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Overview: Procurement Operations Can Include Multiple Functions
3
CONFIDENTIAL
Procurement &
Category
Management
Strategic Sourcing
Contract
Management
Supply Chain
Purchasing process / Systems (approval, buying, payables)
Category RFX (Request for Proposals or Information)
Ongoing purchasing / day-to-day contract negotiations
Ongoing vendor management (pricing, renewals, SLA)
Purchasing channels (P-card, e-procurement, punch out)
Category reviews
Long-range vendor / market strategy
Strategic / high value contract negotiations
Internal consulting / internal partnerships
Total Cost of Ownership management (reductions)
Contract approval process (authority matrix, process, terms)
Repository / retention
Standardized agreements and terms and conditions
Notification of termination dates
Legal risk mitigation / acceptance
Demand Forecasting / Ordering process
Logistics management (timing, scheduling,)
Inventory Management (warehousing, demand planning,
cycle-time and lead-time reductions)
Service level agreement management
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Tuesday, August 11, 2015
Procurement and Supply Chain Assessment Will Cover 3 Components
Components of Assessing Capability, Process and Systems
Procurement, Sourcing and Supply Chain Capability
Analysis (RFP comparisons, buy vs. build, cost-benefit analysis)
Negotiations (Strategies, planning, tactics)
Demand Planning (partner with project mgt., finance, and business stakeholders to plan equipment and
materials needed)
Contract Management (Strength of contracts, repository, and key terms and conditions)
Process Management (Building, fixing, and maintaining processes)
Vendor Management (key vendor performance metrics)
Procurement and Sourcing Processes
Controls (checks and balances)
Guidelines and Policies (for purchasing decision making and protecting business needs)
Efficacy (Does the end result match the desired outcome for Quality, Cost, Reliability…?)
Efficiency (Does the process flow smoothly with few delay? Where are bottlenecks and key decisions points)
Procurement and Supply Chain Systems
Do systems mirror process?
Do systems accelerate, provide flexibility, provide controls?
Is there automation of Purchase Order and Expense Requisition approvals?
How structured is the Procure to Pay process? How seamless is it?
Does system inventory count match manual inventory count?
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CONFIDENTIAL
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CONFIDENTIAL
8/11/2015
Strategic Sourcing Planning Overview
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STRATEGIC
SOURCING
PLANNING
OBJECTIVE: Assess, identify and implement long term plans
to control expenses and improve quality (TCO reductions)
Key Deliverables
• Sourcing / market strategy (3 – 5 year plan)
• Road map to managing vendors and categories
• Analyses and supporting documentation
• Initial RFPs and contract negotiations support
• Metrics to track progress
• Operational expense review
• Contract and pricing reviews
• Market dynamics assessment
• Supply chain and sourcing process assessment
• Develop opportunities to leverage sourcing processes
• Prioritize and implement strategic and tactical initiatives
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CONFIDENTIAL
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Process Steps For Strategic Sourcing Initiatives
CONFIDENTIAL
7
Steps
Objectives • Develop understanding of
supply and market dynamics
• Assess procurement
practices
• Assess market and
operational drivers
• Develop ideas for
competitive advantages
• Refine and analyze spend
analysis
• Develop strategic sourcing
plans
• Generate and evaluate
sense of market from
general manager and
supplier workshops
• Assess market reception to
new ideas (RFI)
• Assess or develop suppliers
• Set action plans and owners
for each initiative
• Initiate development of
communication plan
• Prioritize initiatives
• Develop request for proposals
(RFP)
• Develop tracking mechanisms
• Negotiate and finalize
contracts
• Follow through with action
plans
• Finalize communication plan
Key tools and
end products
• Operations spend analysis
• Total cost of ownership build
up
• Supply market analysis
• Stakeholder and supplier
workshop preparation
• Internal stakeholder
workshops
• Supplier workshops
• Sourcing strategy
• Executive list of potential
suppliers
• Supplier qualification
• Supplier short-list
• Action plans for each
stakeholder
• RFP and evaluation criteria
• Negotiation strategy
• Supplier selection
• Implementation plan
• Revisions to budget and forecast
• Balance category scorecard
• Initiative scorecard
• Communication plan
Assessment
Determine strategies
and tactics
Create supplier
portfolio and stakeholder
action plans
Go to Market
and tracking
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Tuesday, August 11, 2015
Steve Mayer
Highly Collaborative Operations, Procurement and Sourcing Consultant
Leads, facilitates and delivers sustained growth using strengths in process streamlining, strategic sourcing, and
continuous improvement. Optimizes costs while improving quality. Successful in driving operational and financial
improvements including more than $1B in annual savings. Kellogg MBA.
Procurement and Strategic Sourcing
• Develops and implements category and market strategy
• Drives reductions in Total Cost of Ownership
• Negotiates large strategic agreements and contracts
• Plans and optimizes supply chain
• Implements contract and sourcing systems
• Builds center-led sourcing and procurement teams
• Nurtures vendor relationships and performance
• Builds sound financial analytical models
Transformation
• Establishes and streamlines process
• Improves customer retention and satisfaction
• Standardizes procedures - implements best practices
• Leads and partners to plan and implement change
• Develops and nurtures strategic partnerships
KEY STRENGTHS
PROFESSIONAL EXPERIENCE INCLUDES
• Operational Consultant
• Regional Vice President of Operations: Career Education Corporation
• Director of Strategic Sourcing: Career Education Corporation
• Vice President Financial Planning and Analysis: Bally Total Fitness
• Managing Director Strategic Sourcing: United Airlines
• Managing Director Corporate Real Estate: United Airlines
North Branch Consulting LLC
