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1. Cost Management &
Reduction
1 Dollar Saved
Is
1 Dollar Earned
1 Dollar Saved
Is
1 Dollar Earned
So, How Much Worth Then is $1 Saved?
https://youtu.be/A3Y717zsFcI?t=9s
Another Example of 1 Euro Saved!
2. Operational Supply Chain &
Supplier Efficiencies
• Sourcing Process
• On time deliveries/minimizing contract
changes & delays
• Inventory & Warehouse Efficiency
• Stronger Supplier Relationships
3. People Effectiveness
• The major problem is the confusion between
effectiveness & efficiency that stands between
doing the right things and doing things right.
• There is surely nothing quite so useless as
doing with great efficiency what should
not be done at all.
• Peter Drucker – The Effective Executive
How Much Can We Genuinely
Save/Reduce Costs?
Savings For Companies That Start a
Strategic Cost Reduction Initiative
As reported by McKinsey & Company
70% of
Organisations
Achieve
5% to 20%
Savings
Potential Cost Savings With a Fully
Effective & Well Trained Team?
Total Cost
30 Billions*
5% Savings
1.5 Billion
3% Savings
900 Mil
1% Savings
300 Mil
How To Building a Fully Competent
Supply Chain Team?
Competence Maps
14
15
Step 2
Do a Gap Analysis
16
PDP - Senior Buyers Module No.
Jan-14 Specifications + Stakeholder Mgt 2
Apr-14 Strategic Sourcing 9
May -14 MRO, Inventory & Warehouse Mgt 16 hours
Jun-14 Implementing Strategic Sourcing 16 hrs
Jul-14 Winning Negotiations 6
Sep-14 Negotiation Preparations 16 hrs
Oct-14 Contract Termss + NDA + Incoterms 3
Jan-15 Ll Issues in Purchasing 5
Mar-15 Commercial Contract Terms 16 hrs
Apr-15 E-Sourcing 1
Jul-15 Contract Management 6
Jul-15 Materials Management 16 Hours
Sep-15 Contract Admin & Management 16 hrs
Oct-15 E-Procurement 1
Jan-16 Finance for Non-Finance 5
Apr-16 Total Cost Management 5
Jun-16 Cost, Price & TCO 21 hrs
Sep-16 Intro to Category Management 2
Nov-16 Final Assessment 1
3. Build Individual Development Blended Learning
Program Based on Job Roles To Fill the Gap
Operational Buyer/
Procurement Support
Buyer/Procurement
Exec/Asst Manager
Senior Buyer/Procurement
or Contracts Manager
Category Manager
Procurement Sr.
Manager/Director
17
Building A Pipeline of Existing& New Incoming Talents
Clear Learning & Career Development Path
Pilot Project:
Show the Full Approach to Build Team Skills
& Competences WITHOUT any financial
commitment:
MODULES Name Job Title
Telephon
e
Number
Mobile
Numbe
r
Email
PROCURE
MENT
Abdulaziz
Mohammed
Al saeed
General Materials
Purchasing Division
Manager
8079548
505407
909
AMAlSaeed
@se.com.sa
SUPPLY
CHAIN
Bader Fahd
Al-Dossary
Distribution Inventory
Planning Division
8079167
503019
111
BFDosari@
se.com.sa
SUPPLY
CHAIN
Suhail Yosef
Al ali
Eastern Province
Warehouse Division
Manager
3858613
4
504983
144
syALI@se.c
om.sa
Pilot Project:
Role Group - Role Group A - Inventory Planning Group B - Warehousing
Example of Related Functions Inventory Planning Division Manager Warehouse Division Manager
01. Inventory Control Level 4 : Expert Level 3 : Practitioner
02. Supply Planning Level 4 : Expert Level 3 : Practitioner
03. Demand Planning Level 3 : Practitioner Level 3 : Practitioner
04. Transportation Level 1 : Awareness Level 2 : Understanding
05. Order Management Level 2 : Understanding Level 3 : Practitioner
06. Warehousing Level 2 : Understanding Level 4 : Expert
07. Manufacturing Level 1 : Awareness Level 2 : Understanding
08. Procurement Level 2 : Understanding Level 2 : Understanding
09. Legal Level 1 : Awareness Level 1 : Awareness
10.Foundation Level 1 : Awareness Level 1 : Awareness
11. Project Management Level 1 : Awareness Level 1 : Awareness
01. Inventory Control90 75
01. Inventory
Control
02. Supply Planning
03. Demand
Planning
04. Transportation
05. Order
Management
06. Warehousing07. Manufacturing
08. Procurement
09. Legal
10.Foundation
11. Project
Management
01. Inventory Control
02. Supply Planning
03. Demand Planning
04. Transportation
05. Order
Management
06. Warehousing07. Manufacturing
08. Procurement
09. Legal
10.Foundation
11. Project
Management
22
They Took the Online Assessment &
Sample E-Learning Plans
Feedback
It gives me wide information about main activities in supply
chain which help in discussing work improvement with
others
 Simple way of learning, - [good] Diversity of examples & Q
& A for each course
 easy to understand the content by examples and charts -
doing quick check questions during the course
The support handout are can be kept as reference
23
Why Blended Learning?
