four years has expanded across Cox s full supply chain and its various geographies. In that 2me, Cox Supply Chain has aligned upon a mission statement where they are Accountable for leading supply chain capabili2es that enable quality, value and diversity through: Accurate Planning; Compe22ve Sourcing; and Reliable Delivery. Strategic Sourcing & Supplier Management: The strategic sourcing organiza2on has developed deep, central- led product, process, supplier and market exper2se along with superior cost management across most major categories of spend. This has enabled Cox to differen2ate itself from the compe22on and provide the business with top- quality, reliable and cost- effec2ve solu2ons and services. Moreover, the team has leveraged and gained access to innova2on from their supply base to deliver total value, iden2fy new opportuni2es and op2mize the current business through strategic partnerships with several of its largest and most trusted supplier partners. This tremendous progress resulted in Cox supply chain being recognized in 2011 with the Cox Vision Award for Impact specifically for its work in Strategic Vendor Management. Accurate Planning through Simplified Processes & Systems: Supply chain implemented reliable, simple and consistent processes which support the complexity of consumer needs in the communica2ons industry. The key components of this progress included segmented support of different business units with improved planning capabili2es and customer facing metrics for improved material availability and responsiveness to customer needs. For the CPE business segment specifically, the team developed improved repor2ng, providing real- 2me inventory status across the network, which has yielded more accurate forecas2ng & a reduc2on in idle assets. The Investment Recovery capability was fully launched, aligning the team by product type & manufacturers to take advantage of economies of scale; in FY2012, Investment Recovery recovered over $4M, and plan on growing the capability in the years to come. Reliable Execu1on of Opera1ons & Logis1cs: Another key pillar of SCM s success has been its ability to provide world- class, reliable and consistent fulfillment services to internal and external customers through a strong focus on execu2ng delivery. The team now supports the management of mul2ple channels, including direct fulfillment, residen2al technician installs, and Cox Business to allow for seamless support of business growth and adap2on to changing customer needs. Several key components of this service include a CPE tes2ng, refurbishment, and repair opera2on designed to ensure quality products in the customer premises, as well as a strong integra2on with the Product team to ensure lifecycle decision are seamlessly interwoven with opera2onal decisions. Many of these capabili2es are made possible through Cox s strategic and con2nually developing rela2onship with its 3PL provider, Communica2ons Test Design, Inc. (CTDI) Best People: During this 2me, the supply chain organiza2on has had tremendous success in both developing Cox people and growing the organiza2on through acquiring/retaining talented supply chain professionals with broad business perspec2ves. The SCM organiza2on has grown to over 100 skilled resources across Atlanta Center and at field loca2ons to serve the business and its internal customers. In summary, Cox has driven down costs in a manner that enabled the business's ability to grow, while enhancing overall quality and reliability. Through a dedica2on to Cox financials and enhancing Free Cash Flow (FCF), Cox supply chain has enabled the organiza2on to drive compe22ve advantage and value through strategic purchasing and supply chain integra2on. In addi2on to realized benefits, this effort resulted in over $70 million in impact to Cox s 2011 & 2012 long range plan and is targe2ng to deliver close to $200M of FCF benefit from , far in excess of its original target..

