breaking the buyer-vendor paradigm with supplier advisory...
TRANSCRIPT
Breaking the Buyer-Vendor
Paradigm with Supplier Advisory
CouncilsHarvard Maintenance
John RavarisExecutive Vice President
JLL
Denver ClarkCPO
Jason LinnSVP, Strategic Sourcing
sig.org/eval
Supplier Advisory Councils
Breaking the Buyer - Vendor Paradigm
Jason Linn
SVP, Strategic Sourcing - JLL
John Ravaris
EVP – Harvard Maintenance
Denver Clark
CPO - JLL
October 2016
Opening
Month 00, 2014 3
Breaking the Buyer – Vendor Paradigm with Supplier Advisory Councils
Formal
Reviews
TIER 1
TIER 2
TIER 3
Performance
Measurement
Segmentation
Strategic
Alignment
JLL Overview
• Financial & Professional services firm specializing in commercial real estate services
• Fortune 500
• LinkedIn Top 40 Attractor Company*
• a World’s Most Ethical Company*
• Pioneer in Facility industry strategic supplier councils
Highlights
Global platform serves corporate clients worldwide
• Facility & Property Management
• Agency Leasing
• Transaction Advisory Services
• Tenant Representation
• Project and Development Services
• Energy and Sustainability
• Construction
• Investment Sales & Management
2015 revenue
$5.2B
Employees
60,000
Managed Portfolio
4.0 B Sq. Ft
Corporate offices
280
Countries
80
4
Harvard Overview
• Managed Services organization specializing in delivering high quality janitorial service to commercial office space nationwide.
We:
• Drive a People First culture
• Have transparency in our relationship
• Manage business using quantitative, metrics-based information
• Lead in Sustainability and Cleaning for Wellness initiatives
• Lead in Innovation
• Early adopter of Facility industry advanced council relationships
Highlights
Sectors Served
• Corporate Office Space
• Financial Services
• Medical Office
• High Tech / Pharma
2015 revenue
$360M
Employees
8,500
Managed Portfolio
280M Sq. Ft
Corporate offices
8
Countries
US Only
5
• Goals:
• Introduce Concept of Supplier Councils
• Provide Examples and Benefits
• Generate ideas and promote implementation
6
• Presentation Objective:
Demonstrate how JLL uses Supplier Advisory Councils to develop
cooperative value with our strategic suppliers to more effectively
achieves business objectives
Business Requirements
7
What do our business stakeholders expect?
Supply Chain / Procurement Solutions
8
Tools / Methods Used
Supplier
Performance
Mgt
P2P
Competitive
RFx
Strategic
Relationship
Mgt
Six Sigma,
Lean, Kaizen,
JIT
Market
Analysis
Risk
Frameworks
Strategic
Plans
Strategic
Core
Common Supplier Relations
Month 00, 2014 9
What are our common supplier relationships
Transactional
?
Month 00, 2014 10
A different way?
Desired outcomes
11
How can we break the mold of strategic supplier relationships?
Breaking the Buyer-Vendor Paradigm
Supplier Advisory Councils
JLL assembles groups of best in class companies;
• Focused around critical and high spend categories
• To all meet together twice a year
• Chaired by buy side org
• To Co-Operate, Co-innovate, Co-llaborate
12
Supplier Advisory Council Charter
• Council Charter StatementThe Supplier Advisory Council will serve as a cooperative partnership to support the servicing of
clients by providing advice and counsel on best in class service performance, quality,
innovation and financial standards as well as feedback regarding existing or planned initiatives and
service experience(s) of existing clients. The council will work collaboratively to support and enhance
service offerings and to continue to create value for clients.
13
What is the mission of Supplier Advisory Councils?
Breaking the Buyer-Vendor Paradigm
Supplier Advisory Councils
Requirements
• Build a Foundation of Trust, Transparency and Compatibility
• Need Vested commitments
• Be Candid
14
Collaboration is a working practice whereby
individuals work together to a common purpose to
achieve business benefit.
JLL Supplier Advisory Councils
• Security Guarding
• Facility Trade
Aggregator
• Janitorial
• Exterior Services
15
SRM
Customer
Satisfaction
Strategy
Alignment
Risk
ManagementInnovation
Corporate
Responsibility
Council
Service Level
Optimization
•Office Services • Cross Sectional
Benefits
16
What are the benefits to stakeholder groups? Why?
Benefit Sourcing Supplier End Stakeholders
QualityBest Practices
development
Advanced client
engagementPriority Service
Market Intel Industry IntelligenceAccess and
Alignment
Supply Chain
Transparency
Financial SavingsReduced Cost of
SalesOptimized Costs
Council KPI’s
Increase in supplier RevenueFinancial
Innovation / Best practice submissions, implementations
Intelligence
Supplier Performance Management scoresSPM
Increase in transactional activity
Quality
Development of white papers, case studies, training, workshops
Innovation
17
How do we measure success?
