Sourcing And Procurement Practice 5 2011
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Sourcing And Procurement Practice 5 2011

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High level overview of Archstone Consulting\'s Sourcing and Procurement Practice. May 2011

High level overview of Archstone Consulting\'s Sourcing and Procurement Practice. May 2011

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    Sourcing And Procurement Practice 5 2011 Sourcing And Procurement Practice 5 2011 Presentation Transcript

    • Sourcing and Procurement Practice Overview
      Archstone Consulting
      Archstone Consulting, a Hackett Group company
      May 2011
    • The Hackett Group – Who are we?
      Our client list includes over 2,700 companies
      The global leader in enterprise G&A best practice insight and organizational effectiveness
      We understand how the best do it, where they do it and the benefit of doing it
      Implementation advice comes from over 4,000 benchmark studies
      We address both efficiency and effectiveness including strategic business enablement
      Our efforts have delivered over
      $90 billion in sustainable cost savings
      $25 billion of improved cash flow benefits
      Delivery of actionable solutions through
      Benchmarking
      Business Consulting
      Functional and Process Advisory programs
      Technology implementation services
      88%of the Dow Jones Global Titans
      45%of the FTSE 100
      97%of the Dow Jones Industrials
      35% of the CAC 40
      73%of the DAX 30
      73%of the Fortune 100
    • Archstone Consulting, a Hackett Group company, is a Recognized Leader in Sourcing and Procurement
      • Global team of 50+ Procurement professionals
      • Serving a portfolio of the world’s leading companies
      • Procurement services focused on driving accelerated value:
      • Procurement transformation & organization design
      • Spend & opportunity analysis
      • Strategic sourcing & outsourcing advisory
      • Category management support
      • End-to-end Procure-to-Pay (P2P) Process improvement
      • Widely recognized for our Procurement expertise:
      • On the Board of the Sourcing Interests Group (SIG)
      • Selected to Brown-Wilson Group’s The Black Book of Outsourcing’s Top Ten “Boutique Outsourcing Advisory” list
      • One of the “World’s Best Outsourcing Advisors” as rated by IAOP™
      • Extensive experience in developing innovative solutions to the complex issues facing the CPO
      • Over $15B sourced with $2B+ of savings (~13%)
    • Hackett Value Grid™ − the foundation for how Hackett defines world-class performance
      Hackett Procurement Value Grid™
    • Defining Procurement“Process” view versus “organizational”
      Operations & Compliance
      Sourcing & Supplier Management
      Planning & Strategy
      • Supply Data Management
      • Supplier master management
      • Item master/content management
      • Catalog management
      • Contract master management
      • Requisition and PO Processing
      • Requisition processing
      • Purchase order processing
      • Requisition and purchase order support
      • Supplier Scheduling
      • Supply requirements review
      • Supplier scheduling
      • Order release
      • Inbound tactical supply management
      • Delivery coordination
      • Receipt Processing
      • Materials and goods
      • Services
      • Compliance Management
      • Internal Compliance Management
      • External Compliance
      • Customer Management
      • External Customer Management
      • Internal Customer Management
      • Product Development and Design Support
      • Sourcing Execution
      • Requirements definition and supplier bidding
      • Negotiation and supplier contract creation
      • Supplier Management and Development
      • Supplier Management
      • Supplier Partnering
      • Function Strategy and Performance Management
      • Strategic and operational planning
      • Sourcing and Supply Base Strategy
      • Sourcing and Supply Base data gathering
      • Sourcing and Supply
      Management & Administration
      • Function Management
      • Function oversight
      • Personnel management
      • Policy and procedures oversight
    • Designing and Executing an Optimized Service Delivery Model The key to World-Class performance
      Enterprise Strategy
      G&A Performance
      WORLD CLASS
