a look back* - mypurchasingcenter.com · - ogsm 3.clear vision and mission 4.personal development -...

Roy Anderson

Executive Vice President

MetaProcure

[email protected]

M:. 978.857.3868

mailto:[email protected]

Confidential

A Look Back*

1983In 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

2

2013Sales 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

Confidential

Old Saying

If everyone around me is causing a

problem

3

Maybe it’s me

Is Procurement the problem?

Confidential

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?

Never!

I have to work

with

Procurement?

Presentation on Change

Management with Engineering

and Manufacturing

Confidential

Questions

Is it harder or easier to do business with Procurement involved?

Walk in the shoes of your Internal Customer

Is the RFX a positive or negative experience?

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?

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, 2012

Confidential

Where Did We Come From

Long

term

busin

ess p

lans

Decisio

n Poin

t

Supplie

r Risk

Manag

ement

Supplie

r Innova

tion

Supplie

r Manag

emen

t

Stra

tegi

c Sourc

ing

RFP Purchas

e Ord

er

Invo

ice

3 years 2.5 years 2 years 1.5 Years 1 year 180 days 90 days 30 days 30 days late

The transactional space

Confidential

Where are We Going

Long

term

busin

ess p

lans

Decisio

n Poin

t

Supplie

r Risk

Manag

ement

Supplie

r Innova

tion

Supplie

r Colla

boratio

n

Stra

tegi

c Sourc

ing

RFP Purchas

e Ord

er

Invo

ice

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

Confidential

Regional Board of Education

A discussion with the CIO, CPO and

Director of IT Sourcing

11

Confidential

Supplier Intelligence*

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

12

Confidential

Supplier Intelligence*

13

Building

Partnership


Confidential

Supplier View of Your Company

A lesson from a Sales Manager

Profits

Customers

Partnership, Drive innovation, Best people, ideas and practices

Loss

Grow or Eliminate

High

Worst

Low

Best

Sub Standard Profitability

Reduce Services

Fair and Reasonable Profits

Low cost customer, Innovation engine

Primed for growth

Partner to Drive TCO

Confidential

Leverage Strategy*

Match your strategy to your leverage

Supplier

Leverage

Buyer Leverage

PartnershipTrouble

NirvanaTransactional

Fast, low cost* Lamar Chesney Former CPO Delta Airlines

High

HighLow

Airline Example

- Airport

- Fuel

- Planes

- Engines

- Labor Union

Focus on moving your leverage to partnership

Drive Innovation

Confidential

Marketing Tactics*Awareness of SCM Strategic Value

16

Skills


Confidential

Roles

CEO

EPS growth

Top line growth

Profitability

Lower risk

Shareholder

Year over year share price growth

Dividends

17

Confidential

CPO to CEO, Delivering on Expectations

“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

Susan Avery, MyPurchasingCenter.com

Confidential

Roles

Supplier

Opportunity

Grow revenues

Long term relationship

Low cost customer

Profitable

Reference-able account

Build unique innovation partnerships

19

IS INNOVATION IN OUR GOALS?

Confidential

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

North America Senior Contacts Manager Major Consulting Firm

What do I get for that?

Confidential

Segment products and customers and develop individual

supply chain solutions for respective segments

22

“Game-changing” Supply Chain Ideas

Paul Dittmann, executive director of University of Tennessee’s Global Supply Chain Institute

http://www.supplymanagement.com/news/2013/10-supply-chain-trends-to-boost-shareholder-value/#sthash.FYgvQi40.dpuf

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

http://www.supplymanagement.com/news/2013/10-supply-chain-trends-to-boost-shareholder-value/sthash.FYgvQi40.dpuf

Confidential

Drive demand management

23




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


Confidential 24




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


Confidential 25

Simplify the process

Eliminate the valueless

Automate the mundane

SEA Change

Mind Sets that block change

Not made here

Winner takes all (eat your young concept)

Not in my job description

26

Moat Builders

Moat builders

27

Confidential

Transition is Grief Management

28

Confidential

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

Confidential

Common Language

ObjectivesLong term solution

GoalsDate and Number

Merit Review and Bonus

StrategiesSpecific actions that you take to meet the Objective

MeasuresMeasure the change

Reward the drivers

Give credit to everyone

30

Confidential

Change Enablers

1.Leadership Team


- Analytics

- OGSM

3.Clear Vision and Mission



Confidential

Trip to moon and safely back

Highway system

Rural electrification

Educational system K-12

32

Vision

Confidential

Wireless Laptop on the Beach in Maui

33

Confidential

Change Enablers

1.Leadership Team


- Analytics

- OGSM

3.Clear Vision and Mission

4.Personal Development- Organized internal and external training program

- Give them a place to go



Confidential

Change Enablers

5. Data and Information- Accurate, Complete

- Readily available, Actionable



Management by Embarrassment

Confidential 36

Build relationships with people you

can trust and they can trust you Ben Franklin

Confidential 37

Make friends before you need themSpeaker of the House Tip O’Neil

Confidential

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.

38

Follow the LeadersAT Kearney review of High Level of Procurement Performance

AT Kearney 2011 study on Excellence in Procurement, John Blascovich, Partner, New York

http://www.atkearney.com/procurement/2011-assessment-of-excellence-in-procurement-study-aep/reaserch/-

/asset_publisher/ljnP1Co3LW7d/content/follow-the-procurement-leaders/10192

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%

http://www.atkearney.com/procurement/2011-assessment-of-excellence-in-procurement-study-aep/reaserch/-/asset_publisher/ljnP1Co3LW7d/content/follow-the-procurement-leaders/10192

Confidential

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.

39






Confidential

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

40






Confidential

Procurement Imperatives

C-Suite seeks you out

Create, enable and develop innovation from the supply base

Radically improved Procurement skills embedded in the LOB

Understand end to end risk in the supply chain ecosystem

Fully utilize cloud based technology and supplier data integration

Focus on value creation that enables organizational success

Be a Change Agent

Confidential

Questions?

www.metaprocure.com

Roy Anderson

Executive Vice President

[email protected]

m. 978.857.3868

http://www.metaprocure.com/

mailto:[email protected]

a look back* - mypurchasingcenter.com · - ogsm 3.clear vision and mission 4.personal development -...

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