The document discusses the evolution of procurement from an operational to a strategic function at SAP and the role of procurement shared services. It outlines SAP's procurement organization, including its objectives to achieve standardization, cost efficiency, compliance, and scalability through a global procurement organization. The document also examines the benefits and challenges of implementing procurement shared services, such as increased standardization and efficiency through consolidation, versus difficulties changing cultures and addressing local requirements. Finally, it presents three models for procurement shared services: local, regional, and global.
Innovation Driven Procurement (IDP) enables purchasing organisations to actively contribute to the strength of a company's innovation, an important strategic objective of many companies
This document discusses the benefits of early procurement involvement in innovation projects. It argues that procurement can help reduce life cycle costs the most when involved from the early concept stage, not just later on. An ideal model involves procurement from the start along with supplier involvement throughout the process. However, conflicting goals between procurement and innovation teams can compromise collaboration. The document proposes an optimal collaboration model from strategy down to process to better leverage the competences of both groups for more efficient innovation and fewer issues later on.
Supply Chain Summit on Innovation Driven Procurement Business ModelRobbert den Braber
Presentation given on the Global SC Summit @ October 4 in Venlo, The Netherlands
It shows the change in Procurement business model required to contribute to innovation
This presentation shows the mismatch of Procurement with innovation processes, and how to change the focus of Procurement in order to successfully contribute to innovation
Brief presentation on IDP - taking Procurement to the next level by contributing to innovation. It requires a differentiated approach for the procurement business models
Innovation Driven Procurement (IDP) is a strategy that aligns a company's procurement processes with its corporate focus on innovation. It transforms the procurement function into a true business partner by formalizing mechanisms to connect the company with external parties that can contribute to new product development. IDP provides procurement with a clear focus on supporting the company's innovation initiatives and needs through roles and services beyond traditional sourcing and supplier management. For companies where innovation is a key part of their corporate strategy, IDP is crucial for procurement to add value to the business.
The document discusses innovation driven procurement (IDP) strategies that companies can adopt to better support open innovation and corporate innovation goals. It provides examples of how Procter & Gamble uses open innovation through internal and external networks. It argues that procurement functions are well-positioned to support open innovation due their skills in boundary spanning, technical insights, and relationship management. An IDP strategy formalizes these mechanisms and transforms procurement into a business partner that scouts for new opportunities and helps drive the company's future direction.
So how can companies outsource its R&D (or at last a part of R&D) in order to increase flexibility and effectiveness of R&D, whilst maintaining focus and dedication to the value chain’s needs?
Innovation Driven Procurement (IDP) enables purchasing organisations to actively contribute to the strength of a company's innovation, an important strategic objective of many companies
This document discusses the benefits of early procurement involvement in innovation projects. It argues that procurement can help reduce life cycle costs the most when involved from the early concept stage, not just later on. An ideal model involves procurement from the start along with supplier involvement throughout the process. However, conflicting goals between procurement and innovation teams can compromise collaboration. The document proposes an optimal collaboration model from strategy down to process to better leverage the competences of both groups for more efficient innovation and fewer issues later on.
Supply Chain Summit on Innovation Driven Procurement Business ModelRobbert den Braber
Presentation given on the Global SC Summit @ October 4 in Venlo, The Netherlands
It shows the change in Procurement business model required to contribute to innovation
This presentation shows the mismatch of Procurement with innovation processes, and how to change the focus of Procurement in order to successfully contribute to innovation
Brief presentation on IDP - taking Procurement to the next level by contributing to innovation. It requires a differentiated approach for the procurement business models
Innovation Driven Procurement (IDP) is a strategy that aligns a company's procurement processes with its corporate focus on innovation. It transforms the procurement function into a true business partner by formalizing mechanisms to connect the company with external parties that can contribute to new product development. IDP provides procurement with a clear focus on supporting the company's innovation initiatives and needs through roles and services beyond traditional sourcing and supplier management. For companies where innovation is a key part of their corporate strategy, IDP is crucial for procurement to add value to the business.
The document discusses innovation driven procurement (IDP) strategies that companies can adopt to better support open innovation and corporate innovation goals. It provides examples of how Procter & Gamble uses open innovation through internal and external networks. It argues that procurement functions are well-positioned to support open innovation due their skills in boundary spanning, technical insights, and relationship management. An IDP strategy formalizes these mechanisms and transforms procurement into a business partner that scouts for new opportunities and helps drive the company's future direction.
So how can companies outsource its R&D (or at last a part of R&D) in order to increase flexibility and effectiveness of R&D, whilst maintaining focus and dedication to the value chain’s needs?
This document discusses innovation in multiple industries and contexts. It begins by defining innovation as the exploitation of new ideas and discusses how innovation is essential for jobs, businesses, products/services, and environmental processes. It then provides examples of different types of innovations, frameworks for understanding innovation opportunities, and strategies for collaborative innovation both inside and outside an organization. The document emphasizes that innovation is important for companies, employees, nations, and society by enabling new products/services and economic growth. It also stresses that customers and partners are important sources of innovative ideas.
In context of applying to Startup Life I concluded a portfolio of my projects in business development and sales. I hope the presentation also gives insight on my personality, interests and secret weapons!
The Future of the Channel [Global Channel Partners Summit]interlinkONE
The document discusses the life cycles of manufacturers, distributors/dealers, and markets in the print channel ecosystem and how they are impacted by changes in technology, economics, and customer needs. It presents scenarios showing how each group transitions from conventional legacy models to ones incorporating technological agility, lean manufacturing, and integrated digital solutions. The scenarios illustrate how changes in one group can trigger changes in the others as the entire print channel ecosystem evolves over time.
