cpo event - emmanuel cambresy, supplier collaboration & innovation ... is not an either-or...
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Supplier Collaboration & Innovation ...... is not an either-or proposition *
Emmanuel Cambresy – Global SP&I ManagerJune 18, 2015
* Source: Kate Vitasek, Forbes – January 2015
Novartis is a global healthcare company based in Basel, Switzerland, with roots dating back more than 150 years. We provide healthcare solutions that address the evolving needs of patients and societies worldwide.
Novartis products are available in more than 180 countries worldwide. Our products reached more than 1 billion people globally in 2014. About 133 000 people of 150 nationalities work at Novartis around the world.
NovartisWho we are
Our approach for sustainable growth
| NBS | SP&I | Supplier Collaboration & Innovation | June 2015 | Business Use Only | Not for distribution2
NovartisA world-leading healthcare company
2014 USD billion
Net sales: 58.0
Net income: 10.3
R&D investment: 9.9
Key figures
Leading market position
One of 25 largest companies by market capitalization
Among most respected companies globally
Sales by region 2014
Canada/Latin America
US
EuropeAsia/Africa/Australasia
37%
32%
21%
10%
| NBS | SP&I | Supplier Collaboration & Innovation | June 2015 | Business Use Only | Not for distribution3
NovartisA historic shift in our strategy
Novartis Business Services (NBS)Integrated Solutions that Matter
#2 generic medicinecompany worldwide
# 3 pharmaceuticalscompany worldwide
Novartis Pharmaceuticals
#1 eye carecompany worldwide
Alcon Sandoz
| NBS | SP&I | Supplier Collaboration & Innovation | June 2015 | Business Use Only | Not for distribution4
Supplier Performance & InnovationVision & Mission
| NBS | SP&I | Supplier Collaboration & Innovation | June 2015 | Business Use Only | Not for distribution5
Vision Within Novartis Business Services, SP&I aims to be recognized as a thought-leading
organization in the areas of supplier excellence, continuous improvement and business transformation through outstanding supplier relationships and unique insights on how Novartis can deliver innovative solutions to help customers.
Mission Support local, regional and global sourcing organizations, strategic supplier teams and key
stakeholders to successfully complete joint transformation that will deliver Total Business Value through increased customer satisfaction, additional productivity, new capabilities, industry recognition, capital efficiencies and measurable enhancements to business processes.
The SP&I Value ChainAn end-to-end value creation system
| NBS | SP&I | Supplier Collaboration & Innovation | June 2015 | Business Use Only | Not for distribution6
Supplier Segmentation1
Culture & Mindset
Governance & Sponsorship
Tier 1Identification
Strategic Account Management2
SharedVision
PerformanceManagement
TransformationManagement
SP&I Value Chain
* measured at the service delivery point (i.e. country, site, plant, distribution center, division...
Vision & Strategy3
SupplierCorporate Strategy
Voice OfThe Customers
Growth ◄Productivity ◄
Innovation ◄
Shareholders ◄Stakeholders ◄
End-Customers ◄
NovartisBusiness Strategy
Local SupplierPerformance Inputs
Operational◄Relational◄
Transformational◄
Supplier Performance *4
CountryOrganizations
Joint Project Execution7
PerformanceImprovements
► Do what we do better
► Exceed targets
ProcessImprovements
BreakthroughProjects ► Change what we do
Value Management **8
Productivity
Value Sourcing
Process Demand
IncreasedBenefits
DecreasedRisks
DecreasedCosts
IncreasedOpportunities
ValueSharing
InvestmentManagement
Innovation Management6
Portfolio Management
StrategicDirection
► Priority
► Intent
Ideas &Opportunities
Innovation Factory◄Supplier Innodays◄
iVillage◄
IdeationEvents
SocialInnovation
Crowdsourcing◄Crowdfunding◄Communities◄
TotalQuality
LEAN◄Value engineering◄
Six Sigma◄
Creativity & Ideation5
** Source: “Getting to We”, by Jeanette Nyden, Kate Vitasek and David Frydlinger.e
SP&I StrategicInputs
Strategic AccountManagement
SP&I StrategicOutputs
Global Account ManagementFive key features
| NBS | SP&I | Supplier Collaboration & Innovation | June 2015 | Business Use Only | Not for distribution7
What is needed for successful Account Management?
Culture &Mindset1 ... in order to create a favorable and collaborative partnership climate through
clearly defined Values & Principles, supported by the right Behaviors.
SharedVision2 ... in order to build perspectives and allow both parties to focus and align on jointly
agreed Strategic Objectives that will drive partnership focus areas.
Governance& Sponsorship3 ... in order to engage key stakeholders, receive executive sponsorship, obtain
commitment from all associates involved and maintain continuity of resources..
PerformanceManagement4 ... in order to monitor operational excellence against agreed targets, assess the
overall performance of the partnership, proactively bridge gaps and solve issues.
TransformationManagement5 ... in order to document the process used to transform ideas into business value,
clarify the way value is recognized by both parties and how value gets shared.
Who owns Account Management? Account Management is co-owned by all functions involved at every stage of the partnership lifecycle,
which act as permanent or ad-hoc members of the T1 Account Governance Board, including:
SUPPLIERNOVARTIS
CatMan
SP&I
Operations
QA
Legal
Finance
Sales & KAM
Solutions
Operations
QA
Legal
Finance
Program developed in conjunction with University of Tennessee. © Vested Outsourcing, Inc. Used with License.
Global Account Management“Getting to We ®”
| NBS | SP&I | Supplier Collaboration & Innovation | June 2015 | Business Use Only | Not for distribution8
Culture &Mindset
Governance& Sponsorship
PerformanceManagement
TransformationManagement
SharedVision
1
2
3
4
5
The GAMP embeds the “Getting to We®” process into the Global Account Management process with the goal to lay a strong foundation for Novartis Tier 1 strategic supplier relationships.
Program developed in conjunction with University of Tennessee. © Vested Outsourcing, Inc. Used with License.
Global Account ManagementWhy does every feature count?
| NBS | SP&I | Supplier Collaboration & Innovation | June 2015 | Business Use Only | Not for distribution9
ConfusionLack of
alignment
MyopiaLack of
perspectives
AbsenteeismLack of
ownership
ComplacenceLack of
oversight
FrustrationLack of
innovation
SharedVision
Governance & Sponsorship
PerformanceManagement
TransformationManagement =
Culture& Mindset
Governance & Sponsorship
PerformanceManagement
TransformationManagement =
Culture& Mindset
SharedVision
PerformanceManagement
TransformationManagement =
Culture& Mindset
SharedVision
Governance & Sponsorship
TransformationManagement =
Culture& Mindset
SharedVision
Governance & Sponsorship
PerformanceManagement =
Culture& Mindset
SharedVision
Governance & Sponsorship
PerformanceManagement
Drive ChangePartner
& Succeed =Transformation
Management
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