21 World Class Prac2ces Year of the Contract Know Thy Vendor Breaking Bad Habits Show Me the Money

22 Value Defined Value Sustained LRP Integration Value Identified Value Realized

23 Execu1ve Update Five Year Value Summary In 2013 we exceeded $436M in value realized since Inception and $145M in LRP benefit since Total CCI All Other Affiliates 2 CCI All Other Affiliates 2 CCI 1 All Other Affiliates 2 CCI 1 All Other Affiliates 2 Value Identified Value Realized LRP 4 (Net) $97.5M $87.7M $113.7M $32.1M $111.7M $20.4M $144.7M $4.3M $555.3M $56.8M $31.0M $84.7M $98.7M NA 3 $106.6M NA 3 $116.5M NA 3 $436.9M NA 3 NA 3 NA 3 $24.3M NA 3 $45.4M NA 3 $76M NA 3 $145.7M NA 3 Key Insights Value Identified contributed to CCI remained above $100M from 2011 through YTD 2013 The ratio of sourcing value realized savings integrated into the LRP has increased from 25% to 52% in 2012 and is tracking to over 60% in numbers reflect actuals as of 8/05/2013 SST data and includes Buyer savings 2 All other affiliates includes savings from Manheim, CEI, Autotrader and CMG 3 Value realized & LRP currently not tracked for affiliate companies (data/processes) 4 Net LRP of Sourcing and Operations savings events

24 MONDAY DECEMBER 12, 2016 Cox Supply Chain Enables Business for Top Line Growth & Operational Efficiency It is December of 2016 and Cox s Supply Chain organiza2on has con2nued to build upon the success of its Supply Chain Transforma2on efforts of In addi2on to delivering upon its targets for Free Cash Flow (FCF) improvement from of $200M, the Supply Chain team has fully dedicated itself to Cox s corporate goals for driving opera2onal efficiency and realizing Opera2ng Cash Flow (OCF) improvements within Cox s long range plan. While con2nuing to enhance its capabili2es in sourcing, planning and logis2cs execu2on, the Supply Chain organiza2on has managed the enterprise- wide pipeline of Opera2onal Efficiency ini2a2ves while contribu2ng over $100M in OpEx improvements to Cox s $300M goal across While these financial improvements are core to securing Cox s long term compe22veness in the cable industry, Cox s supply chain organiza2on has con2nued to dedicate itself to con2nuous improvement and in leading best- in- class capabili2es within Cox and across the communica2ons industry in the areas of strategic sourcing, inventory planning and supply chain opera2ons/ logis2cs. In 2012, George Richter, Cox VP of Supply Chain, and his execu2ve team made up of Bill Mangen (ED of Strategic Sourcing), Linda King (ED of Planning) and William Cossey (ED of Logis2cs) set goals for themselves to con2nually deliver upon SCM s contribu2on to Cox s financial success while also pushing the envelope of supply chain strategy and execu2on. These goals hold true to Cox supply chain s mission statement both to internal customers and to industry peers alike. To remain: Accountable for leading supply chain capabili2es that enable quality, value and diversity through: Accurate Planning; Compe22ve Sourcing; and Reliable Delivery. Strategic Sourcing & Strategic Vendor Management: Much of Cox SCM s contribu2on to OCF during was driven through applying sharpened processes and exper2se in strategic sourcing to areas of Cox OpEx that had not been addressed in past sourcing efforts. Success in these endeavours required a broad understanding of Cox business, exper2se in the categories delivered and a dedica2on to implementa2on and change management to ensure the seamless execu2on of Cox s business strategy while reducing the enterprises overall cost to serve its customers. Moreover, the sourcing team has furthered the standardiza2on and automa2on of its contract management and repor2ng tools while also launching a robust Strategic Vendor Management program which clearly segments and priori2zes ac2vi2es with all vendors and makes concerted efforts to focus 2me and effort on Cox s most strategic spend and with its most trusted suppliers. Accurate Planning and Vendor Process Integra1on: The Cox Supply Chain Planning organiza2on remained focused on con2nuous improvement of processes and material visibility to be9er serve the customer base while expanding capabili2es to include vendor integra2on. Driven by a focus on improving customer experience and exceeding expecta2ons, material availability and stocking strategies remained a top priority. Through vendor integra2on, Cox electronically integrated with top vendors to automate the vendor order processes, which improved the reliability of material on order and increased planner efficiency. Building upon the establishment of vendor integra2on, further repor2ng capabili2es were established, allowing accurate informa2on to be readily available to both the internal Supply Chain organiza2on as well as customers across the company. One Supply Chain for Reliable Opera1ons & Logis1cs: Over the past several years, Cox Supply Chain has implemented key strategic ac2ons with a focus on One Supply Chain that con2nually drives value through greater alignment and efficiencies across the na2onal footprint. Logis2cs services have improved effec2veness of delivery through con2nued partnerships with strategic vendors and improved alignment between Atlanta Center SCM and field- led planning and fulfillment ini2a2ves. CPE quality con2nues to show improvement through maturing tes2ng and refurbishment opera2ons provided by CTDI as well as strong integra2on with new product launches and updated tes2ng procedures from CPE vendors. The Cox Supply Chain organiza2on has evolved over the past eight years from a largely tac2cal func2on within the business, to a leader within the industry in terms of innova2on, process excellence and results delivered. The organiza2on has become an indispensable arm to the company s opera2onal capabili2es and strives each year to ensure that Cox is outperforming its peers and that it realizes a dis2nct compe22ve advantage from an opera2ons and opera2ng cash flow perspec2ve. In 2016, Cox Supply Chain con2nues to play an absolutely cri2cal role in ensuring a level of opera2onal efficiency and cost management that allows the enterprise to invest in next genera2on technologies, release innova2ve products and deliver an unmatched customer experience that will dis2nguish Cox from its compe2tors and secure its market share well into the future as the most trusted provider of communica2ons and entertainment services in America.

