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Richard Beaumont, Global Procurement Development Executive at Rolls-Royce - Enabling ebusiness through global transformation
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Richard Beaumont, Global Procurement Development Executive at Rolls-Royce - Enabling ebusiness through global transformation

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Richard Beaumont, Global Procurement Development Executive at Rolls-Royce spoke at the CPO Event September 2013

Richard Beaumont, Global Procurement Development Executive at Rolls-Royce spoke at the CPO Event September 2013

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Richard Beaumont, Global Procurement Development Executive at Rolls-Royce - Enabling ebusiness through global transformation Richard Beaumont, Global Procurement Development Executive at Rolls-Royce - Enabling ebusiness through global transformation Presentation Transcript

  • Richard Beaumont Enabling Purchasing eBusiness through Global Transformation Trusted to deliver excellence
  • Enabling Purchasing eBusiness through Global Transformation
  • We will transform our purchasing experience through embracing eBusiness Today • Functional Portal platform • Basic user support • Complex supplier network • Limited dedicated resource to develop applications • Limited use by suppliers Vision An effective work space between employees and suppliers hosting intuitive applications Delivers • Better control • Improved decisions • Reduced G&A cost • Cost reduction • Increased efficiency • Fantastic user experience • A single supply chain environment 3
  • Investment in eBusiness to make our supply chain as ‘easy to use as Amazon’ eBusiness creates competitive advantage through delivering a complete Supplier and Buyer Portal that provides: • Reduced Supplier costs that make Rolls-Royce their ‘Customer of Choice’ • One portal workspace for buying teams, requisitioners, suppliers and the wider Rolls-Royce community who need to buy • Intuitive eTools using sound data • A world class purchasing experience • Self service for all users at appropriate authority level • A common approach for direct and indirect
  • Data Integrity ‘Ensure purchasing data is consistent, accurate and accessible’ eTools ‘Develop eTools to enhance our process and provide excellent support to all users’ Sourcing Process ‘Ensure our process is effective, efficient and agile’ eBusiness is dependent on 3 foundations
  • 2013 2014 2015 2016 2017 LevelofEfficiency Data Integrity Process Review eBusiness ‘The Purchasing efficiency of our organisation will increase through time’ Data clean up Ownership of data Robust Governance & Compliance Simplify key processes Develop support material Support model and training defined Upgrade Portal Contract management Digitise legacy drawings Launch SAP Sourcing Customer portal upgrade Improve business reporting Simplify other processes Update SAP Sourcing for all sectors with new process Embed data integrity Single sign-on to all Portal applications Full Integration of engineering and purchasing systems ‘Nextgen’ Customer Portal Consolidate software provision 6 These foundations are linked and are planned to 2015+
  • Central Resources •Central team •Work packages •IT Function Sector & Regional Resources •Business leads •IT teams •Analysts •Purchasing Capital Investment •Changes to existing systems •Decommissioning of legacy systems •Investment in new tools  We talk across the business to determine what resources and people are dealing with issues today  We ‘weave’ a collaborative plan to achieve our objectives by enhancing existing activity to achieve the quickest and most effective solution for all Delivery is complex and our approach is to work collaboratively to enhance ‘business as usual’ activity
  • Data Integrity
  • Master Data SAP Sourcing Spend Visibility Web monitors Business Warehouse Automatically bridged / transmitted BaaN Legacy ERP Systems SAP Clear owner Data integrity is the key to success: We are working to deliver a single master data set for the business
  • Integration of legacy systems has led to data integrity challenges: we established clear ownership, plans and milestones to address them Current State Action Future State Metric Action required to remove duplicate vendor codes Cross-functional engagement, process definition and execution led by central team Duplicates eliminated, governance in place to avoid new ones Aero– <1% Services – <1% Energy – <1% GI – <1% Marine – <1% Purchase Organisation Material Group - Commodity Export Control Commodity Strategies Purchase Orders Material/Service Master Vendor De-Duplication Org & Vendor Owner Contract Meta Data Sector Priority Synthesis BAU Data Day Central Team Comments Jan Feb Mar Data Day Apr May Aero 1 Y P Y S S S D W W C.Marine 3 Y Y CH BELIEVED NO PROBLEMS C W W W W N.Marine 2 Y P CH PRI 1 IF X-SECTOR INVOLVING AERO CODEC D W Nuclear 2 Y P As a priority where Nuclear vendors are common with Aero and Marine: Nuclear to be included in decision making as to C D W GRS 2 Y P Y PRI 1 IF X-SECTOR INVOLVING AERO CODEC D W Energy 2 Y N Y PRI 1 IF X-SECTOR INVOLVING AERO CODEC W Indirect 2 Y P Y PRI 1 IF X-SECTOR INVOLVING AERO CODEC D W CH Check if Relevent 1 Priorty 1 C Consult Y Yes: could do this 2 Priority 2 S Synthesis N No: cannot do this 3 Priority 3 W BAU P Could possibly do this D Data Day NR Believed Not Relevent CT Central Team
  • Data Integrity Case Study – Material Groups
  • Buyer’s Work Queue Drawings Material Group MG is set Buyer is looked up from the MG Parts are routed to this buyer’s work Queue In a fully automated sourcing process, having the wrong MG could mean a demand is transmitted to the wrong buyer using the wrong sourcing strategy Material Groups (MG) drive work queue and are a hidden problem
  • • Identify and fix all workflow items that have an incorrect MG Work Queue • Maintain a watch to catch incorrect MGs Work Queue • Check all expiring supply agreements and correct them before renewal Agreement Expiry • Ensure new products are given the right MG, right first time New Products Fix Now Maintain through Shared Service We are combining immediate fix and a Shared Service to resolve errors