      HIGH
      World Class
      EFFECTIVENESS
      Drivers
      1D
      1Q
      EFFECTIVENESS
      Short and long-
      term enterprise strategies
      World ClassEFFICIENCY
      HIGH
      LOW
      1Q
      1D
      EFFICIENCY
      A Procurement Service Delivery Strategy defines the plan and delivery model for determining the who, where, what, why and how for the execution of all Procurement processes in support of the enterprise’s goals and objectives
    • A Multi-Faceted Procurement Process Design Model
      Procurement Strategy
      Strategy Alignment
      Governance
      Performance Mgmt
      Portfolio Analysis
      Strategic Category Management
      Demand & Compliance Management
      CategoryPerformance Management
      Category Strategy
      Category Stratification
      CategoryGovernance
      Supplier Relationship Management
      Supplier Stratification
      SRMGovernance
      SRM Performance Mgmt
      Supplier Development
      Systems  Data  Organization
      Risk Management
      Ongoing Risk Management and Mitigation
      Visibility / Monitoring
      Risk Model Definition
      Supply Chain Management
      Inventory Management
      Operations Management
      Design
      Planning
      Delivery
      Strategic Sourcing
      ProfileCategory
      DevelopSourcing Strategy
      IdentifySuppliers
      Evaluate Suppliers
      Monitor & Manage
      Negotiate
      Transition
      Procurement Operations
      Requisition Management
      PO Management
      Receiving
      Payment
    • Our Sourcing and Procurement Practice is Based on a View that Procurement is a Strategic Enabler for our Clients
      The “Tenets” of our Sourcing and Procurement Practice:
      • Transformational view
      • Strategy and role in the business
      • Organization and capability development
      • Understanding of procurement technologies
      • Outsourcing leadership from strategy to execution
      • Deep category knowledge and expertise
      • Focus on delivering immediate and lasting value
      • Willingness to tie our fees to our performance
      Organization Design
      ProcurementStrategy
      • Organization Design and Implementation including
      • Roles and Responsibilities Definition
      • Capability Assessment, Development, Training and Education
      • Department Operations (Office of the CPO)
      • Change Management
      • Performance Metric Design
      • Procurement and Supply Functional Strategy Definition/Alignment with Overall Business Strategy including defining the role of
      • Cost, Marketing and/or Innovation Focus
      • Central Procurement Department
      • Role of Functional Centers
      • Consortium, Exchanges
      Strategic
      Sourcing
      Category
      Management
      Technology-enablement
      Department
      Operations
      Outsourcing
      Strategy
      and Execution
      • eProcurement, eSourcing, Contract Management Systems Strategy
      • Procurement, Contract Management, Sourcing and Transactional Process Design
      • Systems Selection and Implementation Support
      • Outsourcing Opportunity Assessments
      • Various functional and business areas
      • Outsourcing Contract Negotiations
      • SLA Development
      • Designing Processes and Supporting Systems to Manage Procurement and Sourcing Department Operations
      • Spend Analysis and Opportunity Diagnostic
      • Process Development and Training
      • Strategic Sourcing
      • Low Cost Country Sourcing (LCCS)
      • Category/Sourcing Group Definition
      • Sourcing Group Strategy Development
      • Category Action Plan Development
      • Supplier Relationship Management
      • Ongoing Execution Management
    • We Maintain a Library of Category-specific Best Practices, Benchmarks, and Templates for use in Client Projects
      Sample Category Expertise:
      Category Sourcing Profiles
      • Advertising
      • Call Center Services
      • Facilities Repair & Maintenance
      • Hardware (e.g., bolts, screws, etc.)
      • IT Hardware
      • IT Software
      • Janitorial Services
      • Landscaping Services
      • Leased Fleet
      • Legal
      • Machined Parts
      • Management Consulting
      • MRO Supplies
      • Marketing
      • Office Equipment & Supplies
      • Print Services
      • Professional Services
      • Promotional Items
      • Raw Materials (Steel, Aluminum, etc.)