25 Molina Procurement Services Bryce Berg Vice President

26 Molina Snapshot 1.9 million members 8,000 Employees - $6.5 B Revenue

27 Procure to Pay Evolu1on Business Drivers In 2010, CAO decided that there were opportuni2es for efficiencies and cost savings by inves2ng in a more sophis2cated procurement organiza2on Needed to manage explosive growth within the company that was outstripping infrastructure Deploy an ERP system with a procurement module where all purchases could be captured and where spend data could be analyzed Implement a business process framework to improve compliance and drive efficiencies

28 Procure to Pay Evolu1on 2010 Assessment and Planning Purchasing was an order placement organiza2on Paper based requisi2oning No PO System Orders tracked in Excel Procurement was viewed as a bo9leneck in the department s processes Approximately 20% - 30% of spend under management

29 Procure to Pay Evolu1on 2011 Making the Right Moves Deployed an ERP system Electronic rou2ng Had a single system to manage business processes Uniformity across financials Issues Remained Complicated User Interface Requestors circumvented the system by processing manual check requests Lack of visibility of procurement requisi2ons and invoices Procure to Order process

30 Procure to 5 Cri1cal Pay Evolu1on Factors Procure to Pay 1. Simple; on- line shopping look and feel; logical user interface to submit purchase requisi1ons 2. Eliminate dual entry/approval of Purchase orders 3. Develop a customizable workflow where Procurement can own the process 4. Implement one con1nuous process from req to check. Procure to pay func1onality 5. Provide spend visibility across the enterprise

31 Procure to Pay Evolu1on 2012 Deployment and Execu2on Deployed Coupa in May % Compliance within 3 months of deployment Gained visibility on company spend Customized workflow to meet business needs within Procurement s domain Spend under management approximately 70%

32 Procure to Pay Evolu1on Accomplishments Successfully processed over 140,000 purchase orders and over 120,000 invoices Brought under management 90% $350 Million of indirect spend Buyers are managing suppliers and not orders AP processes 40% more invoices with fewer staff, 10 remote AP clerks reassigned Improved spend visibility and audit compliance During the past 3 years the procurement efforts have saved the company over $31 Million

33 Procure to Pay Evolu1on Expanding Influence of Procurement Procurement Procure to Pay Procurement Services Corporate Administra2on Ø Accounts Payable Ø Business Con2nuity Ø Provider Payments Ø Temporary Staffing Ø Payroll Ø Compensa2on and Benefits Ø HR Administra2on Process & Systems

34 Procure to Pay Evolu1on Looking Towards the Future Expand Supply Chain Management Methodology Process Improvements Taking steps out of the process Data mining for spend reduc2on opportuni2es It s a Journey, not a des2na2on