Improved quality metrics
Activity
Host Company Success Example
ScenarioJLL was challenged to reduce janitorial costs within a $40 Million contract. Market conditions; Union (CBA) governed, Escalating wage pressure, Recently sourced and consolidated to 1 provider.
SolutionWith the partnership of Council members, JLL was able to proactively advise members of intent and goals. With their input, JLL Created TCO RFP pricing model structure for transparency. Lotted RFP to optimize bidder strengths. Competitively bid via leveraged RFP event utilizing eSourcing platform.
ResultRFP delivered ~7% savingsJLL awarded to 2 council partnersMitigated future service risksMaintained high service levelsIntroduced Sourcing led strategic relationship programs
Month 00, 2014 18
JLL Case Study
Supplier Success Example
ScenarioJLL Strategic Sourcing was engaged with their Pursuit team on a new Business Development initiative. Janitorial was a core offering of the JLL value proposition due to being a pain point for the prospect.
ScenarioJLL engaged Harvard early in the pursuit process, transparently shared goals and account objectives to include janitorial savings goals and anticipated budgets parameters. We openly shared SOW modification thinking.
ResultJLL was awarded the contract, the completeness of the janitorial offering was cited as one of the reasons.Harvard will be providing Janitorial services and picks up a $3M new piece of business.
Month 00, 2014 19
Harvard Case Study
Presenters
Month 00, 2014 20
Jason Linn
Tel: 404-995-6528
Email: [email protected]
JLL
SVP, Strategic Sourcing
John Ravaris
Tel: 610-662-8406
Email: [email protected]
Harvard Maintenance
EVP, Sales & Marketing
Denver Clark
Tel: +00 (0)00 12345678
Email: [email protected]
JLL
Chief Procurement Officer
COPYRIGHT © JONES LANG LASALLE IP, INC. 2014
Thank you
Appendix and References
Month 00, 2014 22
Supplier Advisory Council Framework
Chaired by Sourcing organization
Chair Company Participants: Sourcing (Council Chairperson, CPO, Category Mgr., SRM lead, Regional sourcing rep(s), Ops/Engineering rep, SME, Sr. Business Line Leader)
Supplier Members:
Supplier Participants: Strategic Suppliers (~3-6 firms), 2 representative each
Council Meeting Cadence & Place:
Council will meet bi-annually, at member hosted (rotating) facilities
Meetings are collaborative sharing environments with all stakeholders together
23
Who makes up a Supplier Advisory Council? When / Where are meetings?
Council Selection
SUPPLIER SELECTION
• Evaluate candidate firms on criteria of:
- Performance (SRM) results and account / region feedback
- Strategic alignment with your firm
- Proactive and Sr Supplier Mgt support
- Competitive pricing and current activity
- Innovation
- Client / stakeholder satisfaction
- Total Spend
*~3-6 firms per category council
24
How will the Suppliers and Members be selected?
Internal Committee Member Selection Team
• Sourcing
- ‘Chairperson’ - SVP, Sourcing
- ‘Co-Chair’ Category Mgr.
- Sourcing/Purchasing regional leads
- CPO
• Operations
- Engineering / Ops Leadership rep
• Business Leadership
- Business line reps
**Evaluated via Formal Team Survey
Supplier Advisory Council Dialogue & Output
25
What is the expected dialogue and output within these councils?
TOPICS
- Market & business trends
- Create specific solutions for clients
- Discuss challenges
- Provide Expertise, Speed, Service, Value
- Produce white papers, industry trade articles, etc.
- Internal Memo’s and SME content
Supplier Advisory Council Charter
• Council Charter StatementThe Supplier Advisory Council will serve as a cooperative partnership to support the servicing of
clients by providing advice and counsel on best in class service performance, quality, innovation
and financial standards as well as feedback regarding existing or planned initiatives and service
experience(s) of existing clients. The council will work collaboratively to support and enhance
service offerings and to continue to create value for clients.
26
What is the mission of Supplier Advisory Councils?
Evaluation How-to:
Your feedback drives
SIG Event content
By signing and
submitting your
evaluation, you are
automatically entered
into a prize drawing
Why?
Option 1: App
1. Select Schedule2. Select Schedule by Day3. Select Day4. Select Session5. Scroll to Description
6. Click on the Evaluation link
Option 2: Browser
1. Go to www.sig.org/eval2. Select Session (#15)
How?
COMPLETE &SUBMIT EVAL
Tweet: #SIGfall16
Session #15
Breaking the Buyer-Vendor Paradigm with
Supplier Advisory Councils
www.sig.org/eval
Download the App: bit.ly/SIGfall16
JLL Denver Clark 678-938-2586 [email protected]
JLL Jason Linn 404-585-1086 [email protected]
Harvard Maintenance John Ravaris 610-662-8406 [email protected]