erste group procurement - information-driven procurement organisation
TRANSCRIPT
How to tame your Data Dragon:
Running Information -driven multinational procurement organisation
Darko ŠEPIĆ
2015-12-10
EGP Services
EGP – World Class Procurement
SourcingInternational/Local
Purchasing Local/Tactical
Order Management
BPOBusiness Process
Outsourcing
Avoid and reduce costs based on TCO
Purchasing based on categories on international or local level
CR/CARisk Mitigation
Category MgmtSRMContract Mgmt
Spend based fee
Ensure on time and in place availability of 3rd party services and goods efficient
Operational management of POs. Spend from a locally defined lower limit (i.e. 5K) up to a limit of 30K
PO Coverage (Compliance)Internal execution of orders ≤ 5 daysPO/Boilerplate contracts
Ordering PlatformsTemplatesHotline
Spend based fee
Ensure convenient execution
Call-offs from existing contracts (unlimited) and purchases under the lower limit of Service B
Straightforward execution
Done by business line
Purchasing Project
Contract Creation
Category MgmtVendor Mgmt
Contract Mgmt
Requisition &
Ordering
Documentation&
CR/CA Calculation
Receipting&
Evaluating
InvoiceProcessing
Purchasing Project
Contract Creation
Category MgmtVendor Mgmt
Contract Mgmt
Requisition &
Ordering
Documentation&
CR/CA Calculation
Receipting&
Evaluating
InvoiceProcessing
Purchasing Project
Contract Creation
Category MgmtVendor Mgmt
Contract Mgmt
Requisition &
Ordering
Documentation&
CR/CA Calculation
Receipting&
Evaluating
InvoiceProcessing
Provide cost-efficient services
Operations of support processes for the local banks
Separate feeper service
• Travel Depart.• Print Shop• Warehouse
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Analysis Paralysis?
How to run information driven multinational procurement organisation?
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� No other Central functions existing in the Group,
only local entities & „coordination” roles
� Seven different languages
� Seven different bank histories & business cultures
� No common IT system nor IT environment
� No data existing for major part of procurement area
� Low awareness within current procurement
organisation about need to change & develop
Year 2007: Challenges
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What gets measured gets done:Creation of Data for Goal setting & Right Performance
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- Management dedication
- Establish Organisational unit for Business IntelligenceA
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What gets measured gets done:Creation of Data for Goal setting & Right Performance
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- Understand data, relations between various data & how it will be used
- Build tools for data input, data analysis and reportingB
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What gets measured gets done:Creation of Data for Goal setting & Right Performance
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- Gather data from all possible sources (if not existing, create a source)
- Create output, analyse and enrich it (reports, dashboards, visualisations)C
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What gets measured gets done:Creation of Data for Goal setting & Right Performance
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Supplier dataSupplier data External indexesExternal indexes
Workflow dataWorkflow dataPersonal dataPersonal dataOrganisational data
Organisational data
Maverick spend
Maverick spend
Order management
Order management
ProjectsProjectsBudgetsBudgets
ContractsContractsSurveysSurveysSpendSpend
SavingsSavings
Managing spend & risk Support Operations
ROI / CoA metricsCustomer Satisfaction
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What gets measured gets done:Creation of Data for Goal setting & Right Performance
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� Align Company & Personal goals
� Set clear, quantitative targets which are linked to data source
� Create data source where missing or do not set target if you can not measure it objectively
� Inspect what you expect, linked to the BI system for continuous measurement
� Build knowledge y/y basis and develop the system
� Visualise & explain goals to the team
Housekeeping:Keeping the information source trustworthy
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Mechanisms
� Clear responsibility & ownership in the system for
each & every document / data source
� Regular management & staff meetings -
housekeeping on agenda
� Immediate system-based alerts to staff &
management
� Weekly push report - scorecards
� Data report Reviews on Quarterly business reviews
with customers & suppliers
� Personal KPIs directly linked to continuous data
quality
E-mail alerts
Weekly scorecards
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Be careful what you wish for:The culture change in procurement organisation
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D
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� Ongoing Change management process
� Take care of soft facts, networks, team roles
� Facts and Data will have limited success on cultural change
� Fear of change is based in ignorance – educate & inform continuously
� Visualise goals
� Never give up
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The Future
� Expansion of Cross-section measurements (Derivatives/Indexes)
� Integration of External market data sources (GPCA)
� Integration of Supplier Risk management & Compliance sections
� Deployment of Balanced scorecard portal to every employee
� Step-up toward Predictive & Discovery Analytics
� Complete the puzzle
� Expansion of Cross-section measurements (Derivatives/Indexes)
� Integration of External market data sources (GPCA)
� Integration of Supplier Risk management & Compliance sections
� Deployment of Balanced scorecard portal to every employee
� Step-up toward Predictive & Discovery Analytics
� Complete the puzzle
2015-12-10