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General presentation ADC Performance Improvement

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  • 1. General PresentationPerformance ImprovementCost reduction and process optimization Private and Confidential
  • 2. Index  Introducing ADC  ADC Project approach  ADC Proposition 2 © ADC 2013 - Strictly confidential. All rights reserved.
  • 3. About ADCADC is a consultancy firm, specialized in procurement, operations and finance. Based in Amsterdam,we are built on a team of 100+ people with domestic and global experience. Founded in 1998, ADCcontinues to deliver time bound, sustainable bottom line results for our customers. Our expertise: Multi industry Performance improvement ROI based engagement Our verticals and categories & multi category orientation model Manufacturing Process industry Industry verticals Specialist procurement, Procurement, operations and Intrinsically tied to results Technical services operations, and finance finance converged outlook. Logistics related services and solutions.  Intrusive examination; Assured return on Government and non-profit  Holistic approach. investment Healthcare Industry experience to design a Tertiary services best fit approach. Hands on: plan, structure & Complete transparency Trade execute. Deliver innovative and practical Pragmatic approach Real estate & facilities solutions. Driving sustainable CAPEX projects performance improvement Value vs. budget driven OPEX/Plant maintenance over multi year time horizon. HR & labor Category Facility management Marketing Finance & audit IT & telecommunications 3 © ADC 2013 - Strictly confidential. All rights reserved.
  • 4. Added value for your organization 22% ‘Total’ proposition results in cumulative value e inanc 20% +ADC F Expertise enables optimal value realization Results realized faster ions CO perat + AD 12% t r meen cueem nt ro r ADC P +ADC Procu 8% alone l stand Typica vings sa 2% Scenarios & Implement + Post-contract Analysis Analyse Strategy Scenarios & Optimize Implement + Post-contract Strategy Optimize Typically we see procurement functions within our customers realizing between 2 - 8% savings; Within ADC’s client base, ADC Procurement has historically realized between 6 - 12% savings; Our operational address typically result in savings of between 10 - 20% on company cost (internal and external); Our financial address ensures working capital requirement and financial process based optimizations save up to 2% on total company spend; Above we show the cumulative value realized when ADC has exercised its total proposition with clients; Significant value is lost when contracts or post optimization measures are not managed. ADC ensures this value is not just realized but alsoincreased through active strategic supplier management and continuous improvement. 4 © ADC 2013 - Strictly confidential. All rights reserved.
  • 5. Results realizedSubstantial results achieved by ADC in different sectors. Technical Process industry Health care Manufacturing services Fragrance and flavour Health care institution Oil & Gas Components industry Organization Tank storage industry Aerospace Optimization of Optimization of facility Optimization of real Sourcing and production process, Project services processes estate, maintenance, operations based procurement of raw (insourcing) and plant facility services and optimisation projects materials and maintenance nutrition in capital intensive components and industries financial structure and processes Savings of 4 million Savings of 1,2 million Savings of 15%+ on Savings of 0,8 million Euros on total cost Euros on total cost total plant / project Euros on total cost Results base of 16 million base of 6 million investments of 150 base of 4 million Euros Euros million Euros+ Euros 5 © ADC 2013 - Strictly confidential. All rights reserved.
  • 6. Cooperation between your organization and ADC  Access to the larger ADC team  Satisfaction & assurance of supply Access to ADC’s expertise in procurement, operations An experienced and diverse team to work with clients to and finance across multiple industries with segment and deliver their objectives initially and in the future to ensure competency knowledge. intimacy and continuity.  Cost  Responsiveness Full cost transparency and management of fees to ensure A team which is responsive to the clients’ needs with maximum efficiency. We operate the majority of our access through a named Partner Level Relationship. projects on a performance based remuneration basis where results drive the fees we charge.  Sustainable approach We are experts in planning phased, time bound activities  Quality & risk management which ensure sustainable performance improvement over Investment in knowledge development and the right tools short, medium and long term time horizons. and templates. E.g. developing adequately structured contracts, RFI / RFP / RFQ templates, adherence to the  Innovation ADC project methodology (based on Prince 2). A creative approach based on our experience in setting new boundaries and tailoring solutions. We never stop  Integrity thinking and learning. Complete integrity underpins our modus operandi. We are able to leverage knowledge and experience whilst  Transparency maintaining complete client and supplier confidentiality. We ensure transparent and objective methods are used for sourcing, selecting, and managing suppliers. We continuously seek to innovate and reinforce in this area and are keen proponents of web-based auctions. 6 © ADC 2013 - Strictly confidential. All rights reserved.
  • 7. Index Introducing ADC ADC Project approach ADC Proposition 7 © ADC 2013 - Strictly confidential. All rights reserved.