(Cutting Edge E-learning, simulations,
application based tasks, class trainings)
24
What’s Wrong with Using Traditional Trainings As
The Only Method?
25
26
Application
Retention
7 Steps To Applying Learning & Making it Stick
Consistent Follow Up Training
Increasingly Application & Learner Focused
1. High Impact E-Learning
2. Built In Notes/Summary in PDF
3. Online Exercises & Quizzes
4. Refresher Courses
5. Simulations
6. Application Based Tasks
7. Classroom/Face to Face Trainings
27
High Impact & Effortless E-Learning
• Strong Visuals
• Superior Scripting
• Same Character
same face, same color of shirt…
• Scenario based – learners observe and apply
• Limited info/text on screen
• Simultaneously Target Audio & Visual Brain
• Over 90% of learners highly satisfied
28
Built In Notes/Summary
29
Built In Notes/Summary
30
Online Exercises & Quizzes
31
Refresher Courses
32
From 5 Hours
& 15 Mins to
25 Mins
Refresher Courses
33
From 5 Hours
& 15 Mins to
25 Mins
Refresher
Courses
Simulations
34
Simulations
35
Simulations
36
37
• In the online Assignments, we are building on what people have learned in their
previous High Impact eLearning courses and Simulations.
• Learners have to complete a task, like “shadow a negotiation event and write an essay
analyzing the negotiation”.
• Learners upload their essay document directly on LMS.
• The direct line manager is requested to give feedback and to evaluate / validate.
• Like High-Impact E-learning and Simulations, Assignments are a unique product.
Online Assignments/Tasks
38
• In the online Assignments, we are building on what people have learned in their
previous High Impact eLearning courses and Simulations.
• Learners have to complete a task, like “shadow a negotiation event and write an essay
analyzing the negotiation”.
• Learners upload their essay document directly on LMS.
• The direct line manager is requested to give feedback and to evaluate / validate.
• Like High-Impact E-learning and Simulations, Assignments are a unique product.
Designed to match the 70-20-10 approach.
Increasing Retention & Application
Application Based
Task
Classroom Trainings
39
Questions & Answers
Participative
Exercise Focused
Making Learning Stick
40
Questions & Answers
Classroom Trainings
41
Why Continuous Program?
2 to 3 years
42
Why Continuous Program?
2 to 3 years
1. Continuous Learning provides with the knowledge, skills, attitudes and
values that an employee need to have to perform effectively and
competently in his/her role and to meet the expectations placed on by the
company/organization.
2. Methodical and structured approach to learning leading to a planned
approach to skills development tend to move up the career ladder more
quickly and in a direction of their choosing.
43
Other Potential Providers
Bottom Line
*For In-House Training Flight (USD 3,000 per training), accommodation (USD 1,500 per training)
of expert instructor not included. Also not included are miscellaneous expenses (USD 1,500 per
training) - Visa, out of pocket, course materials printing & shipment.