Channel Success: Is Your Organization Ready? [Global Channel Partners Summit]interlinkONE
The document discusses the challenges facing organizations and channel partners in today's competitive environment. It emphasizes the need to align business strategies, identify new revenue streams, and transition to new technologies. The document defines what a successful partnership entails - including trust, shared innovation, agreed upon goals, and mutual ROI. It outlines Kodak's channel vision to serve customers through strategic relationships and their objectives to maximize satisfaction, drive growth, and ensure simple execution. Finally, it discusses the top 10 "must haves" channel partners need for success, including sales capability, strategic alignment, expertise, ability to invest, and market attractiveness.
Our services can help businesses from around the world establish and expand their operations in India across various sectors such as consumer goods, retail, and industry. We provide strategic support for market entry and expansion through initiatives related to market exploration, business planning, product development, distribution, promotion, and talent acquisition. Our goal is to make brands successful in India through an in-depth understanding of the market and consumers.
Kennametal's innovation journey focused on strategic alignment, disciplined processes, and executive involvement. They created an Innovation Ventures Group to target emerging business opportunities beyond their core offerings. Their approach balances managing the core business while incubating new opportunities earlier in the innovation cycle through a portfolio of projects with varying levels of risk and market adjacency. Executive support was crucial for providing resources and governance over the innovation pipeline and portfolio.
1. The document discusses partner marketing and how to improve relationships with partners to drive conversion. It emphasizes developing progressive partnerships through understanding partners' businesses and adding value.
2. The iris approach involves defining strategic paths and shared growth agendas with partners. It also focuses on field teams, brand effect, consumer behavior and marketing support to optimize partner activities.
3. Dashboards are used to track partner strategies, observations, and opportunities for briefs that accelerate brands and add value through differentiated products and services. The goal is influencing purchase both in and outside of retail through long-term progressive partnerships.
Mp1 1 Innovative Demand Side RelationshipsECR Community
This document discusses the importance of innovation in driving demand and growth, especially in mature markets. It notes that both retailers and suppliers have become risk averse and focused on efficiency rather than innovation. There are several systemic barriers that inhibit innovation, including a lack of long-term alignment and planning between retailers and suppliers, financial constraints, and a lack of data sharing. The document proposes that establishing industry standards and measures around innovation could help unlock growth opportunities estimated at €42 billion by enabling more effective collaboration.
Socially synergistic enterprises 10 june m. baronMarcel Baron
This document discusses balancing internal and external collaboration to improve innovation. It describes IBM's integrated product development process which brings together multiple teams including an integrated portfolio management team, project development team, and investment review board to share market insights, develop strategies, and manage new product development from concept through launch. The process aims to improve innovation through collaboration between functions and continuous feedback from customers and markets.
IBM held a business partner kickoff event in 2013 to discuss strategy. Jan Simonsen from IBM presented on creating IBM's strategy map to visualize goals, strategies, and tactics. Understanding IBM's strategy helps partners explain their value proposition, understand their own goals and role, and build a smarter business. Partners were asked to analyze, understand, and use the strategy map to improve their skills and grow their business. The strategy map is a tool to keep strategies and tactics aligned to achieve goals.
The document discusses iRobot's options for expanding its business, including popularizing robotics, infusing robotic technology into everyday products, and licensing its technology or pursuing strategic alliances. It recommends that iRobot complement its core competencies with informal strategic alliances to promote innovation, mitigate contract risk, and leverage its research and development capabilities.
Koen Klokgieters is a Vice President of Business Innovation at Capgemini consulting with over 20 years of experience in innovation. He provides insights on optimizing innovation portfolios and implementing innovation strategies through analyzing projects' alignment with strategic goals and their impact on business models and technology. His approach involves understanding the company's innovation strategy, optimizing its portfolio, and analyzing projects to boost execution through managing critical success factors like time, coordination, and integration.
Today's most robust innovation assessment instrument validated by academic peer review and years of in-market applications. Already used by thousands of professionals across a wide range of industries. Enables systematic and continuous innovation, resulting in improved business outcomes.
Joeri van Bogaert / Timber Haaker - GIPPa: a joint innovation platform for Ft...imec.archive
Presentation at the Workshop on Municipal Fiber Networks, October 24th 2011 in Ghent, Belgium. The workshop was organised by Ghent University - IBCN / IBBT. More information about this event can be found at http://http://events.ibbt.be/en/workshop-municipal-fiber-networks.
Guiding companies and organisations through the strategic management of technology within tough economic times whilst establishing a sound relationship between the business and IT.
Centralised IT can no longer keep up with the rapid pace of technological change, leaving a gap between the rate of new tech advances and an organization's ability to adopt them. This has led business units to pursue shadow IT initiatives without IT involvement. The role of the CIO must now shift from control to enabling innovation by establishing an innovation platform and frameworks that give the business tools to leverage new technologies in a consistent, integrated manner. As digital transformation increases, more companies are appointing Chief Digital Officers to champion these efforts separately from the CIO, who must now balance multiple roles including managing complexity, responding to emerging needs, and delivering an innovation-ready environment.
The document discusses various stages in the sourcing lifecycle including strategy, sourcing, and governance. It then provides rationale for engaging a sourcing advisor, noting they can accelerate the process by 55-72% and increase direct cost savings by 11-16% compared to going it alone. Finally, it introduces some sourcing benchmarking and assessment offerings from Alsbridge that can help analyze scenarios, expedite decisions, and evaluate current sourcing relationships.
The document discusses the need for transformation of commissioning and procurement processes in English local government. It outlines the current financial challenges and notes that local councils will need to reduce costs significantly while relying more on external organizations to deliver services. The transformation process should focus on five key themes: new service models, managing risk versus risk aversion, shaping markets, looking ahead not back, and improved contract management. Savings could be achieved through leveraging collective purchasing power across local councils and improving management of contracts once awarded.
Albéa Group's Procurement Transformation - An Ariba Customer StorySAP Ariba
Procurement executives, though continually challenged to maintain sustainable savings, also face numerous challenges integrating supply risk management with spend management. This is especially true for organisations that focus on reducing costs and limiting working capital levels as a response to difficult market conditions.
