Haldex: Taking the brakes off e-procurement October 2018, Mark Andrioli

Transcription

1 Haldex: Taking the brakes off e-procurement October 2018, Mark Andrioli

2 Headline summary of content: An introduction to Haldex eauction variants Example of a multi-stage negotiation design Small steps - The Haldex Journey so far. Q&A

3 Haldex vision A world of safer vehicles From engineer to fleet owner, manufacturer to truck driver, and the millions of people on the world s roads. To achieve this ambitious vision we need to harness the determination, energy and passion found in every corner of our company. 3

4 Haldex in numbers 2016 Sales, SEK Millions 4,374 Foundation Brake 55% SALES/ PRODUCT LINE Air Controls 45% Listed on Nasdaq Stockholm Exchange (HLDX) SALES/ REGION Europe 36% North America 51% Asian & Middle East 10% South America 3% Trucks SALES/ 23% CUSTOMER CATEGORY Aftermarket Trailers 32% 45% Haldex, founded in 1887, is headquartered in Sweden with presence in 19 countries for sales, development and manufacturing. EMPLOYEES/ REGION USA 22% Mexico 22% Sweden 13% China 10% Germany 8% Hungary 7% India 5% Brazil 4% France 3% UK 2% Others 2% 4

5 Headline summary of content: An introduction to Haldex eauction variants Example of a multi-stage negotiation design Small Steps - The Haldex Journey so far Q&A

6 Reminder: Types of eauction Other types: Sealed Bid Auction. Each bidder has a single opportunity to make their best offer. Brazilian Auction. The price is fixed, bidders compete on: Quantity Delivery time Quality/Grade (e.g. materials or type of finish) Content.

7 Headline summary of content: An introduction to Haldex eauction variants Example of a multi-stage negotiation design Small steps - The Haldex Journey so far.. Q&A

8 Hybrid or Multi-stage negotiation design There is no rule that says an e-auction or any mechanistic negotiation must be completed in one phase. This is particularly relevant if: The buyer doesn t know what the best market price could be The buyer doesn t understand how intense the potential competition could be The negotiation design requires flexibility Stakeholders require involvement

9 Multi-stage negotiation design The scenario: Incumbent is well entrenched GBP multi million & complex service Wide spread of Tender responses Backdoor conversations are taking place Further scope for cost reductions? Challenge: Stakeholder alignment Challenge: How to close the cost gap between the best and worst bidders? Challenge: How to demonstrate we had achieved best cost Challenge: How to engage all bidders? Bidders are not fully engaged

10 Pre-Requisite Do you homework Understand the marketplace and position the negotiation to ensure a competitive environment exists Remove constraints to competition. Pre-qualified bidders all are equally capable Equalise the playing field for suppliers Clear and achievable specification for all bidders Result lead to award: No chance for back room deals or back channel conversations

11 Multi-stage negotiation design Phase 1: Traditional Reverse Auction: Incumbent Starting bid Challenger 1 Starting bid Challenger 2 Starting bid Published qualification price to focus attention on highest bidders Clear rules expressed and understood Clear duration and extension rules.

12 2-stage Multi-stage negotiation design Phase 2: Dutch Auction: Time to allow Stakeholders to absorb result and agree 1 st offer Bidders have time to consider the result and prepare for phase 2 Motivator to achieve rank 1 from previous phase Clear bidding rules for suppliers consistently applied. Use of eauction ensures transparency and consistency

13 Headline summary of content: An introduction to Haldex eauction variants Example of a multi-stage negotiation design Small steps - The Haldex Journey so far Q&A

14 The Haldex esourcing Journey The future Supplier on-boarding tool Segmentation & Supplier relationship management tool Online Auction 2019 Seamless Integration with other systems (e.g. ERP) Transparent methodology to achieve the demonstrable best cost for each sourcing event Flexible approach to negotiation Library of RFQs and quotations accessible to all users Efficient communication Quick Quotes module. Onboarding suppliers Building experience internally & externally Evaluating efficiency benefits Business case Today Process compliance?????

15 Questions? Thank You!