** Overall total includes the whole E-Learning Suite, plus 6 in-house training sessions of 3 days
each and 1 public training program (4 or 5 days) for 90 people. Excluding USD 9,990 set up LMS
& CMC Personalised & Branded Portals
COMMERCIAL PROPOSAL:
FOR SETTING UP, DESIGNING & FULLY IMPLEMENTING SUPPLY CHAIN & PROCUREMENT ACADEMY FOR SAUDI ELECTRICITY
INVESTMENT FEES IN USD - UNITED STATES DOLLARS
PART 1 - PRODUCTS & SERVICES THAT REQUIRE INVESTMENTS PER LEARNER
PART 1-1A. E-Learning Suite LicensePer Learner Per Year Including Built In Exercises & Assessments for Each Competence
Total Number of Learners 15 30 50 90 150 250
PART1-1A-1
E-Learning License per Year Including Built In Exercises &
Assessments for Each Competence
1,895 1,825 1,750 1,625 1,445 1,245
PART1-1A-2 Simulations 295 285 275 265 250 Free
PART1-1A-3 Short Application Based Task/Assignment 195 185 175 165 Free 125
Regular Investment Total per Learner Per Year - Normal Price 2,385 2,295 2,200 2,055 1,695 1,370
Total Investment Per Group 35,775 68,850 110,000 184,950 254,250 342,500
PART 1-1B. Full Program Management Per Learner Per Year
Total Number of Learners 15 30 50 90 150 250
Full Program Management Including Monthly & Quarterly Reporting, Learner
Follow Up & Ensuring 99% Completion Rate
295 295 295 295 295 295
Investment Per Group 4,425 8,850 14,750 26,550 44,250 73,750
PART 1-1C. Assessment & Gap Analysis - One Time Fee Per Learner
Total Number of Learners 15 30 50 90 150 250
Online Assessment, Gap Analysis Report & Tailored learning plan per role. 295 265 225 195 155 Free
Investment Per Group 4,425 7,950 11,250 17,550 23,250 Free
PART 2 -SERVICES & PRODUCTS THAT REQUIRE ONE TIME FIXED INVESTMENTS FEE
Item Product / Service
Regular
Investment
PART2-A Competence Management Center (CMC) Portal - Personalised Assessment, Logo, Message 4,995
PART2-B Learning Management System (LMS)/Branded Portal - Logo, Welcome Message etc. 4,995
PART2-C1 Design of Competence Based Job Maps, Descriptions & Job Role Definitions Up to 5 job roles 7,995
PART2-C2 Design of Job Maps, Descriptions & Job Role Definitions 6 to 10 job roles at USD 9,995
PART2-C3 Design of Job Maps, Descriptions & Job Role Definitions 10 to 20 job roles at USD 14,995
PART2-D Kick Off Meeting Webinar/Conference Call - Up to 5 Calls/Meetings 1,995
TOTAL 19,980
PART 3 - FACE TO FACE TRAINING
PART 3A In-House Training
Daily Fee in
USD
No of Days
No of
Sessions*
Total in
USD
Average
Savings
Based on
Regular Fee
In-House Training - 1 Session Per Year 5,800 3 1 17,400 0
In-House Training - 5 Sessions Per Year 5,400 3 5 81,000 6,000
In House Training - 10 Sessions Per Year 4,900 3 10 147,000 15,000
3B.
Public Trainings (Saudi, UAE, Malaysia)
The
Discounted
Fee in USD
Per Person
2 days 4 days 5 days Discount in %
Regular Fee 2,495 4,990 5,995 0%
For 1 person attending 1 training 1,871 3,743 4,496 25%
For 2 to 5 People Attending the Same Training 1,672 3,343 4,017 33%
For 6 to 8 People Attending the Same Training 1,422 2,844 3,417 43%
Remember Potential Cost Savings?
Total Cost
5 Billions*
5% Savings
250 Million
3% Savings
150 Mil
1% Savings
50 Mil
Effect on Profit of These Cost Savings
2014/2015 Profit
= 20% Margin
1 Billion
Total Potential
Savings 1%
50 Million
Potential Profit
Increase
5%
Cost Reduction and Supply Chain Optimization Academy
Cost Reduction and Supply Chain Optimization Academy

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Cost Reduction and Supply Chain Optimization Academy

  • 1.