In this session, Albea Group share show they achieved smarter supplier management and embarked on a journey from being company-centric to customer-centric, and demand-driven, using business networks.
Albea Group, Aurelie Goubin, Purchasing Best Practices Manager
Ariba Commerce Summit 2014, Paris
This document discusses innovation in multiple industries and contexts. It begins by defining innovation as the exploitation of new ideas and discusses how innovation is essential for jobs, businesses, products/services, and environmental processes. It then provides examples of different types of innovations, frameworks for understanding innovation opportunities, and strategies for collaborative innovation both inside and outside an organization. The document emphasizes that innovation is important for companies, employees, nations, and society by enabling new products/services and economic growth. It also stresses that customers and partners are important sources of innovative ideas.
In context of applying to Startup Life I concluded a portfolio of my projects in business development and sales. I hope the presentation also gives insight on my personality, interests and secret weapons!
The Future of the Channel [Global Channel Partners Summit]interlinkONE
The document discusses the life cycles of manufacturers, distributors/dealers, and markets in the print channel ecosystem and how they are impacted by changes in technology, economics, and customer needs. It presents scenarios showing how each group transitions from conventional legacy models to ones incorporating technological agility, lean manufacturing, and integrated digital solutions. The scenarios illustrate how changes in one group can trigger changes in the others as the entire print channel ecosystem evolves over time.
Channel Success: Is Your Organization Ready? [Global Channel Partners Summit]interlinkONE
The document discusses the challenges facing organizations and channel partners in today's competitive environment. It emphasizes the need to align business strategies, identify new revenue streams, and transition to new technologies. The document defines what a successful partnership entails - including trust, shared innovation, agreed upon goals, and mutual ROI. It outlines Kodak's channel vision to serve customers through strategic relationships and their objectives to maximize satisfaction, drive growth, and ensure simple execution. Finally, it discusses the top 10 "must haves" channel partners need for success, including sales capability, strategic alignment, expertise, ability to invest, and market attractiveness.
Our services can help businesses from around the world establish and expand their operations in India across various sectors such as consumer goods, retail, and industry. We provide strategic support for market entry and expansion through initiatives related to market exploration, business planning, product development, distribution, promotion, and talent acquisition. Our goal is to make brands successful in India through an in-depth understanding of the market and consumers.
Kennametal's innovation journey focused on strategic alignment, disciplined processes, and executive involvement. They created an Innovation Ventures Group to target emerging business opportunities beyond their core offerings. Their approach balances managing the core business while incubating new opportunities earlier in the innovation cycle through a portfolio of projects with varying levels of risk and market adjacency. Executive support was crucial for providing resources and governance over the innovation pipeline and portfolio.
1. The document discusses partner marketing and how to improve relationships with partners to drive conversion. It emphasizes developing progressive partnerships through understanding partners' businesses and adding value.
2. The iris approach involves defining strategic paths and shared growth agendas with partners. It also focuses on field teams, brand effect, consumer behavior and marketing support to optimize partner activities.
3. Dashboards are used to track partner strategies, observations, and opportunities for briefs that accelerate brands and add value through differentiated products and services. The goal is influencing purchase both in and outside of retail through long-term progressive partnerships.
Mp1 1 Innovative Demand Side RelationshipsECR Community
This document discusses the importance of innovation in driving demand and growth, especially in mature markets. It notes that both retailers and suppliers have become risk averse and focused on efficiency rather than innovation. There are several systemic barriers that inhibit innovation, including a lack of long-term alignment and planning between retailers and suppliers, financial constraints, and a lack of data sharing. The document proposes that establishing industry standards and measures around innovation could help unlock growth opportunities estimated at €42 billion by enabling more effective collaboration.
Socially synergistic enterprises 10 june m. baronMarcel Baron
This document discusses balancing internal and external collaboration to improve innovation. It describes IBM's integrated product development process which brings together multiple teams including an integrated portfolio management team, project development team, and investment review board to share market insights, develop strategies, and manage new product development from concept through launch. The process aims to improve innovation through collaboration between functions and continuous feedback from customers and markets.
IBM held a business partner kickoff event in 2013 to discuss strategy. Jan Simonsen from IBM presented on creating IBM's strategy map to visualize goals, strategies, and tactics. Understanding IBM's strategy helps partners explain their value proposition, understand their own goals and role, and build a smarter business. Partners were asked to analyze, understand, and use the strategy map to improve their skills and grow their business. The strategy map is a tool to keep strategies and tactics aligned to achieve goals.
The document discusses iRobot's options for expanding its business, including popularizing robotics, infusing robotic technology into everyday products, and licensing its technology or pursuing strategic alliances. It recommends that iRobot complement its core competencies with informal strategic alliances to promote innovation, mitigate contract risk, and leverage its research and development capabilities.
Koen Klokgieters is a Vice President of Business Innovation at Capgemini consulting with over 20 years of experience in innovation. He provides insights on optimizing innovation portfolios and implementing innovation strategies through analyzing projects' alignment with strategic goals and their impact on business models and technology. His approach involves understanding the company's innovation strategy, optimizing its portfolio, and analyzing projects to boost execution through managing critical success factors like time, coordination, and integration.
Today's most robust innovation assessment instrument validated by academic peer review and years of in-market applications. Already used by thousands of professionals across a wide range of industries. Enables systematic and continuous innovation, resulting in improved business outcomes.
Joeri van Bogaert / Timber Haaker - GIPPa: a joint innovation platform for Ft...imec.archive
Presentation at the Workshop on Municipal Fiber Networks, October 24th 2011 in Ghent, Belgium. The workshop was organised by Ghent University - IBCN / IBBT. More information about this event can be found at http://http://events.ibbt.be/en/workshop-municipal-fiber-networks.
Guiding companies and organisations through the strategic management of technology within tough economic times whilst establishing a sound relationship between the business and IT.