35 Epic awards presentation Kjell-Åke Eriksson Vice President Indirect Purchasing Chris Sandford Director Strategy, Quality & Project Office at IDP Volvo Car Group 35

36 Indirect procurement manage a 25 BSEK ($3,8 Billion) global spend yearly, managing suppliers with 105 buyers globally N.B. Not complete data Comment Indirect spend some 25 BSEK 2013 Main categories are Logistics & Marketing that represent some 40% of total spend PO s are placed yearly Fragmented supplier base with more than 9000 suppliers Organisation consists of 71 procurement professionals in Europe, 34 in China 36

37 As part of the corporate turnaround program, Indirect purchasing got a challenging cost reduction target Volvo Cars Vision & Strategy Volvo Cars Business Plan Comments Purchasing strategy Purchasing Vision Purchasing Targets & KPI s Heavy investments for replacing the vehicle portfolio Target to get back in black Volvo Cars corporate business goals are broken down and distributed within purchasing Indirect Purchasing received an 8BSEK ($1,3B) savings target accumulated over 5 years (start 2012) Purchasing Framework As-Is & To-Be Transformation Time plan 37

38 The Challenge Indirect Purchasing in Volvo Cars was a static organisation with cumbersome and beaurocratical processes, lack of fact based negotiation and an old sourcing mindset where "suppliers need to share our pain and give us savings We knew that our current processes, organisation, competence and overall set-up would not deliver the goals set so we systematically needed to address our weaker areas. 38

39 We based Our strategic direction on the following 4 areas in order to become A dynamic, industry leading Indirect procurement operation Revitalize the IDP organization through developed and improved processes, tools and capabilities Reinforce our presence by understanding our stakeholders needs, focusing on the total value chain and understanding the latest business trends and innovations Capture the opportunities by using the tools, capabilities and sourcing potential leveraging insider access in China and on Overseas markets Secure that IDP becomes best in class with the best people, processes, tools and organisation providing the best value for Volvo Car Group Indirect Purchasing A dynamic, industry leading procurement operation 39

40 The initial steps included a new strategic sourcing process, competence development and a heavy focus on stakeholder relationships Processes Competence Processes A weekly SCM (supplier choice meeting) was introduced where every buyer/stakeholder had to present their sourcing cases to the IDP management team using the methodology. A new sourcing process/methodology called "7 Step Strategic sourcing" was implemented which secured that the buyers used the correct tools and structure to source projects. Competence - we secured that our buyers went on training courses (fact based training, clean sheet training, low cost sourcing training, 7 step Strategic sourcing, etc.) to increase the knowledge base in our organisation. Stakeholders Finance Stakeholders - we set-up regular stakeholder meetings and got their trust by highlighting in a systematic way, how we could save their money and add value to their areas. Finance - we set-up monthly meetings with the various unit controllers to "hand back" the money we had saved them thus securing that all savings were either re-invested in the company or written off the bottom line of the books. 40

41 In 2013 we greatly over achieved and delivered more than $300 million in savings from indirect purchasing Last year we had focus on two things: cost control and the China market. This has been sucessfull. Håkan Samuelsson, CEO Volvo Car Group, Detroit Motor Show, Jan 2014 Ultimately, everything we do is to save money and add value for Volvo Cars. All savings are tracked in our Purchasing system and signed off by finance. Its not just about the monetary value, but the processes we have implemented to secure the savings, the new knowledge and competence of the buyers to know how to strategically source, to run analytics and fact based data and too look for new trends, techniques and innovations and to involve our business partners (suppliers) and actively encourage them to bring their experience and expertise to the table. All these values and benefits are delivered from Indirect Purchasing. Our result is that we have greatly over achieved and delivered more than $300 million in savings... Source: 41

42 The journey has started to Become the best indirect purchasing organisation Become nimble & faster in serving stakeholder purchasing needs Realize opportunities better and faster and thereby add value to Volvo Cars Increase focus on strategic purchasing reduce time spent on transactional procurement Create one clear highly professional interface towards the supplier base 42

43 .Thanks for your attention

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