Roy Anderson Executive Vice President MetaProcure M:

Transcription

1 Roy Anderson Executive Vice President MetaProcure M:

2 A Look Back* 1983 In a Harvard Business Review article, Peter Kralijc called for the procurement function to take on a larger and more strategic role in managing the supply chain 2013 Sales people in most large companies are being trained to actually bypass procurement in their customer companies What is wrong with those sales people? *blog by Remko van Hoek 9:00 AM August 2, 2013 Remko van Hoek is the Global Procurement Director at PricewaterhouseCoopers and is based in the Netherlands 2

3 Old Saying If everyone around me is causing a problem Maybe it s me 3

4 Is Procurement the problem?

5 Questions Is it harder or easier to do business with Procurement involved? Walk in the shoes of your Internal Customer Do the internal customers Avoid us or Seek us out? Do our goals promote collaboration and partnership? Are we integrated or segregated from our partners?

6 Presentation on Change Management with Engineering and Manufacturing I have to work with Procurement? Never!

7 Questions Is it harder or easier to do business with Procurement involved? Walk in the shoes of your Internal Customer Do the internal customers Avoid us or Seek us out? Do our goals promote collaboration and partnership? Are we integrated or segregated from our partners? Is the RFX a positive or negative experience? Work with your supplier to answer an RFP Do the questions make sense Does it match what they are hearing from their end customer

8 The Modern Chief Procurement Officer Patrice N. Knight VP IBM Corporation November 13,

9 Where Did We Come From Long term business plans Decision Point Supplier Risk Management Supplier Innovation Supplier Management Strategic Sourcing RFP Purchase Order Invoice 3 years 2.5 years 2 years 1.5 Years 1 year 180 days 90 days 30 days 30 days late The transactional space

10 Where are We Going Decision Point Long term business plans Supplier Risk Management Supplier Innovation Supplier Collaboration Strategic Sourcing RFP Purchase Order Invoice 3 years 2.5 years 2 years 1.5 Years 1 year 180 days 90 days 30 days 30 days late The next generation partner The transactional space

11 Regional Board of Education A discussion with the CIO, CPO and Director of IT Sourcing 11

12 Supplier Intelligence* *Remko van Hoek is the Global Procurement Director at PricewaterhouseCoopers and is based in the Netherlands 12

13 Supplier Intelligence* Building Partnership *Remko van Hoek is the Global Procurement Director at PricewaterhouseCoopers and is based in the Netherlands 13

14 Supplier View of Your Company A lesson from a Sales Manager High Partnership, Drive innovation, Best people, ideas and practices Profits Fair and Reasonable Profits Low cost customer, Innovation engine Primed for growth Partner to Drive TCO Sub Standard Profitability Reduce Services Low Best Customers Worst Loss Grow or Eliminate

15 Leverage Strategy* Match your strategy to your leverage Focus on moving your leverage to partnership High Trouble Partnership Supplier Leverage Airline Example - Airport - Fuel - Planes - Engines - Labor Union Low Transactional Fast, low cost Buyer Leverage Nirvana Drive Innovation High * Lamar Chesney Former CPO Delta Airlines

16 Marketing Tactics* Awareness of SCM Strategic Value Skills *Remko van Hoek is the Global Procurement Director at PricewaterhouseCoopers and is based in the Netherlands 16

17 Roles CEO EPS growth Top line growth Profitability Lower risk Shareholder Year over year share price growth Dividends 17

18 CPO to CEO, Delivering on Expectations Susan Avery, MyPurchasingCenter.com There is no other single function that has such a broad spectrum of impact than supply management, Robert A. Rudzki, President of Greybeard Advisors 18

19 Roles Supplier Opportunity Grow revenues Long term relationship Low cost customer Profitable Reference-able account Build unique innovation partnerships 19

20 IS INNOVATION IN OUR GOALS?

21 Innovation Sharing You re asking me to innovate and then you re going to turn around add the idea to the RFP and share my innovation with everybody What do I get for that? North America Senior Contacts Manager Major Consulting Firm

22 Game-changing Supply Chain Ideas Segment products and customers and develop individual supply chain solutions for respective segments Collaborative partnership with suppliers to increase revenue Build a documented multi-year supply chain strategy (The report claims that only 16 per cent of firms have one) Integrate processes and eliminate silos Clear metrics to drive performance measurement Share, link and interpret big data using analytics tools Paul Dittmann, executive director of University of Tennessee s Global Supply Chain Institute 22

23 Game-changing Supply Chain Ideas Drive demand management Focus on talent management Critical competencies to be able to hire top supply chain talent Global orientation, leadership, business skills and technical savvy Deliver outstanding and innovative goods and services, drive supply chain excellence, create shareholder value Paul Dittmann, executive director of University of Tennessee s Global Supply Chain Institute 23