Centralised IT can no longer keep up with the rapid pace of technological change, leaving a gap between the rate of new tech advances and an organization's ability to adopt them. This has led business units to pursue shadow IT initiatives without IT involvement. The role of the CIO must now shift from control to enabling innovation by establishing an innovation platform and frameworks that give the business tools to leverage new technologies in a consistent, integrated manner. As digital transformation increases, more companies are appointing Chief Digital Officers to champion these efforts separately from the CIO, who must now balance multiple roles including managing complexity, responding to emerging needs, and delivering an innovation-ready environment.
The document discusses various stages in the sourcing lifecycle including strategy, sourcing, and governance. It then provides rationale for engaging a sourcing advisor, noting they can accelerate the process by 55-72% and increase direct cost savings by 11-16% compared to going it alone. Finally, it introduces some sourcing benchmarking and assessment offerings from Alsbridge that can help analyze scenarios, expedite decisions, and evaluate current sourcing relationships.
The document discusses the need for transformation of commissioning and procurement processes in English local government. It outlines the current financial challenges and notes that local councils will need to reduce costs significantly while relying more on external organizations to deliver services. The transformation process should focus on five key themes: new service models, managing risk versus risk aversion, shaping markets, looking ahead not back, and improved contract management. Savings could be achieved through leveraging collective purchasing power across local councils and improving management of contracts once awarded.
Albéa Group's Procurement Transformation - An Ariba Customer StorySAP Ariba
Procurement executives, though continually challenged to maintain sustainable savings, also face numerous challenges integrating supply risk management with spend management. This is especially true for organisations that focus on reducing costs and limiting working capital levels as a response to difficult market conditions.
In this session, Albea Group share show they achieved smarter supplier management and embarked on a journey from being company-centric to customer-centric, and demand-driven, using business networks.
Albea Group, Aurelie Goubin, Purchasing Best Practices Manager
Ariba Commerce Summit 2014, Paris
Procurement 2020, Milepost 2015: Oxford Economics on Ongoing and Emerging Tre...SAP Ariba
Find out what happened when a small group of CPOs got together to share their bold 10-year vision for the future of procurement—and then five years later had that vision checked against what 1,000 executives and practitioners are actually experiencing. In this session, you’ll hear why Ariba and Oxford Economics embarked on “another future of procurement” study, and see what makes this survey so different from all the others. You’ll get an insider’s peak at the preliminary findings, and leave inspired to talk more with colleagues about what you think the future—and present day—looks like for procurement.
The Journey to the Cloud: Preparing for Success in the Digital EconomySAP Ariba
The document discusses tips for a successful transition to the cloud based on lessons learned from analyzing over 15,000 benchmarking participants and $350 billion in spending across various industries. It provides five tips: embrace configuration over customization, prepare for process and people changes, take an end-to-end approach, look broadly across your existing systems, and plan ahead to avoid potential pitfalls. The document encourages contacting an SAP Ariba representative to learn more about a successful cloud journey.
This document discusses key concepts for building a business case to evaluate the feasibility of implementing shared services. It provides an overview of how to calculate costs and benefits, collect current state metrics, and consider sensitivities. Calculating benefits focuses on headcount reductions through process efficiencies and benchmarks. Costs include labor, technology, consulting, and site-related expenses. Non-quantifiable benefits like improved customer service and controls are also noted. Current state metrics involve analyzing headcounts, volumes, and costs by activity. Interviews provide context.
VISION 2020
WELCOME TO THE FUTURE OF PROCUREMENT
Imagine it's the year 2020. Procurement has evolved so much that you barely recognize it. Its functions have been decentralized – or outsourced! – leaving leadership to focus on very different things. Job descriptions have changed dramatically. What's more, suppliers seem to have infiltrated the organization!
In this provocative report, visionary procurement leaders predict the future of procurement. They also advise how to prepare for it.
They agree about many things, but does that make them right?
Align Finance and Procurement to Achieve Shared Services Excellence - NHS SBSsharedserviceslink.com
NHS Shared Business Services provides finance and procurement services to over 100 customer organizations across the NHS. It processes over $28 billion in annual payments and $6 billion in annual procurement spend. The document discusses the benefits of integrating NHS finance and procurement systems, including improved spend analysis, reduction in non-purchase order spend, and increased payment discounts. It also outlines challenges, lessons learned, and examples of management reports that could be generated from an integrated system.
Trends and Best Practices in Global Shared ServicesChazey Partners
The deck shows you the latest trends in Global Shared Services and Outsourcing industry and the best practices on optimizing your Shared Services performance
The document outlines 10 keys to effectively implementing a shared service center. It recommends establishing clear objectives and criteria for what processes to include. A phased implementation plan and simplifying complex processes upfront are also advised. Strong governance is needed to prevent unnecessary complexity over time. Performance should be regularly benchmarked and technology platforms chosen that can support the shared services long-term.
The document discusses purchase-to-pay (P2P) processes and how they fit within enterprise supply chain management. It describes key components of P2P including invoice processing and accounts payable. It also discusses benefits of implementing a P2P shared services delivery model and how P2P technology and selective outsourcing of P2P functions can help reduce costs and improve processes.
The 7 step strategic sourcing framework is a popular model developed by ATKearney consulting to help companies lower costs through strategic procurement. The 7 steps include: 1) developing a category profile through spending and supply market analysis, 2) creating a sourcing strategy, 3) generating a supplier portfolio, 4) selecting an implementation plan such as negotiations or auctions, 5) negotiating and selecting suppliers, 6) implementing agreements, and 7) continuous improvement of the sourcing process. Major companies like P&G, HUL, IBM and Dell have used this framework to achieve cost savings of 10-20%.
Innovative Outsourcing Deal Structures by Trowbridge Group Innovative Outsourcing Deal Structures by Trowbridge Group Innovative Outsourcing Deal Structures by Trowbridge Group, Ben Trowbridge, CEO & Managing Partner, Trowbridge Group, outsourcing, innovative, January 25, 2005
This document discusses procurement transformation and achieving world-class procurement. It shows that while procurement organizations have made efforts and investments, compliance, spend visibility, savings, sustainability, and risk management remain challenges. The document outlines maturity levels for procurement from recognizing price to leading and integrating the entire value chain. It describes Capgemini's services in helping procurement organizations develop their strategy and transform to the desired maturity level aligned with corporate strategy.
