Short case study looks at how Procurement can build upon their strategic importance by selling their time to vendors.

1. SELLING
PROCUREMENT’S
TIME
A
SHORT
CASE
STUDY
Global
Materials
Manufacturer
SLIDESHARE.NET
-­‐
OCTOBER
2014
buiiDme.com

2. Business
and
Procurement
Profile
Business
Profile:
Ø Manufacturer
of
materials,
operaDng
in
the
major
market
segments
of;
Chemicals,
Compounds
Resins
and
Fibers.
Ø Their
materials
are
found
in
Consumer
&
Industrial
ApplicaDons,
TexDles,
Raw
Materials,
Building
&
ConstrucDon
and
AutomoDve.
Ø Global
manufacturing
and
distribuDon
footprint,
with
$1+
billion
in
annual
sales.
Procurement
Profile:
Ø Complex
procurement
and
supply
chain
to
manage,
with
a
diverse
supplier
base,
where
most
vendors
are
located
domesDcally
in
the
U.S.
Ø 25%
of
vendors
comprise
75%
of
company
spend.
Procurement
oversees
approximately
2/3s
of
spend.
Ø Procurement
Team
is
lead
by
a
Chief
Procurement
Officer,
reporDng
directly
to
the
CFO.
Ø Team
of
20
procurement
professionals,
including;
Directors
of
Procurement,
Procurement
Mangers,
Category
Managers,
Analysts
and
AdministraDve
Support.
Ø Challenge
in
recent
years
has
been
to
not
only
keep
improving
on
cost
containment
iniDaDves,
but
to
broaden
it’s
role
within
the
organizaDon
to
be
more
strategic
in
how
the
company
sources
and
uses
it’s
resources.
Ø Employing
various
procurement
tools,
consultants,
programs
and
KPIs
to
track
the
Procurement
Group’s
impact
on
the
organizaDon.

3. ImplemenDng
BuiiTime
Procurement
Process:
Ø Integra(on:
BuiiTime
employed
as
a
Dme
management
and
scheduling
tool,
where
procurement
personnel
can
be
paid
for
the
Dme
they
spend
in
meeDngs
with
potenDal
vendors.
Ø Target
Audience:
Non-­‐Strategic
Vendors,
and
marginal
vendors
who
may
or
may
not
have
the
right
product/
service
soluDon
for
the
organizaDon.
Ø Use:
Use
BuiiTime
as
another
tool
to
book
face-­‐to-­‐face
meeDngs,
conference
calls,
or
other
events
where
suppliers
and
vendors
request
procurement’s
aeendance.
Ø $
Generated:
The
$
generated
from
selling
staff
Dme
to
vendors
will
go
to
directly
off-­‐set
the
groups
cost
to
operate,
including
salary,
occupancy,
….
Compliance:
Policy
and
Controls
Ø Policy:
The
Company
has
set
the
$
acceptance
policy
guidelines
for
the
BuiiTime
tool
to
be
consistent
and
compliant
with
their
overall
“giis
policy”.
Responsibility
for
the
program
rests
with
the
CPO,
with
oversight
from
the
CFO.
Ø Time
Slot
$
Limits:
Limits
of
$200
per
hour
have
been
set
for
the
BuiiTime
tool,
and
an
overall
vendor
limit
of
$2,500.
ExcepDons
must
be
approved
outside
of
the
procurement
group,
by
a
member
of
the
CFO’s
office.
Ø Control:
A
central
admin
will
oversee
the
use
of
BuiiTime,
with
the
CPO
responsible
overall
for
administraDon.
The
other
members
of
the
procurement
team
will
not
be
permieed
access.
BuiiTime
is
used
to
populate
a
central
calendar.

4. Expected
Outcomes
via
BuiiTime
Procurement:
Ø Procurement
Group:
Based
on
past
meeDng/event
volumes
with
vendors,
expected
to
cover
20%
of
the
Procurement
Group’s
direct
costs.
This
is
viewed
as
a
permanent
and
on-­‐going
reducDon.
Ø KPIs:
Expected
to
boost
the
groups
ROI
to
the
organizaDon
by
10-­‐20%.
Ø Produc(vity:
Expect
a
boost
to
producDvity,
as
less
requests
for
meeDngs
based
on
marginal
vendors
not
paying
for
Dme.
MeeDngs
that
do
occur,
$
protect
the
downside
of
non-­‐
producDve
Dme
spent
with
a
vendor.
Ø Expansion:
Based
on
successful
implementaDon,
extend
the
reach
beyond
procurement,
first
to
capture
$
where
procurement
is
not
controlling
spend,
and
then
into
other
categories
of
expense/vendor
management.
Ø Strategic:
Boost
the
group’s
overall
strategic
importance
to
the
organizaDon,
through
beeer
uDlizaDon
of
staff
Dme.

5. Generate
More
Value!
SELL
YOUR
TIME
buiiDme.com