  • 2. 1. Cost Management & Reduction
  • 3. 1 Dollar Saved Is 1 Dollar Earned
  • 4. 1 Dollar Saved Is 1 Dollar Earned
  • 5. So, How Much Worth Then is $1 Saved? https://youtu.be/A3Y717zsFcI?t=9s
  • 6. Another Example of 1 Euro Saved!
  • 7. 2. Operational Supply Chain & Supplier Efficiencies • Sourcing Process • On time deliveries/minimizing contract changes & delays • Inventory & Warehouse Efficiency • Stronger Supplier Relationships
  • 9. • The major problem is the confusion between effectiveness & efficiency that stands between doing the right things and doing things right. • There is surely nothing quite so useless as doing with great efficiency what should not be done at all. • Peter Drucker – The Effective Executive
  • 10. How Much Can We Genuinely Save/Reduce Costs?
  • 11. Savings For Companies That Start a Strategic Cost Reduction Initiative As reported by McKinsey & Company 70% of Organisations Achieve 5% to 20% Savings
  • 12. Potential Cost Savings With a Fully Effective & Well Trained Team? Total Cost 30 Billions* 5% Savings 1.5 Billion 3% Savings 900 Mil 1% Savings 300 Mil
  • 13. How To Building a Fully Competent Supply Chain Team?
  • 15. 15 Step 2 Do a Gap Analysis
  • 16. 16 PDP - Senior Buyers Module No. Jan-14 Specifications + Stakeholder Mgt 2 Apr-14 Strategic Sourcing 9 May -14 MRO, Inventory & Warehouse Mgt 16 hours Jun-14 Implementing Strategic Sourcing 16 hrs Jul-14 Winning Negotiations 6 Sep-14 Negotiation Preparations 16 hrs Oct-14 Contract Termss + NDA + Incoterms 3 Jan-15 Ll Issues in Purchasing 5 Mar-15 Commercial Contract Terms 16 hrs Apr-15 E-Sourcing 1 Jul-15 Contract Management 6 Jul-15 Materials Management 16 Hours Sep-15 Contract Admin & Management 16 hrs Oct-15 E-Procurement 1 Jan-16 Finance for Non-Finance 5 Apr-16 Total Cost Management 5 Jun-16 Cost, Price & TCO 21 hrs Sep-16 Intro to Category Management 2 Nov-16 Final Assessment 1 3. Build Individual Development Blended Learning Program Based on Job Roles To Fill the Gap
  • 17. Operational Buyer/ Procurement Support Buyer/Procurement Exec/Asst Manager Senior Buyer/Procurement or Contracts Manager Category Manager Procurement Sr. Manager/Director 17 Building A Pipeline of Existing& New Incoming Talents Clear Learning & Career Development Path
  • 18. Pilot Project: Show the Full Approach to Build Team Skills & Competences WITHOUT any financial commitment:
  • 19. MODULES Name Job Title Telephon e Number Mobile Numbe r Email PROCURE MENT Abdulaziz Mohammed Al saeed General Materials Purchasing Division Manager 8079548 505407 909 AMAlSaeed @se.com.sa SUPPLY CHAIN Bader Fahd Al-Dossary Distribution Inventory Planning Division 8079167 503019 111 BFDosari@ se.com.sa SUPPLY CHAIN Suhail Yosef Al ali Eastern Province Warehouse Division Manager 3858613 4 504983 144 syALI@se.c om.sa Pilot Project:
  • 20. Role Group - Role Group A - Inventory Planning Group B - Warehousing Example of Related Functions Inventory Planning Division Manager Warehouse Division Manager 01. Inventory Control Level 4 : Expert Level 3 : Practitioner 02. Supply Planning Level 4 : Expert Level 3 : Practitioner 03. Demand Planning Level 3 : Practitioner Level 3 : Practitioner 04. Transportation Level 1 : Awareness Level 2 : Understanding 05. Order Management Level 2 : Understanding Level 3 : Practitioner 06. Warehousing Level 2 : Understanding Level 4 : Expert 07. Manufacturing Level 1 : Awareness Level 2 : Understanding 08. Procurement Level 2 : Understanding Level 2 : Understanding 09. Legal Level 1 : Awareness Level 1 : Awareness 10.Foundation Level 1 : Awareness Level 1 : Awareness 11. Project Management Level 1 : Awareness Level 1 : Awareness 01. Inventory Control90 75 01. Inventory Control 02. Supply Planning 03. Demand Planning 04. Transportation 05. Order Management 06. Warehousing07. Manufacturing 08. Procurement 09. Legal 10.Foundation 11. Project Management 01. Inventory Control 02. Supply Planning 03. Demand Planning 04. Transportation 05. Order Management 06. Warehousing07. Manufacturing 08. Procurement 09. Legal 10.Foundation 11. Project Management
  • 21.