The document discusses creating an intelligent and cost-conscious shared services model. It outlines an approach to assess opportunities, formulate options, conduct feasibility analysis, and develop a low-cost model. Key aspects of the shared services vision discussed include centralized functional placement, process design, risk assessment, and organizational design/governance. Alternative shared services models like centralized, hybrid, and distributed are examined. Guiding principles for the shared services deployment include a balanced approach, strong business relationships, fact-driven decisions, and a staged implementation plan.
The document discusses creating intelligent and cost-conscious shared services processes. It outlines an approach to shared services that involves assessing the current state, formulating options, conducting feasibility analyses, and developing a low-cost model. Key objectives are discussed such as strategic alignment. A shared services vision and structure is presented using accounts payable as a pilot function. The rationale for a shared services center is described as providing a service-oriented and scalable infrastructure with appropriate accountability.
Improving business performance through the recession: Are your HR systems fit...Softworld
Chris Murray and Andrew Knight, HR Technology Consulting, PricewaterhouseCoopers
Practical advice on using HR technology to deliver business strategy, maximise return on investment and gain competitive advantage as you exit the recession.
Richard J. Sherman from Emeritus Supply Chain Council; Chairman’s Day Two Kic...eyefortransport
This document summarizes a presentation on building supply chains to compete amid uncertainty. It discusses how the economic downturn of 2009 increased challenges for companies and the need to transform operations through supply chain management initiatives. It outlines how focused SCM initiatives can reduce costs by 30-35% and increase revenues and shareholder value. Finally, it discusses how companies must evolve their supply chains to collaborative, demand-responsive networks to meet growing business challenges.
Resources Global Professionals is a publicly-traded global professional services firm that was founded in 1996 and provides project consulting, project support, and operational support services to large multinational companies. They partner with clients to plan and execute initiatives and support day-to-day operations using dedicated teams of experienced professionals across various functions and industries. The firm has over 3,000 professionals serving clients in 66 countries with an emphasis on customized solutions, knowledge transfer, and cost-effective consulting services.
Instigate provides services to insurance and financial services clients, including strategy and organizational change, application strategy, system selection and implementation, program/project management, mergers and acquisitions, regulatory compliance, and data migration. They take a pragmatic approach using experienced resources and established methodologies and tools to deliver benefits for clients.
In this thought provoking paper we talk about how in the last few years since the Great Recession, organizations have attempted to
Optimize supply chain operations and position themselves for growth over the next 3-5 years. This includes tapping “low-hanging fruit”
in the optimization journey, largely in the indirect sourcing transactional services such as logistics.
Procuring “direct” material, however, seems to be a relatively untapped opportunity for organizations to continue optimizing
their supply chains. Inevitably, companies can benefit significantly more by opting for an end-to-end framework
rather than through incremental improvements to direct spend management processes.
White Paper: Change management in procurement outsourcingGEP
Procurement outsourcing has helped in the metamorphosis of the procurement function by creating greater value compared to the traditional practice. However, the process of outsourcing is associated with several changes to the existing procurement practice and a clear understanding of key value levers is essential to fully appreciate the need for change management process. GEP's unique Six-Step Change Management Model provides a holistic solution to manage change. Download this white paper to know more about it and its benefits.
Professional Business Results & Selected Accomplishmentsmjleib
This slide show summarizes the professional results and accomplishments of Michael Jay Leib across management accountability, marketing leadership, and technology leadership. Some of the key accomplishments highlighted include redesigning and automating customer fulfillment processes, product turnarounds and restructurings, expanding business into new markets, special end-of-life product sales, acquisitions and integrations, increasing revenue and margins, and building out channel sales programs.
ERP Logic is an ERP implementation, consulting, and technology services company. They offer a range of services including assessment and re-engineering, implementation and upgrades, application management, on-demand consulting, and custom development to help clients navigate their ERP lifecycle. Their goal is to help clients maximize ROI, minimize total cost of ownership, and ensure seamless integration of IT and business strategies.
This document is a presentation from Executive Business Intelligence (EBI) that summarizes their services and expertise in strategy, supply chain, and change solutions. EBI aims to advise clients and develop partnerships through quality services. Their five key service areas include business strategy, operations strategy, change management, technology, and interim resources. EBI uses a six sigma DMAIC process for their projects and has offices across Europe, Asia, and the Middle East. The presentation discusses the increasing importance and complexity of supply chain management for businesses.
The document discusses establishing an Enterprise Performance Management (EPM) competency center. It outlines that such a center is needed to continuously improve business processes, drive fact-based decisions, and align execution to strategy after ERP/EPM projects. The competency center would oversee areas like business process optimization, data maintenance, management reporting, and continuous user training. It proposes that the center have roles across enabling people, managing processes, and supporting technology to fulfill its goals.
This document discusses business process co-sourcing solutions provided by AES International for international professional services firms. AES offers comprehensive solutions spanning administration and technology, practice management, and wealth management. Their services are designed to help firms reduce operational costs, manage regulatory requirements, and focus on core activities and client relationships to increase short-term profits and long-term business value. AES establishes unique networks and leverages expertise, resources, and economies of scale to differentiate partner firms in competitive markets.
ERP Logic is an ERP consulting firm that provides implementation, consulting, and technology services for enterprise systems like SAP. They help clients navigate their entire ERP lifecycle from assessment and implementation to upgrades and ongoing application management. ERP Logic aims to maximize ROI, minimize costs, and ensure seamless alignment between business and IT strategies for its clients. It has experience across several industries and uses proven methodologies and tools to deliver high-quality solutions on time and on budget.