  • 8. Project approachThe ADC project approach has three phases; Analysis, Strategy and Execution. Depending on thescope and size of the project, lead times can vary. Project approach  Analysis phase: Conducting Phase 1 Phase 2 Phase 3 financial, procurement and Analysis Strategy Execution 3 - 5 weeks 2 – 4 weeks 2 – 8 months operational assessment in order to examine savings potential and opportunities. Creating Financial Analysis Scenario Execution Baseline(s)  Strategy phase: Establishing start points (baselines) for implementation of improvements. Jointly deciding on detailed Savings Spend Analysis Detailed Planning planning and scenario to execute. Determination  Execution phase: Executing on the Process & Implementation, decisions made in strategy phase Scenarios & Productivity go-live and Strategy in full cooperation and Analysis handover commitment. Concluding with savings determination and hand- over to ensure sustainable solutions. 8 © ADC 2013 - Strictly confidential. All rights reserved.
  • 9. Project methodologieWithin the ADC project approach, three spear points form the basis of our methodology; Finance,Procurement and Operations. Project methodology Phase 1 Phase 2 Phase 3  Within the detailed view of the Analysis Strategy Execution 3-5 weeks 2-4 weeks 2-8 months analysis phase, three streams are clearly recognisable; Finance, Procurement and Operations.  Various tools and methods are available and being used. Depending on the focus and scope of the project, usage may vary.  Depending on the outcomes of the analysis phase, strategy and execution phases start. Approach(es) taken is highly depending on joint decision making. 9 © ADC 2013 - Strictly confidential. All rights reserved.
  • 10. Project organization (1)The project organisation typically has four entities: Advisory Committee, Project Management, ProjectSupport and Segments / work packages. Within all entities, all parties have strong presence. Project key entities  The typical project organisation has four 1. Advisory Committee main entities with presence of both your  2 -3 Stakeholders (Principal) organisation as ADC:  Project leader (Principal))  Program manager (ADC) 1. Advisory / Steering Committee  Project leader (ADC) 2. Project Management 3. Project Support 2. Project Management 4. Segments / work packages 3. Project Support  Project leader (Principal) Purchasing, HR, IT, Finance  Project leader (ADC)  Senior consultant(s) (ADC)  To be determined (Principal)  2-3 project employees /  Director (ADC) data analysts (ADC) 4. Segment / work package Composition working groups Segment 1 Stakeholder (principle) Employee (ADC) Segment 2 Stakeholder (principle) Employee (ADC) Segment 3 Stakeholder (principle) Employee (ADC) 10 © ADC 2013 - Strictly confidential. All rights reserved.
  • 11. Project organization (2)It is important for decision makers and stakeholders within the organization, to show full commitment tothe project organization. Project organisation Roles & responsibilities  Make decisions to achieve project goals Advisory  Make decisions in case of escalation Committee  Mark the project phases (baseline spend, scenario, savings)  Organize lines of communication to the organization  Report on progress, problems, decisions (weekly) Project Mgmt  Report to advisory committee (weekly/every two weeks) Team  Ensure quality control  Risk management for the project  Supply data (spend, structure, costs, contracts) Data Mgmt  Supply input FTE’s, structure etc. (IT, Finance & HR)  Provide ADC with insights on policy, procedure, contracts, etc.  Approve spend analysis  Maintain contact with Project Mgmt Team  Inform about local legislation and organizational structures Purchasing  Introduce new policy and procedures (and contracts)  Supplier analysis  Apply saving initiatives  Meet targets  Implement contracts and; Segment Segment Segment Segment  Monitor supplier performance  Implement processes and procedures  Report to Principal/ADC Project Manager(s)  Maintain contact with business- and main users 11 © ADC 2013 - Strictly confidential. All rights reserved.
  • 12. Index Introducing ADC ADC Project approach ADC Proposition 12 © ADC 2013 - Strictly confidential. All rights reserved.
  • 13. ROI based engagement modelCreating value for our clients is the single greatest motivator for the work wedo at ADC. We reinforce this by ensuring our remuneration models areintrinsically tied to the delivery of goals and objectives which we had initiallyset out. This is also a testament to our track record and confidence in ourabilities to deliver time bound, sustainable performance improvement solutions.No cure no payThis represents the most attractive proposition for the majority of our clients.ADC takes the lead from the very beginning. From scoping the opportunity toestablishing the approach and identifying the goals and realising the results.The client issue or problem is almost fully outsourced to ADC. 100% of ADC’sfee is linked to the results as set out at the beginning of the assignment.Performance basedThis model is a cost plus hybrid incorporating elements of both no cure no payand the conventional consulting model. An overall estimate for the workrequired is established and a performance based bonus structure is applied toaddress the range of potential outcomes.Conventional modelThere are certain situations which require conventional billing to be the modeof remuneration and settlement. Although this is normally driven by clientpreference we ensure targets are clearly articulated at the start and progresstracked rigorously ensuring both expectations and commitments are met. 13
  • 14. References 14 © ADC 2013 - Strictly confidential. All rights reserved.
  • 15. ContactADCKoninginneweg 201075 CX AmsterdamT: +31 (0)20 – 5709100E: info@adcpi.nlW: www.adcpi.nl May 2010