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AirFrance KLM - How to Outsource a Critical Project with Lean-Agile Procurement
- Air France KLM Group faced two major challenges: delivering a new system to improve cargo service efficiency within a short timeframe, and remodelling its vendor sourcing policy to source complete teams rather than individuals. - It used an innovative Lean Agile Procurement (LAP) approach to outsource the strategic product development, running workshops and evaluations over 8 weeks to identify and select the best external team to partner with. - This new approach allowed Air France KLM to get its complete IT team in under two months, deliver the application on time, and have the IT cargo team be about a year ahead of other teams in adopting the new sourcing model.
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AirFrance KLM - How to Outsource a Critical Project with Lean-Agile Procurement
- 1. CIPS CH Meetup AGILITYIN PROCUREMENT - JUST TALK OR REALITY?! The Air France - KLM, Cargo Truck case. Frédéric Jacques - Air France Sophie Durand - Goood! January 2021
- 2. 2 PASSENGERS MAINTENANCE CARGO AirFrance KLM Group : 6 brands / 3 activities 2 000 APPLICATIONS Mostly developed internaly
- 3. The Story Mirko Kleiner LatestEarly Adopters In Cooperation Frédéric JACQUES Lionel MASSIERA Mirko KLEINER
- 4. 2 major challengesfor Air France KLM : - Delivering within a short timeframe a new system to improve the efficiency and productivity of its door-to-door cargo services. - Remodelling the vendor sourcing policy for IT teams : sourcing complete teams rather than individuals. How to outsource a strategic product development ? 4
- 5. 5 I have amajor business goal at stake. If we bring in a new team now, is this goal endangered ? I have to ensure that the new product will integrate smoothly into the Cargo Information System I want to be sure that all contractual aspects are well understood, and that they are fair to both parties. My managing team is overwhelmed by external resource management. This has to stop ! I have a very smooth and efficient communication with the current team. I fear it won’t be the same with the new team ! I need to add new skills to my IT teams. I also need new people to inspire a stronger innovation culture.
- 6. Hackthon -Same location -2 harddays for developpers -2 days of proposal details and improvments with sales representatives LAP LAUNCH 21 Jan Alignment Workshops 25 Jan Vendors info webinar 31 Jan Evaluation Workshop 25/26 Feb Partner Choice 26 Feb Start Working 4 Mar 8 Weeks (lead time) Days with vendor Working Days Looking for True North
- 7. ‟ REX Cargo Instead ofeliminating the less promising offers, we ended up improving each proposal and choosing the best one. Eric Chaumette – Managed Delivery Centers Program Management Lean Agile Procurement is an innovative, outstanding partnership accelerator to identify and select your right team with the right people having the best fitting competences and team spirit. It took less than two months getting our complete IT team ! Something new is Dominique Guillet - Business Analyst
- 8. 8 And then ? 1year Birthday ! - Team started 2 months earlier than the initial estimation - IT Application has been delivered in due date as mentionned in L.A.P. - IT CARGO was about 1 year ahead other AF KLM Teams in moving to the new sourcing model adoption - Business and IT grew together. - Partnership proven during covid crisis - 2nd L.A.P. processed successfully for on site partnership.
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