This document provides a case study of a large scale business transformation program undertaken by a top 10 global business organization to standardize processes, implement a single ERP system, and integrate operations across various business units. The program involved transforming business processes, implementing SAP, integrating operations, and deploying shared services. Project management methodology was effectively applied to execute the program through establishing governance, planning deployment, developing solutions using IBM Ascendant methodology, managing stakeholders, and realizing business benefits. While costs exceeded projections, the program achieved its goals and business benefits through effective program management.
This document discusses how Jijesoft can help enterprises facing challenges from changing customer demands and disruptive technologies. Jijesoft provides strategic technology partnerships to help enterprises (I) leverage new technologies to create value, (II) integrate technology into products and services, and (III) manage IT-enabled change initiatives. Jijesoft can help reduce costs through efficiency gains and help enterprises adapt to market transitions through innovation and timely responses.
The governance maturity assessment identified an overall maturity level of 2, indicating some repeatable governance processes. Recommendations include chartering cross-enterprise governance committees, developing architectures to guide improvements, and requiring compliance with architectures and policies. Managing core capabilities, empowering technical providers, and defining issue escalation are also recommended to improve governance maturity. The assessment highlights the need for collaboration between business and IT leaders at strategic, tactical, and operational levels of governance.
The document discusses different approaches to outsourcing deals, including traditional outsourcing contracts and joint ventures. It provides an example of a joint venture sourcing structure where responsibilities and contributions are shared 50/50 between the client and vendor. The client typically provides people, assets, commitment as a customer, capital and subject matter experts. The vendor typically provides capital to fund start-up, tools and methods to manage change, experience leading change, transferring resources to the joint venture, and commitment to success.
Similar to Dr, Marcell Vollmer, CPO at SAP - Future trends in procurement: Procurement shared services (20)
Lars Kuch Pedersen, Founding CEO and co-owner at LeanLinking - A fundamental ...Global Business Events
This document outlines a new approach to supplier collaboration and management using a cloud-based platform called LeanLinking. It discusses common procurement challenges around lack of visibility, coordination and leverage. The new approach integrates key stakeholders and uses LeanLinking to share performance data, file documents, and provide reviews and claims to improve supplier relationships and outcomes. The document describes seven ways LeanLinking creates value and provides customer stories demonstrating success in increasing focus, transparency and supplier performance. It outlines LeanLinking's implementation roadmap and invites contact to help procurement create more value.
Reza Hagel, CPO, Advisory and author at Cisco Systems - Value Creation & Ven...Global Business Events
The document discusses vendor innovation in supply relationship management and procurement value creation through innovation. It outlines AT&T's plans to launch a vendor innovation initiative starting in 2012. It also discusses a supplier management platform from State of Flux Technologies and the macro shift from being a buyer of products and services to focusing on supply chain value and process engineering. Finally, it provides an overview of building innovation capability within an organization by aligning leadership and culture around innovation and implementing supporting processes and tools.
Richard Beaumont, VP Central Purchasing at Rolls Royce - Driving Supplier Col...Global Business Events
This document discusses using social media for supplier collaboration in procurement. It notes that social media is now a daily part of life for many professionals. The author proposes using social networking tools as part of the procurement role to better communicate and collaborate with suppliers. The document describes a pilot program using LeanLinking for a qualitative supplier scorecard that aims to pull quantitative metrics directly from systems and use social networking for qualitative commentary, with the goal of creating the scorecard more quickly and cheaply than the previous 12.5 week process. The pilot will evaluate in two months if social media can successfully be used to drive supplier performance feedback and discussion.
Lee Glendon & Nick Wildgoose - Seeing the wood from the trees: New approaches...Global Business Events
Lee Glendon, Supply Chain Risk Specialist at Dun & Bradstreet and Nick Wildgoose, Global Supply Chain Product Leader at Zurich Insurance spoke at the CPO Event March 2014
The document discusses the partnership between the Chief Purchasing Officer (CPO) and Chief Financial Officer (CFO) at Agfa, a technology company. It notes that the CPO-CFO partnership encompasses strategic and tactical areas like financial planning, profitability, risk management, and long-term business sustainability. It then provides details on how the CPO and CFO work together on financial management, including planning and budgeting, costs, cash management, and risk management for materials and suppliers in the short, mid, and long term. The document emphasizes that commonly defined objectives, necessary governance structures, and teamwork are needed to ensure the CPO-CFO partnership is successful.
Jim Hemmington, Head of Procurement at BBC - Developing and Implementing a St...Global Business Events
The document outlines the BBC's journey to developing and implementing a strategic sourcing strategy. It discusses how the BBC initially outsourced services to reduce costs without a clear strategy, leading to inflexible long-term contracts. In 2010, the BBC undertook a review to establish a sourcing strategy focused on value over just cost reduction. This involved establishing category management, analyzing spend, and developing more collaborative supplier relationships through agile contracts and cost transparency. The strategic review helped tailor the BBC's approach across categories and prioritize strategic interventions.
Jim Reed, Director of Procurement at University of Nottingham - Talent transf...Global Business Events
Moving from the private to the public sector procurement takes adjustment. Initially, public sector procurement feels slower and less flexible without negotiation. However, the public sector offers benefits like consortia frameworks and no competition law issues. While there is less freedom, proper preparation including strong requirements, market intelligence, and stakeholder management can blend the best of both worlds. Public sector experience values disciplined, structured processes while private sector skills provide commercial knowledge and an ability to challenge limitations productively. The ideal is bringing the confidence and control of private sector experience together with the strengths of public sector collaboration and evaluation techniques.
Denis Ford, International Leader EMEA at Cummins - Supplier Evaluation & Incl...Global Business Events
This document provides an overview of Cummins Inc.'s supplier evaluation and inclusion processes. It begins with an introduction to Cummins, describing its business segments and global presence. It then discusses Cummins' use of e-sourcing tools like Ariba to conduct competitive bidding processes called Rapid Source and Mega Source. Evaluation criteria and questions are used to score supplier responses. Diversity and inclusion are also considered in evaluations. The Minority Supplier Development UK (MSDUK) and WEConnect International organizations help Cummins identify and engage certified diverse suppliers.