  • Engineering complete on- line request •Provide Engineering Commodity •Solution Number •Number of Parts •List of part numbers Shared Service allocates MG •View drawing / discuss with Engineering •Decide MG using web tools •Enter MG into Engineering ERP Engineering release parts to SAP •Release to Business A robust Shared Service process maintains integrity
  • eTools
  • Applications User homepage Exostar secure log in Open access content Supplier Portal homepage 16 eTools start with a Portal that provides both a ‘front desk’ and a gateway to secure transactions for all users
  • We used the Innovation Portal to ask the people (including customers and suppliers) to draw what their perfect Portal homepage might look like…… It would be great to LOGIN once to all applications I need access to Outlook email and calendar I want live task updates from all my tools I would like Quick links to frequently used tools/sites I want access to my inboxes and workqueue I want to be able to search for parts as easily as Amazon I want to create Widgets to allow me to switch between tools, dashboards and web pages We are designing our eBusiness Portal by listening to all users…..
  • We harness these ideas to design a new Portal that becomes an intuitive focal point for all supply chain activities and users CUSTOMERS: Customers can execute purchases SUPPLIERS: LOGIN as ‘License to Supply’ allowing upload of product information PURCHASING: ‘Back office’ tools to manage strategy, approve items and execute purchases OTHER FUNCTIONS: Back office tools to manage supply chain enablers, e.g. ePO, eDrawings, ERS MANAGERS: View up to date reports, dashboard and KPIs EXTERNAL AUDIT: Access all activity and view/edit audit reports COMPLIANCE: Access all activity and upload/manage audit reports New Portal ….because a perfect Portal works for everyone in the supply chain
  • %implementation Perceived success of the application %implementation Perceived success of the application 2013 Delivery schedules FAIRs Catalogues Spend Visibility RFx Contracts ePOs Scorecards ERS Invoicing 2015 Schedules eFAIRs Spend Visibility RFx Contracts ePOs Scorecards eInvoicing 19 We aim to increase usage of these applications and fully embed them in our automated processes Today we have a range of applications, available to parts of the business, which have mixed functionality 2013 - Priority Drawings Catalogues Behind the Portal sit the applications that enable eBusiness
  • Implementation plan and deliverables ▪ The customer is anyone who uses a purchasing application or processes ▪ The model will provide both reactive support/advice and proactive continuous improvement for tools and processes ▪ There will be a single point of contact “triage” ▪ The model will include some form of business representation ▪ A tool will be used to log all calls ▪ There will be clear pathways for issue resolution ▪ There will be clear roles and responsibilities for and between; the business, the function and IT Support Model Principles Future Operating Model 20 Business Process Owners - Process Change (L3) Business Implementation PDM Exostar Sector Key Users / Change champions Knowledgeable colleague REGIONS Service Desk (L1) - Log & Refer MYIT/phone/email Business Change - Training - Communications FUNCTION Asia Europe NA Proposed Future OM - Purchasing Process and IT Support Application Support & System Development (L2 – 3) - Technical support - Technical change Purchasing Intranet Informal RR CoC/IT/EXTERNAL Users Suppliers Internal Transformation/Large Project Delivery CRs SRs CoC (L4) Business Support & Administration (L2) - How do I? Process Support - How do I? App Support - Change request review - Minor development - New users - Data Administration Business support PDL (L2) Using eTools requires effective Business Support
  • Process Improvement
  • 2 2 4 Control 3 Ownership 2 Allow Flexibility 1 Process, People, Guidanc e & Training ▪ Allow new workflow ▪ Cross functional cooperation ▪ Compliance ▪ Cross functional cooperation ▪ Clear responsibilities ▪ Links to other processes ▪ Ease of use ▪ Fit for purpose ▪ For use across the business ▪ Enabling people to work ▪ Ease of automation ▪ Process training By following four key principles we are significantly improving our purchasing process
  • 2015 Legacy library of guidance material Level 1 Support Material 2012 2013 - 2014 Develop sector specific support material Level 2 Full automation of steps Complete integration with eTools Electronic library of knowledge 2 3 ▪ Video interviews ▪ Interactive demonstrations ▪ Fully integrated training ▪ Comprehensive guidance ▪ Best practice “Gold” examples 72% reduction in process flow map Global engagement has led to great progress
  • Implementation plan and deliverablesAchieving the right engagement……. …..led to a significant reduction in steps 24 Collaboration was the key to successful process improvement Before After SB2 SB4 72% Held a 5-day workshop in November 2012 for 36 people from different regions, sectors and functions Workshop Launched a Process Walkthrough for volunteers to syndicate the new process around the business Walkthrough Presented progress update Process Council and received green light to continue. Approvals Re-wrote the current core processes with the aim of reducing complexity and duplication Improvement
  • Process Structure Core Guidance Sector Guidance + 11th February – 22nd March 8th April – 21st May Sector: Aero Marine Nuclear Energy Global Indirect Regional Input “Streamlined and optimised” “Relevant, usable and effective” “Acknowledges sector specific requirements” We made sure the Process was global at its core but with ‘flavours’ SB4: Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 SB4: Step 1 Step 2 Step 3 Step 4 Step 5
  • • Enabling eBusiness requires global transformation of data, eTools and process • Starting from a clean sheet is unlikely: existing activity, resources and people need to be marshalled • Collaboration leads to the quickest and most effective solution that is fully bought into across the business • One size does not fit all; solutions must allow for the „flavours‟ of the business Summary