Supply Chain Transformation:What You Need to SucceedSusan Lasecki-CoiroHead of Strategy Performance, Group Supply Chain
Who We Are at a Glance• One of the world’s largest mining companies• Focused on the following commodities: •   Platinum – ...
Topics for TodayI   Supply Chain transformationII What you need to succeedIII Where to nextIV Local supplier: La Fancy Kay
I. Supply Chain Transformation                  Anglo American            Metals & Mining Industry     Masters in Procurem...
I. Supply Chain Transformation• Vision: becoming the industry leader and global  benchmark for supply chain value creation...
I. Supply Chain TransformationFrom                                                                                     ToB...
II. What You Need to Succeed                                                                                              ...
II. What You Need to Succeed                                                                                              ...
II. What You Need to Succeed                           Process and Systems                                                ...
II. What You Need to Succeed                               Capability Development             Capability Accelerator      ...
III. Where to Next                                                                          Supplier Relationship Manageme...
III. Where to Next                             Local ProcurementLocal Procurement policy                                CO...
III. Where to Next                     Case Study
Upcoming SlideShare
Loading in...5
×

Supply Chain Transformation - What You Need to Succeed - Susan Lasecki-Corio, Head of Strategy Performance, Group Supply Chain at Anglo American

2,030

Published on

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,030
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • In 2008 as part of the One Anglo initiative, we identified a significant improvement opportunity through the transformation of our Procurement and Supply Chain operations globally. At the time our Supply Chain operating model was decentralised and not taking full advantage of the group’s scale and purchasing power. An effective and efficient Supply Chain organisation is a key source of value so best practice, performance benchmarks and other mining houses were analysed to develop the optimum model transition roadmap for Anglo American. When we compared ourselves against Mining industry peers and procurement best in class benchmarks, the major areas of opportunity were in strategic sourcing and category management, and supplier relationship management. From this analysis the business case for implementing an approach to category management was developed in order to achieve $1 billion of improved value by 2011. This is equivalent to just over 10 percent of our annual spend or 3.5 percent each year for three years. This spend was split into four category groups Projects & Services ($2.7B), Mining Production ($4.7B), Processing and Transport ($2.6B)and Support Services and Equipment ($1.4B) based on 2009 estimated spend of $10.9B. A vision was also set for Anglo American Supply Chain “To be industry leader and global benchmark for Supply Chain value creation”.
  • In 2008 as part of the One Anglo initiative, we identified a significant improvement opportunity through the transformation of our Procurement and Supply Chain operations globally. At the time our Supply Chain operating model was decentralised and not taking full advantage of the group’s scale and purchasing power. An effective and efficient Supply Chain organisation is a key source of value so best practice, performance benchmarks and other mining houses were analysed to develop the optimum model transition roadmap for Anglo American. When we compared ourselves against Mining industry peers and procurement best in class benchmarks, the major areas of opportunity were in strategic sourcing and category management, and supplier relationship management. From this analysis the business case for implementing an approach to category management was developed in order to achieve $1 billion of improved value by 2011. This is equivalent to just over 10 percent of our annual spend or 3.5 percent each year for three years. This spend was split into four category groups Projects & Services ($2.7B), Mining Production ($4.7B), Processing and Transport ($2.6B)and Support Services and Equipment ($1.4B) based on 2009 estimated spend of $10.9B. A vision was also set for Anglo American Supply Chain “To be industry leader and global benchmark for Supply Chain value creation”.
  • Arrow on date showing continued transformation
  • Mention we won Award from Proc leaders – for cap acc
  • Transcript of "Supply Chain Transformation - What You Need to Succeed - Susan Lasecki-Corio, Head of Strategy Performance, Group Supply Chain at Anglo American"