Paula Gildert, VP Development Strategic Sourcing at Novartis - Strategic valu...Global Business Events
This document discusses strategic sourcing and procurement at Novartis. It emphasizes delivering value beyond just cost savings through innovation and collaboration. The document outlines Novartis' focus on patients and purpose to care for and cure diseases. It presents a new strategy for procurement that aims to drive innovation, growth, and business excellence while ensuring quality and integrity. The strategy involves becoming trusted business partners who understand customer needs and bring insights to develop joint goals. It advocates transforming how Novartis works through a more intensive approach involving suppliers to deliver breakthroughs. The goal is to develop skills in business expertise, change management, facilitation, coaching and consulting to create trusted advisor presences.
Paul Joesbury, CPO at Chesapeake - Transforming procurement for improved effe...Global Business Events
The document summarizes a research project called PEPPS that aims to determine the key factors for successful procurement transformations. It discusses the importance of procurement effectiveness and outlines a model developed from previous research. The model includes factors like having a compelling need for change, competent staff, an effective strategy, strong communications, and robust governance. An example transformation at Chesapeake Packaging is described that aligns with the model and improved savings, buy-in, and supply chain capabilities. The next phase aims to further integrate procurement through additional value-added services.
Martin Kunz, VP Global Sourcing & CPO at Ahlstrom Corporation - Supplier rela...Global Business Events
The document outlines Martin Kunz's SRM model for identifying strategic suppliers. It discusses scoping the model, defining terms, establishing a cross-functional team, determining criteria and weightings, and the stratification process. The results section shows how suppliers can be analyzed by group, business area, and category. It recommends that sourcing drive the process, ensuring it is cross-functional and that criteria and weightings are thoroughly determined before execution, which requires a long-term roadmap and detailed implementation plan.
Jonas Olsson, VP Group Purchasing at Trelleborg AB - Internal branding of pur...Global Business Events
This document discusses the purchasing function at Trelleborg Group, a global manufacturer of engineered polymer solutions. It provides an overview of Trelleborg's finances, operations, and purchasing spend. Trelleborg has implemented a purchasing excellence program to train non-buyer employees and professional buyers. The program includes e-learning modules, classroom training, and coaching. As of 2012, over 1,500 employees had completed e-learning training. The goal is to standardize purchasing practices and increase savings. By 2012, the purchasing excellence program had achieved over 3 million Euros in cumulative savings. Plans for 2013 include further implementing purchasing KPI reporting, strategies, and training across Trelleborg sites.
Detlef Schultz, Group Supply Chain Management Director at Vodafone Procuremen...Global Business Events
The document discusses the transformation of Vodafone's supply chain management. It outlines Vodafone's global scale and the creation of the Vodafone Procurement Company (VPC) to centralize strategic sourcing. The VPC now manages over $44 billion in annual procurement and acts as the strategic sourcing center for Vodafone, standardizing contracts and processes. Going forward, the vision is for the VPC to further expand its role by generating revenue through new business lines like partner markets, third-party sales, and supply chain financing.
Carlos Cordon, Professor Supply Chain Management at IMD - How to develop and ...Global Business Events
This document discusses how to develop strategic relations with suppliers. It provides tips on defining superior supplier relations, the benefits these relations can provide, and how to make them work. It also discusses tools for measuring supplier relationships and understanding different leadership levels within relationships. The overall aim is to help organizations proactively build strong supplier relationships to achieve superior performance.
Roger Davies, Group Head of Procurement at Marks & Spencer - Our capability d...Global Business Events
This document outlines the transformation of the procurement team at an international retailer over a 4-year period from 2009 to 2012. It describes how the team developed their capabilities, improved stakeholder management and relationships, and became a more strategic partner within the business. The procurement team grew to deliver higher value through strategic sourcing, achieving £60 million in annual benefits with a 45:1 return on investment. They established themselves as an essential commercial function through their involvement in all strategic decisions across the company.
Silvester De Keijzer Sr. VP Business Development at Beeline - Flexible labour...Global Business Events
This presentation provides information about Beeline VMS, a flexible labor spend management company. In 3 sentences:
Beeline VMS was founded in 2000 and manages temporary staffing, statements of work, and other non-full time employees for over 250,000 unique users through their global network of 8,200 suppliers. The presentation outlines Beeline's key statistics, international presence, services procurement process, benefits for controlling flexible labor spend, and stakeholder engagement tools. A demo of their services procurement platform is also available to watch.
Silvester De Keijzer Sr. VP Business Development at Beeline - Flexible labour...
Dr, Marcell Vollmer, CPO at SAP - Future trends in procurement: Procurement shared services
1. The Procurement Organization of the
future between shared services and
strategic procurement
Global Procurement Excellence
Dr. Marcell Vollmer, Chief Procurement Officer at SAP AG
February 8, 2013
2. Agenda
1 SAP's Procurement Organization
2 Evolution Procurement Function
3 Procurement Shared Services @ SAP
3. SAP Today
65,000+
SAP employees worldwide
16.3bn
revenue (2012)
3.6bn
spend (2012)
> 446,000
received invoices (2012)
120 / 350
countries / buildings
14,000+
active suppliers worldwide
4. What keeps me as CPO awake at night?
The business world has witnessed unprecedented challenges in the last years
…global …scarcity of
…unforeseeable climate catastrophes
economic meltdown raw materials
Global Procurement has to be prepared to cope with these challenges, being flexible and deliver high class services within rapid
changing frameworks
5. Vision and Mission and Structural Set-up of Global Procurement
Global Procurement Organization (GPO) @ SAP
Global Procurement Organization (GPO) combines all SAP procurement units. We significantly improve SAP's performance
by leveraging our overall purchasing power and realizing sustainable savings by executing globally streamlined commodity
strategies.
