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Procurement Asia Presentation May 26th 2010
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Procurement Asia Presentation May 26th 2010






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Procurement Asia Presentation May 26th 2010 Presentation Transcript

  • 1. To manage or not to manage? That’s the question – a journey through the economic crisis rollercoaster Ard Verboon Director Purchasing Philips Consumer Lifestyle 1
  • 2. Philips TV tries to make a difference in a world of similarity, continuously looking for differentiation Philips Aurea, ambilight and 21:9 A sea of similarity To VTM To VTM 6-month launch window 6-month launch window Confidential
  • 3. Competing with formidable players Global competition Regional specialization Segment specialization Confidential 3
  • 4. Dealmaking is of all times, and well managed relationships can give you a competitive advantage Many suppliers also see your competition Confidential 4
  • 5. How are your relationships? Do you know? What if you do not know? Ask ! Trust your instincts ! Confidential 5
  • 6. SRM: ‘to manage’ is a verb. It implies it is an active process! - Joint Management Agenda’s And some basics ! - Supplier Rating Systems - Minutes of meetings (at - Quarterly Business Review all levels) Meetings - Good listening skills - (Bi-yearly) Top Management - Good talking skills Meetings - Intercultural awareness - Supplier Survey - Financial evaluation Confidential Consumer Lifestyle, June 2008, P&S 6
  • 7. …. but I already call them partner ! Confidential 7
  • 8. Joint Management Agenda’s to make the relationship more equal and align vision, goals and focus Supplier Philips Strategic vision • Sales targets • Sales targets as communicated • EBIT targets • EBIT targets to our • Strategic direction 3-5 • Strategic direction 3-5 years shareholders years ahead ahead • Regional focus Joint Mission •Create value together, capitalizing on each other strengths Joint Vision •We are committed to drive profitability and seamlessly grow together Joint Targets •Lowest Cost of Ownership (TCO) across the value chain through scale and operational excellence Topic Operational Excellence Seamlessly grow together Confidential 8
  • 9. Business Review Meetings involving all functions, as a relationship is not limited to purchasing-sales Purchasing as the relationship orchestrator Also BRM meeting Involve the hierarchical layers Involve the chairman other functions Source : IMD,Carlos Cordon, Philips Confidential 9
  • 10. And you discuss the Supplier Ratings in BRM / TMM Innovation Performance Responsiveness and Supporting Cost Delivery Quality Confidential 10
  • 11. So how have you fared through the economic crisis rollercoaster? Or should we say supply rollercoaster? Confidential 11
  • 12. Real life: Sooner & More workshops in February 2009 • Response to economic crisis • Relay series of events • Because we need to react fast • Get More savings • And cash them Sooner Confidential 12
  • 13. We created transparency on our business situation, our plans and expected contribution Confidential 13
  • 14. And have kept our word From Capital Market Day December Confidential 14 2009, L Bennett presentation
  • 15. So when you have $10 to give away and the choice: someone you like, and someone you do not like…. Dealmaking – a process between people Relationship Management – perseverance and conviction 80/20 rule - focus Be transparent Be credible ‘Patch the roof when the sun is shining’ and be very passionate about it ! Confidential 15