  • 22. 22 They Took the Online Assessment & Sample E-Learning Plans Feedback It gives me wide information about main activities in supply chain which help in discussing work improvement with others  Simple way of learning, - [good] Diversity of examples & Q & A for each course  easy to understand the content by examples and charts - doing quick check questions during the course The support handout are can be kept as reference
  • 23. 23 Why Blended Learning? (Cutting Edge E-learning, simulations, application based tasks, class trainings)
  • 24. 24
  • 25. What’s Wrong with Using Traditional Trainings As The Only Method? 25
  • 27. 7 Steps To Applying Learning & Making it Stick Consistent Follow Up Training Increasingly Application & Learner Focused 1. High Impact E-Learning 2. Built In Notes/Summary in PDF 3. Online Exercises & Quizzes 4. Refresher Courses 5. Simulations 6. Application Based Tasks 7. Classroom/Face to Face Trainings 27
  • 28. High Impact & Effortless E-Learning • Strong Visuals • Superior Scripting • Same Character same face, same color of shirt… • Scenario based – learners observe and apply • Limited info/text on screen • Simultaneously Target Audio & Visual Brain • Over 90% of learners highly satisfied 28
  • 31. Online Exercises & Quizzes 31
  • 32. Refresher Courses 32 From 5 Hours & 15 Mins to 25 Mins
  • 33. Refresher Courses 33 From 5 Hours & 15 Mins to 25 Mins Refresher Courses
  • 37. 37 • In the online Assignments, we are building on what people have learned in their previous High Impact eLearning courses and Simulations. • Learners have to complete a task, like “shadow a negotiation event and write an essay analyzing the negotiation”. • Learners upload their essay document directly on LMS. • The direct line manager is requested to give feedback and to evaluate / validate. • Like High-Impact E-learning and Simulations, Assignments are a unique product. Online Assignments/Tasks
  • 38. 38 • In the online Assignments, we are building on what people have learned in their previous High Impact eLearning courses and Simulations. • Learners have to complete a task, like “shadow a negotiation event and write an essay analyzing the negotiation”. • Learners upload their essay document directly on LMS. • The direct line manager is requested to give feedback and to evaluate / validate. • Like High-Impact E-learning and Simulations, Assignments are a unique product. Designed to match the 70-20-10 approach. Increasing Retention & Application Application Based Task
  • 39. Classroom Trainings 39 Questions & Answers Participative Exercise Focused
  • 40. Making Learning Stick 40 Questions & Answers Classroom Trainings
  • 42. 42 Why Continuous Program? 2 to 3 years 1. Continuous Learning provides with the knowledge, skills, attitudes and values that an employee need to have to perform effectively and competently in his/her role and to meet the expectations placed on by the company/organization. 2. Methodical and structured approach to learning leading to a planned approach to skills development tend to move up the career ladder more quickly and in a direction of their choosing.
