Sales perception & procurement approach by Reza Hagel CPO & Principle

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Sales organizations have understood how to identify the real power of procurement and map how to plan the sales process and manage the relationships across the organization to improved margins.

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Sales perception & procurement approach by Reza Hagel CPO & Principle

  1. 1. Missing Bricks for Value Creation Sales organizations have understood how to identify the real power of procurement and map how to plan the sales process and manage the relationships across the organization to improved margins. Price TCO ROI Focused Focused Focused Overhead Process Cost Specifications & Operations Relationship with stakeholders How align is procurement with stakeholders? Managing the administration of the buying process Managing the procurement project costs and ad-hoc support on demand Early Involvement At what time during the buying process is procurement involved? Buying Process Does procurement use a category management approach? Spend Visibility Does procurement follow CapEx & OpEx evolution? Late involved after stakeholder requirements & targets are set. Supporting stakeholder in sourcing methods and project execution No formal category management function Category Management with internal focus. Limited category expertise No OpEx & CapEx visibility Visibility and centralization of spend. Procurement managing less than 65% of spend Stakeholders driving supplier relationships. Multi-channel communications where procurement is a bi-role Measured on yearly (PPV) Purchase price variation savings Main KPIs – PPV, TCO reduction & customer satisfaction Decentralized and highly fragmented. Head of procurement reporting to finance director Centralized structure by Group & national organization. Direct Reporting line to CFO Not involved after contract kickoff No formal performance management approach. Supporting stakeholders with ad-hoc vendor performance issues No assessment of supplier capacity & capability… Mapping and analysing supplier capacity & capability and aligning those with business objectives Supplier Relationship management Who is driving the communication channel? Procurement Performance metrics What are the procurement KPIs? Organization & Reporting How the department is structured & where does the function report to? Supplier performance management What is the procurement responsibilities in the continuous supplier performance? Supplier Portfolio management Joint market development Early involvement during concept planning, tight and align relationship to jointly plan and create value Supporting stakeholder as a member of cross functional team, supporting project specifications & targets Expert category knowledge with up to date market & trends insights Acting on CapEx & OpEx deviations and company revenue.. +65% of spend through vendor base Engage supplier by on-going events & workshops, to align business and drive growth Main KPIs - realized cost savings, Working capital reduction. Customer & Stakeholder satisfaction Centralized and decentralized structure by Group/regional/national organization. Direct Reporting line to CEO Lead the performance management process with objective to root cause problem resolution. Conducting regular performance meetings. Mapping and analysing supplier capacity & capability, driving innovation and using the vendor performance for business application & portfolio positioning Page 13

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