Short case study on boosting ROI for Procurement.

1. SELLING PROCUREMENT’S TIME
A SHORT CASE STUDY
Global Materials Manufacturer
SLIDESHARE.NET - MARCH 2016
buiitime.com

2. Business and Procurement Profile
Business Profile:
 Manufacturer of materials, operating in the major market segments of; Chemicals, Compounds Resins and
Fibers.
 Their materials are found in Consumer & Industrial Applications, Textiles, Raw Materials, Building &
Construction and Automotive.
 Global manufacturing and distribution footprint, with $1+ billion in annual sales.
Procurement Profile:
 Complex procurement and supply chain to manage, with a diverse supplier base, where most vendors are
located domestically in the U.S.
 25% of vendors comprise 75% of company spend. Procurement oversees approximately 2/3s of spend.
 Procurement Team is lead by a Chief Procurement Officer, reporting directly to the CFO.
 Team of 20 procurement professionals, including; Directors of Procurement, Procurement Mangers, Category
Managers, Analysts and Administrative Support.
 Challenge in recent years has been to not only keep improving on cost containment initiatives, but to broaden
it’s role within the organization to be more strategic in how the company sources and uses it’s resources.
 Employing various procurement tools, consultants, programs and KPIs to track the Procurement Group’s impact
on the organization.

3. Implementing BuiiTime
Procurement Process:
 Integration: BuiiTime employed as a time management and scheduling tool, where procurement personnel can
be paid for the time they spend in meetings with potential vendors.
 Target Audience: Non-Strategic Vendors, and marginal vendors who may or may not have the right
product/service solution for the organization.
 Use: Use BuiiTime as another tool to book face-to-face meetings, conference calls, or other events where suppliers
and vendors request procurement’s attendance.
 $ Generated: The $ generated from selling staff time to vendors will go to directly off-set the groups cost to
operate, including salary, occupancy, ….
Compliance: Policy and Controls
 Policy: The Company has set the $ acceptance policy guidelines for the BuiiTime tool to be consistent and
compliant with their overall “gifts policy”. Responsibility for the program rests with the CPO, with oversight from
the CFO.
 Time Slot $ Limits: Limits of $200 per hour have been set for the BuiiTime tool, and an overall vendor limit of
$2,500. Exceptions must be approved outside of the procurement group, by a member of the CFO’s office.
 Control: A central admin will oversee the use of BuiiTime, with the CPO responsible overall for administration.
The other members of the procurement team will not be permitted access. BuiiTime is used to populate a central
calendar.

4. Expected Outcomes via BuiiTime
Procurement:
 Procurement Group: Based on past meeting/event volumes with vendors, expected to cover
20% of the Procurement Group’s direct costs. This is viewed as a permanent and on-going
reduction.
 KPIs: Expected to boost the groups ROI to the organization by 10-20%.
 Productivity: Expect a boost to productivity, as less requests for meetings based on marginal
vendors not paying for time. Meetings that do occur, $ protect the downside of non-
productive time spent with a vendor.
 Expansion: Based on successful implementation, extend the reach beyond procurement, first
to capture $ where procurement is not controlling spend, and then into other categories of
expense/vendor management.
 Strategic: Boost the group’s overall strategic importance to the organization, through better
utilization of staff time.

5. SELL YOUR TIME
Generate More Value!
buiitime.com