Results Obtained
Spend and Inventory Reduced
Spend was reduced by more than 25% and carrying inventory by more than 10%.
This was done through Mr. Urillo’s recommendations of specific size and gauge
elimination while proactively managing order timing to maximize vendors manufacturing
efficiencies. This also helped the vendors by reducing their need for
change overs on their equipment to accommodate the numerous sizes and gauge
changes. There was no impact in the field as the gauge changes in some instances
were less than 0.001”. The largest gauge change recommendation was 0.003”, and
the largest size change was 0.5”.
The newspapers running a thinner or smaller product had no impact on delivery
or delivery complaints. Also, the system was changed for monitoring usage
and ordering which allowed for larger order quantities in agreed upon sizes and
gauges which gave us the maximum impact to savings. This was a major change in
the company as each newspaper became a part of the aggregated spend for the
benefit of the entire company.
The Purchase Order entry in the ERP system was changed to using Pcards for the
purchases, which provided an extra return at the end of the year of 1.5%. This
helped increase controls on the spending by issuing the cards on a product specific
basis. This kept the cards from being used on other commodities and kept the
reporting on the bags very controlled and much easier to analyze.
Artificial Intelligence in Philippine Local Governance: Challenges and Opport...
33.1.027 Global Spend Reduction Process Improvement Efficiency
1. ®
Experts in Profit Maximization & Business Growth Services
Spend Reduction, Process Improve-
ment, & Operation Efficiencies
Above the Standard Procurement Group, Inc.®, www.ATSPG.com
2. 2
Case Study - Global Contracts & NegotiationsFebruary - 2014
2
www.ATSPG.com
Mr. Bob Urillo, President Above the Standard,
Global Contracts & Negotiations
Introduction
Mr. Robert Urillo is an accomplished senior executive
with more than 25 years of experience, highly skilled in
strategic planning and execution and expertise in strategic
sourcing and transformational leadership challenges. Mr. Urillo has led organiza-
tions of more than 1,500 contractors and employees, with budgets in the hun-
dreds of millions of dollars. This has included locations, services, and contracts
globally.
Specifics
Throughout Mr. Urillo’s career, he successfully re-engineered operations and
procedures, developing effective performance objectives and implementing new
strategies that lead to successful results. His transparent leadership style pro-
motes organizational alignment and customer-focused teams. He is also an expe-
rienced strategic sales leader capable of increasing market share, advertising and
commercial printing revenues and building successful customer-centric relation-
ships.
Mr. Urillo is highly regarded by industry professionals as a thought leader and
innovation specialist. His keen ability to develop clear and sustainable financial
plans and secure new revenue sources differentiates him from others and enables
him to deliver phenomenal results, sustainable business growth and aggressive
launches of industry-leading products, services and technologies.
Project Background
At The New York Times Company owned newspapers, the products were delivered
in plastic bags every day of the week. This required a significant number of bags
to be used each day. When the variety of bags expanded to include different size
products, different delivery points, and an international vendor base the complex-
ity of this commodity grew exponentially. Mr. Urillo led the team to analyze this
commodity to significantly reduce spend and improve our overall process at the
same time. Some items that needed to be considered were:
„„ Number of sizes;
„„ Number of vendors;
„„ number of gauges; and
„„ Ordering quantities that had to be inventoried plus having to issue POs for
each transaction.
Awards & Track Record
Numerous Quality Awards
3. 3
Case Study - Global Contracts & NegotiationsFebruary - 2014
3
www.ATSPG.com
Action Implemented
Mr. Urillo worked with the reporting team to gather the necessary data surround-
ing spend in this category. This included:
Size;
Gauge;
Color;
Delivery requirements; and
Vendor.
The data was cross checked to determine that the numbers indicated was really
happening in the field. This was especially important when asking about specific
size, gauge and color bags. The New York Times was part of the Media Consortium
at the time, which provided the opportunity for Mr. Urillo to utilize other group’s
data to provide some benchmarks on these categories and then work to put
together best practice metrics to be used moving forward to improve the process.
We also examined how we were handling this spend in our ERP system and exam-
ined ways to streamline the system while keeping the necessary spending controls
in place.
Results Obtained
Spend and Inventory Reduced
Spend was reduced by more than 25% and carrying inventory by more than 10%.
This was done through Mr. Urillo’s recommendations of specific size and gauge
elimination while proactively managing order timing to maximize vendors manu-
facturing efficiencies. This also helped the vendors by reducing their need for
change overs on their equipment to accommodate the numerous sizes and gauge
changes. There was no impact in the field as the gauge changes in some instances
were less than 0.001”. The largest gauge change recommendation was 0.003”, and
the largest size change was 0.5”.
The newspapers running a thinner or smaller product had no impact on deliv-
ery or delivery complaints. Also, the system was changed for monitoring usage
and ordering which allowed for larger order quantities in agreed upon sizes and
gauges which gave us the maximum impact to savings. This was a major change in
the company as each newspaper became a part of the aggregated spend for the
benefit of the entire company.
The Purchase Order entry in the ERP system was changed to using Pcards for the
purchases, which provided an extra return at the end of the year of 1.5%. This
helped increase controls on the spending by issuing the cards on a product spe-
cific basis. This kept the cards from being used on other commodities and kept the
reporting on the bags very controlled and much easier to analyze.
4. 4
Case Study - Global Contracts & NegotiationsFebruary - 2014
4
www.ATSPG.com
Spend Savings & Revenue Increase
Over a ten year period of time, Mr. Urillo was able to save $ 175,000,000. He also
went onto increase revenues by more than $ 5,000,000 during this period of time.
Other Projects Included:
„„ Restructure of workflow system
o Vendor Development & Management
RFP
Processes
Negotiations
Purchases
Service Contracts
Maintenance Agreements
Equipment Testing
Changed Hardware to Turnkey Methodologies
Standardization for entire company
o One system centralization
„„ Human Capital and Strategy Development
„„ Global Print Presses
„„ Global Large Capital Equipment
„„ Revenue Generation
o Strategic Partners
o Business Development Staff
„„ Market Analysis
o Competitive Analysis
„„ KPI Management and Accountability
„„ Poly Bags
„„ Team Development
Sample Client List:
New York Times, Boston Globe, The Lakeland Ledger, Wilmington Star news, Hen-
dersonville Times Daily, Spartanburg Journal, Lexington Dispatch, Sarasota Herald
Tribune, Ocala Star Banner, Gainesville Sun, Tuscaloosa News, Houma, Florence,
Santa Rosa Press Democrat, Wilson Times, The Step Saver, Hartford Courant,
Worcester Telegram and Gazette, International Herald Tribune, Wall Street Jour-
nal, Gannett (owns more than 200 newspapers, such as USA Today and others),
McClatchy, Advanced Publications (owned by New House Family), and the Ob-
server.