    1. 1. Supply Chain Transformation:What You Need to SucceedSusan Lasecki-CoiroHead of Strategy Performance, Group Supply Chain
    2. 2. Who We Are at a Glance• One of the world’s largest mining companies• Focused on the following commodities: • Platinum – Iron ore • Diamonds – Metallurgical coal • Copper – Thermal coal • Nickel• Employees: 107,000• Market cap. (LSE): ~$68.3bn• Performance 2011 • EBITDA $13.3bn • Operating profit $11.1bn • Underlying earnings $6.1bn
    3. 3. Topics for TodayI Supply Chain transformationII What you need to succeedIII Where to nextIV Local supplier: La Fancy Kay
    4. 4. I. Supply Chain Transformation Anglo American Metals & Mining Industry Masters in Procurement Mining Peer Best in Class 100% 94% 93% 90% 83% 84% 87% 89% 86% 83% 81% 75% 69% 64% 64% 64% 59% 56% 53% Score 50% 53% 54% 46% 48% 43% 38% 25% 0% Procurement Sourcing & Category Requisition Supplier Relationship Workforce & Technology Strategy Management to Pay Management OrganisationSource: Accenture analysis (2008)
    5. 5. I. Supply Chain Transformation• Vision: becoming the industry leader and global benchmark for supply chain value creation• Target: create $1 billion of additional value by 2011• Plan: • Deploy new operating model and deliver value through category management and strategic sourcing • Develop and apply consistent processes, governance and performance management framework • Improve capability through better teamwork and individual competencies
    6. 6. I. Supply Chain TransformationFrom ToBU Supply Chains 2008 2009 2010 2011 an integrated New operating model Supply Chain Platinum 1 Organisation change Diamonds Copper $1bn of value Nickel Strategic category management by end 2011 Iron Ore & Wave 1 Manganese 2 Wave 2 Become Metallurgical Wave 3 industry Coal leader and Wave 4 Thermal Coal global Other Mining Processes and systems benchmark for and Industrial 3 supply chain Define Enablers Implement Enablers value creation 4 Capability development and Change management
    7. 7. II. What You Need to Succeed New Operating Model 2008: Decentralised Procurement 2011: Centre-Led Team Group Group Group Group SC SC Strategic Category Management BU Supply Chain Platinum Platinum Projects & Services Projects & Services Met. Coal Met. Coal Thermal Coal Thermal Coal Mining Production Mining Production Platinum Platinum Coal Coal Ferrous & Ferrous & Base Base Nickel Nickel Industries Industries Metals Metals Copper Copper Processing & transportation Kumba II O Proc. Proc. Proc. Proc. Kumba O Support services IIO Brazil O Brazil Support services & equipment O M & II OM& Governance Strategic Category Boards Financial Policy Benefits Measurement Tool AA PLC ExCo Business General Management sub-Committee 1 Opportunity Idea Initiative 2 Approved Project 3 as Usual 4 Strategic Log initiative in Achieve approval f or plan Update and approve implementation Track delivered Category Strategic SCB 2 Strategic SCB 3 Strategic SCB 4 BM Tool benef its Commodity Board (SCB) 1 Commodity Commodity Board Board Board Spend Area 1 Projects & Spend Area 2 Mining Processing & 2 Spend Area Support Services Production Transport Services & Equip Cross-Functional Group Category Teams Crushing - Temporary - BU Services Fuels & Lubes Mining Supply BU Supply BU Supply Personnel Chain Council Chain Council EPCM Tyres Chain Council & Grinding IM Base Structural Steel Coal HME KIO Conveyors Electricity
    8. 8. II. What You Need to Succeed Strategic Category Management Category Planning Analysis Recommendations HIGH LEVEL SPEND MARKET INTERNAL INTERNAL & STRATEGIC OPTION HIGH LEVEL SUPPLY & DEMAND PROFILING & COST MODELING POSITION FUTURE TECHNICAL ASSESSMENT AND CATEGORY IMPLEMENTATION MARKET DYNAMICS SEGMENTATION ASSESSMENT REQUIREMENTS ASSESSMENT STRATEGY PLAN Strategic Sourcing Data Collection & Analysis Opportunity Development & Negotiation Implementation Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Identify Develop Category Develop Identify Selection Conduct Develop & Opportunities Value Creation Factors & Screen RFP / Negotiate Implementation Profile Strategy Suppliers Auction Agreements Sources of Value TCO Arbitrage Low Cost Country Sourcing Mine level Activity level (eg, load & haul) Equipment level (eg, truck) New equipment Hardware ($/hr) Total life-cycle Components cost ($/hr) + ($/hr) Energy Parts Total operating Fuels, electricity ($/hr) + cost ($/hr) ($/hr) Tyres Fixed costs ($/hr) Labour and overheads ($/hr) Unit cost ($/Ton) ÷ Engineering Installed Throughput Utilization = x availability x capacity (Tons/hr) (%) (%) (Tons/hr)
    9. 9. II. What You Need to Succeed Process and Systems Collaborative procurement Spend Analysis Master Data Management1 Sourcing & Contracts Strategic Sourcing Contracts Management ERP’s (SAP + Ellipse)2 Spend Analysis Spot Order Goods Service Invoice Remittance Order RFQ Status Receipt Confirm Response Advice3 Master Data Mgmt. Source4 Requisition to Pay Centre5 E-catalogues Ariba Network + Catalog6 Spot Sourcing Order Advance Order Service Suppliers Quote Status Ship Invoice Suppliers Response Entry Response Notice
    10. 10. II. What You Need to Succeed Capability Development Capability Accelerator Action Learning Cycle L=P+Q • Learning • Programmatic Knowledge • Insightful Questioning Change Management Communications & Feedback Engagement Loops Facilitation
    11. 11. III. Where to Next Supplier Relationship Management Integration of Supplier Collaboration with BU Strategy & Operations Customer Supplier LEVEL 4 Current Maturity Collaboration,Level of engagement behaviors, and (Beyond Supply Chain) LEVEL 3 capabilities are embedded in Value delivered Enterprise-wide processes that LEVEL 2 SRM / involve /affect collaboration with key suppliers One or more links to business Programs at strategy SRM Programs LEVEL 1 BU level integrated with key supplier Ad-hoc activity Ad-hoc Systematic, relationship - reciprocal no formal targeting / Supplier Account SRM measurement specific targeting & measurement Management Programs of opportunities programs to create value of value SRM Program Maturity Copyright © 2011 by Vantage Partners, LLC. All rights reserved.
    12. 12. III. Where to Next Local ProcurementLocal Procurement policy COORDINATEhas driven integration WITH LOCAL PROCUREMENT INITIATIVESbetween SupplyChain, business units and Key enablers: Policy, Ring-fencing Enterprisefunctions Development Contract Terms, KPIs, Relevant Categories Definitions, Reporting of SpendInitiatives are improving: Social Investment Local Supplier Country Strategies Programmes Development for Local • Community relations Micro-credit Programmes Procurement Initiatives • Project approval times Integrating Local and Stakeholder Supplier Parks China sourcing • Competitive advantage engagement
    13. 13. III. Where to Next Case Study

    ×