24 Game-changing Supply Chain Ideas A fundamental characteristic of a great supply chain is for an organization to stick to its core competencies and outsource the rest to world-class service providers Paul Dittmann, executive director of University of Tennessee s Global Supply Chain Institute 24

25 SEA Change Simplify the process Eliminate the valueless Automate the mundane 25

26 Mind Sets that block change Not made here Winner takes all (eat your young concept) Not in my job description 26

27 Moat Builders Moat builders 27

28 Transition is Grief Management 28

29 Change Enablers 1. Leadership Team 2. Organization /Infrastructure - Category expertise - Analytics - OGSM *Sourcing Interest Group (SIG) Procurement Transformation on the Fast Track: Doing More with Less, February, 2010 Denali Group John Evans Managing Partner, Alpar Kamber Partner

30 Common Language Objectives Long term solution Goals Date and Number Merit Review and Bonus Strategies Specific actions that you take to meet the Objective Measures Measure the change Reward the drivers Give credit to everyone 30

31 Change Enablers 1. Leadership Team 2. Organization /Infrastructure - Category expertise - Analytics - OGSM 3. Clear Vision and Mission *Sourcing Interest Group (SIG) Procurement Transformation on the Fast Track: Doing More with Less, February, 2010 Denali Group John Evans Managing Partner, Alpar Kamber Partner

32 Vision Trip to moon and safely back Highway system Rural electrification Educational system K-12 32

33 Wireless Laptop on the Beach in Maui 33

34 Change Enablers 1. Leadership Team 2. Organization /Infrastructure - Category expertise - Analytics - OGSM 3. Clear Vision and Mission 4. Personal Development - Organized internal and external training program - Give them a place to go *Sourcing Interest Group (SIG) Procurement Transformation on the Fast Track: Doing More with Less, February, 2010 Denali Group John Evans Managing Partner, Alpar Kamber Partner

35 Change Enablers 5. Data and Information - Accurate, Complete - Readily available, Actionable Management by Embarrassment *Sourcing Interest Group (SIG) Procurement Transformation on the Fast Track: Doing More with Less, February, 2010 Denali Group John Evans Managing Partner, Alpar Kamber Partner

36 Build relationships with people you can trust and they can trust you Ben Franklin 36

37 Make friends before you need them Speaker of the House Tip O Neil 37

38 Follow the Leaders AT Kearney review of High Level of Procurement Performance Align with the business Procurement strategy must align with overall business goals Contribute to the top and bottom lines Manage risk systematically The majority use risk-impact analysis, financial risk management (such as hedging), and disaster planning as ways to protect against unforeseen threats. Tailor category strategies Leading procurement organizations use more advanced toolkits while more complex categories will require closer collaboration or even the pursuit of joint advantage with suppliers. Best in Class Others Sourcing 80% 32% Cost savings 11.80% 3.20% Align with Business 85% 37% Impact on Spend 94% 71% Risk Management 80% 20% Standardized Data 75% 45% Spend Visibility 85% 33% AT Kearney 2011 study on Excellence in Procurement, John Blascovich, Partner, New York /asset_publisher/ljnp1co3lw7d/content/follow-the-procurement-leaders/

39 Follow the Leaders AT Kearney review of High Level of Procurement Performance Use supplier relationship management consistently A structured process drives strategic value by pointing to improvements in innovation and growth, better managed risk, and vastly improved supply chains Adopt technology The leaders have more control over what they spend because they have technology that allows for more visibility into spending. In addition, most leaders are fully automated with real-time access to data and are miles ahead in adopting the kinds of technology needed to support contact management and compliance. AT Kearney 2011 study on Excellence in Procurement, John Blascovich, Partner, New York /asset_publisher/ljnp1co3lw7d/content/follow-the-procurement-leaders/

40 Follow the Leaders AT Kearney review of High Level of Procurement Performance Win the war for talent All 13 firms are at least three times more forward looking and bold in their approaches to recruiting and retaining top talent. Most have sophisticated recruiting strategies, including establishing relationships with universities that offer leading supply chains programs and using summer internship programs. And they are more systematic in managing a more diverse and dispersed work force using online collaboration technologies and offering part-time work and flexible hours AT Kearney 2011 study on Excellence in Procurement, John Blascovich, Partner, New York /asset_publisher/ljnp1co3lw7d/content/follow-the-procurement-leaders/

41 Procurement Imperatives C-Suite seeks you out Focus on value creation that enables organizational success Create, enable and develop innovation from the supply base Radically improved Procurement skills embedded in the LOB Be a Change Agent Understand end to end risk in the supply chain ecosystem Fully utilize cloud based technology and supplier data integration

42 Questions?

43 Roy Anderson Executive Vice President m