      • Recruitment
      • Security Services
      • Small Package Delivery
      • Telecommunications
      • Temporary Labor
      • Transportation & Logistics (3PL, TL/LTL, Air, Ocean)
      • Travel
      • Utilities
      • Waste Removal
    • Our Consultants have Deep Experience in Delivering Results Across a Broad Variety of Direct and Indirect Spend Categories
      IT Hardware, Software and Services
      Overhead and
      Support
      Marketing and Advertising
      Capital
      Expenditures
      Manufacturing Categories
      • 3rd Party Logistics
      • Freight
      • Ground (LTL, TL, Small Parcel)
      • Air
      • Ocean
      • MRO Supplies
      • MRO Services
      • CMO
      • Travel
      • Agency
      • Air
      • Rental cars
      • Hotels
      • Office supplies
      • Transportation
      • Fuel (bulk diesel, OTR retail, fleet fueling)
      • Telecom – voice
      • Telecom – data
      • Telecom – wireless
      • Telecom – equipment
      • Servers, PCs
      • Routers, Switches
      • Software and licenses
      • Contract programming
      • Outsourcing contracts
      • Media planning and buying
      • Advertising agency
      • Direct mail
      • Commercial printing
      • Free standing inserts
      • Trade Shows
      • Promotions
      • Office equipment
      • Office furniture
      • Private Fleet
      • Facilities and Equipment
      • Engineering and Construction Services
      Direct Materials
      OutsideServices
      Facilities
      • Contract manufacturing
      • Construction services
      • Transportation
      • Third-party Logistics
      • Audit and Payment
      • Utilities
      • Janitorial
      • Building maintenance and repairs
      • Landscaping
      • Security services and personnel
      • Temporary labor
      • Consulting services
      • Research services (CROs)
      • HR services
      • Fulfillment services
      • Testing services
      • Customer service
      • Packaging (paper, corrugate, plastic)
      • Plastic (resin, molding, etc)
      • Flavors, fragrances and other additives
      • Fuel
      • Glass
      • Injection and Blow Molded Components
      • Waste removal
      • Lighting, Ballasts, Re-lamping
      • Carpet
      • Chemicals (specialty and commodity)
      • Wood
      • Electronics
      • Steel
      • Fabricated metal components
      • Private label consumer products
      • API’s
    • A Holistic Approach – Overall Transformation Methodology
      (2) Develop Recommendations
      (1) Audit Current
      State
      (3) Design Future State
      (4) Implementation
      4.1 Execute Procurement Implementation Roadmap
      1.1 Strategy Review
      1.2 Business Drivers
      3.1 Develop Procurement Implementation Roadmap and Phasing
      2.1 Refine Procurement Strategy
      Often accelerated in the transformation to derive early benefits to fund effort, build credibility
      1.3 Governance Assessment
      Recommendations
      2.2 Incorporate Procurement and Industry Best Practices into processes and Benchmark
      Strategy & Process
      3.2 Develop High-level Business Case with Prioritization
      1.4 Current Process Assessment
      4.2 Implement New Procurement Processes and Metrics
      3.3 Design new procurement processes
      3.4 Strategic Procurement Process (SPP)
      2.3 Develop Category Specific Spend Profiles and Prioritize Categories
      1.5 Spend Analysis
      Evaluate Suppliers
      AssessSuppliers
      Strategy
      ProfileCategory
      Monitor & Manage
      Transition
      Negotiate
      Sourcing
      3.6 TechnologySelection
      2.4 Review Emerging Technology and Provide High-level recommendations
      2.6 Define
      Technology Strategy/ Plan
      1.6 Existing Procurement TechnologyAssessment
      4.3 Implement New Technology Enablers
      Technology
      1.7 As-Is Organizational Assessment
      4.4 Conduct Organization Education and Training
      2.5 Define Procurement Organizational Vision and High-level Structure
      3.5 Design and Build New Procurement Organization
      Organization
      4.5 Execute Communications Plan
      1.8 Change Readiness Assessment
    • Hackett’s Sourcing and Procurement Services – Representative Clients
      Organization Design
      ProcurementStrategy
      Strategic
      Sourcing
      Category &Supplier Mgmt
      Technology-enablement
      OutsourcingStrategy and
      Execution
      Department
      Operations
    • Sourcing and Procurement - Why Hackett?
      • We offer a complete suite of servicesto meet your need to drive sustainable value through Strategic Sourcing and Procurement in a wide range of environments including Pre- and Post-merger, Transformational, Ongoing Operations, Category Management
      • We bring significant intellectual capital(templates, benchmarks, best practices, methodologies, training materials, etc) to category sourcing and spend analysis
      • We have senior, experienced staffthat can enable results both through sourcing diagnostics, and category sourcing
      • We have deep category expertisein many categories – including industry-specific categories
      • We have considerable contracting experienceand can assist with the development of beneficial contract language for the categories which we source
      • We work closely with our clients; typically on-site; in a supportive, collaborative manner that is neither intrusive or disruptive but results focused
      • We have defined operating practiceswhich can be used to train staff, effectively manage project work load and more clearly communicate with internal customers as well as suppliers
      • We are truly independentof any software provider or tool set
      Right Capabilities
      Right Resources
      Right Approach