  • 44. Bottom Line *For In-House Training Flight (USD 3,000 per training), accommodation (USD 1,500 per training) of expert instructor not included. Also not included are miscellaneous expenses (USD 1,500 per training) - Visa, out of pocket, course materials printing & shipment. ** Overall total includes the whole E-Learning Suite, plus 6 in-house training sessions of 3 days each and 1 public training program (4 or 5 days) for 90 people. Excluding USD 9,990 set up LMS & CMC Personalised & Branded Portals
  • 45. COMMERCIAL PROPOSAL: FOR SETTING UP, DESIGNING & FULLY IMPLEMENTING SUPPLY CHAIN & PROCUREMENT ACADEMY FOR SAUDI ELECTRICITY INVESTMENT FEES IN USD - UNITED STATES DOLLARS PART 1 - PRODUCTS & SERVICES THAT REQUIRE INVESTMENTS PER LEARNER PART 1-1A. E-Learning Suite LicensePer Learner Per Year Including Built In Exercises & Assessments for Each Competence Total Number of Learners 15 30 50 90 150 250 PART1-1A-1 E-Learning License per Year Including Built In Exercises & Assessments for Each Competence 1,895 1,825 1,750 1,625 1,445 1,245 PART1-1A-2 Simulations 295 285 275 265 250 Free PART1-1A-3 Short Application Based Task/Assignment 195 185 175 165 Free 125 Regular Investment Total per Learner Per Year - Normal Price 2,385 2,295 2,200 2,055 1,695 1,370 Total Investment Per Group 35,775 68,850 110,000 184,950 254,250 342,500 PART 1-1B. Full Program Management Per Learner Per Year Total Number of Learners 15 30 50 90 150 250 Full Program Management Including Monthly & Quarterly Reporting, Learner Follow Up & Ensuring 99% Completion Rate 295 295 295 295 295 295 Investment Per Group 4,425 8,850 14,750 26,550 44,250 73,750 PART 1-1C. Assessment & Gap Analysis - One Time Fee Per Learner Total Number of Learners 15 30 50 90 150 250 Online Assessment, Gap Analysis Report & Tailored learning plan per role. 295 265 225 195 155 Free Investment Per Group 4,425 7,950 11,250 17,550 23,250 Free
  • 46. PART 2 -SERVICES & PRODUCTS THAT REQUIRE ONE TIME FIXED INVESTMENTS FEE Item Product / Service Regular Investment PART2-A Competence Management Center (CMC) Portal - Personalised Assessment, Logo, Message 4,995 PART2-B Learning Management System (LMS)/Branded Portal - Logo, Welcome Message etc. 4,995 PART2-C1 Design of Competence Based Job Maps, Descriptions & Job Role Definitions Up to 5 job roles 7,995 PART2-C2 Design of Job Maps, Descriptions & Job Role Definitions 6 to 10 job roles at USD 9,995 PART2-C3 Design of Job Maps, Descriptions & Job Role Definitions 10 to 20 job roles at USD 14,995 PART2-D Kick Off Meeting Webinar/Conference Call - Up to 5 Calls/Meetings 1,995 TOTAL 19,980 PART 3 - FACE TO FACE TRAINING PART 3A In-House Training Daily Fee in USD No of Days No of Sessions* Total in USD Average Savings Based on Regular Fee In-House Training - 1 Session Per Year 5,800 3 1 17,400 0 In-House Training - 5 Sessions Per Year 5,400 3 5 81,000 6,000 In House Training - 10 Sessions Per Year 4,900 3 10 147,000 15,000 3B. Public Trainings (Saudi, UAE, Malaysia) The Discounted Fee in USD Per Person 2 days 4 days 5 days Discount in % Regular Fee 2,495 4,990 5,995 0% For 1 person attending 1 training 1,871 3,743 4,496 25% For 2 to 5 People Attending the Same Training 1,672 3,343 4,017 33% For 6 to 8 People Attending the Same Training 1,422 2,844 3,417 43%
  • 47. Remember Potential Cost Savings? Total Cost 5 Billions* 5% Savings 250 Million 3% Savings 150 Mil 1% Savings 50 Mil Effect on Profit of These Cost Savings 2014/2015 Profit = 20% Margin 1 Billion Total Potential Savings 1% 50 Million Potential Profit Increase 5%

Editor's Notes

  1. What’s Next – Say next is a round of applause for everyone here listening to me.