Within the GPO, we strive to implement best-in-class procurement processes, deliver first-class services to our internal
customers, mitigate risk for SAP, and be a fair partner to our vendors.
CPO
Procure-to-Pay
Strategy Group
Concentration of all procurement-related
activities within GPO and support all countries on
purchasing volume in a tiered logic
Commodity Procurement
Procurement Shared Services
(strategic and tactical sourcing) (operational procurement) 44 Locations Worldwide with approx. 200 People
6. Objectives of SAP’s Global Procurement Organization
Our guiding principles to achieve Global Procurement Excellence
Standardization
and Automation
Scalability Cost Efficiency
ONE GPO
Compliance
7. Agenda
1 SAP's Procurement Organization
2 Evolution Procurement Function
3 Procurement Shared Services @ SAP
8. Evolution of Procurement towards Strategic Function
Shared Services as Enabler
Strategic relevance of procurement within a
company
Strategic Partner
Tactical Partner
Operational Partner
Time spend on Time spend on Time spend on
operational tactical strategic
procurement procurement procurement
tasks tasks tasks
Time spend on Time spend on Time spend on
operational tactical strategic
procurement procurement procurement
tasks tasks tasks
In order to enable procurement staff to
focus on value adding strategic tasks,
procurement shared services strives to
Time spend on Time spend on Time spend on
operational tactical strategic
leverage existing resources to the best
procurement procurement procurement extend in order to efficiently handle
tasks tasks tasks
operational procurement processes
until 1950 1950 - today Today 2015 + time
9. Procurement Shared Services
Benefits and Challenges of Procurement Shared Services
Shared Services definition: Concentration of company resources performing activities, typically spread across the organization, in
order to service multiple internal partners at lower cost and with higher service levels, with the common goal of delighting external
customers and enhancing corporate value
Benefits Challenges
• Increased standardization • Change Management and top management buy-in to
implement Shared Services
• Higher degree of automation due to consolidation
• Different local cultures, business practices, and legal
• Economies of scope and scale (improved efficiency and
requirements
effectiveness)
• Eliminate “Shadow” processes and process inefficiencies
• Easier Process Performance Measurement and Analytics
(Business process reengineering)
• Workload balancing around the globe possible
• Difficult to get skilled and experienced project resources
• Full transparency on spend, master data and compliance
• Service level and charging model
10. Procurement Shared Service Center (SSC) Models
Three models can be differentiated: local, regional and global
Geographic scope
Local Set-Up (Centers) Regional Centers Global Center
Separate SSC per location providing individual services to local Regional SSC providing services to all subsidiaries within a One Global SSC providing services to all subsidiaries globally
subsidiaries specific region
• Easy implementation of global standards
Benefits
• Good balance between customer proximity
• Customer proximity
and standard setting • High degree of automation due to high
• Easy adoption to local culture transactional volume (lights out shared
• 24x5 service
services)
• Time zone coverage (deliver 24x5 service)
• Difficult to set-up global standards • Regional standards instead of global
Risks
standards • Business continuity
• Low degree of automation due to limited
transactional volume • Collaboration between regional centers • Competition for skilled people in one
location
11. Agenda
1 SAP's Procurement Organization
2 Evolution Procurement Function
3 Procurement Shared Services @ SAP
12. Procure to Pay @ SAP
Overview of Key KPIs
Procurement Volume @ SAP in 2012
incl. Sybase FTE are working for P2P @ FTE still working for P2P
SAP outside GPO & GFSSO for a non automated P2P process cycle
Active Suppliers in 2012
Clicks, <1 min. to create a shopping cart – but
Purchase Order Line items in 2012 TRAINING REQUIRED
Invoices in 2012
Trip Entries in 2012
Run P2P … ... Procurement Savings
... Show Case Run P2P… ... cheaper ® (FRBT) ... cleaner ®
(Data) ... smoothier ®
... Efficiency & Effectivness ... saver ® (BRBF)
... High Quality (SOX)
... friendlier ® (Usability)
... User friendly ... SAP Runs SAP ... standardizier ® (Self ... stronger ® ... controllier ®
(Governance)
... Compliance Assessment) (KPI)
13. House of Procurement 2015 - Focus, Align and Engage
Best in class procurement organization to be established
2015
GPO Strategy
Best-in-Class Procurement
Strategic Excellence Margin Operative Excellence
Generation of sustainable savings using global procurement SSC
with lean and standardized processes
Commodity Strategy Customer Success Organization
Best in class procurement services for our customers as innovative
frontrunner and example
Sourcing Strategy Customer Centricity
Growth
Be volume ready for 2015 with customer centric operations and
Supplier Management PMI support Processes
People
Frontrunner & Innovation High GPO workforce engagement through leadership, empowerment, Standardization & Automation
trainings and promotion of diversity
People Excellence
Leadership Development Diversity Experts
Governance & Compliance
14. Procurement Shared Services @ SAP
From As-Is (regional) to To-Be (global)
until end of 2012 as of 2013
Regional Centers Global Organization with Regional Centers
EMEA/DACH Procurement Operations
Americas EMEA Americas APJ
APJ
• Procurement Operations organizational units How do we get there: • One globally operating Procurement
handled in a Shared Services Model • Centralization of procurement Operations organization with three regional
• Separate regional organizations for EMEA, operations for EMEA region in Prague centers for EMEA, APJ and Americas
Americas and APJ (Q1 2012), using existing SAP SSC • Globally aligned standards and working
• Centralized centers in Americas and APJ, co- infrastructure in Prague principles
located to existing finance Shared Services • Bringing all three Procurement • In very few exceptional cases operations
Centers Operations organizational units under employees can still be located outside a
• No globally standardized working principles one global umbrella (Q1 2012) in order Shared Services Center
to ensure globally standards
15. Procurement Operations today and in future
From 12 to 3 Locations Worldwide
Stockholm
until 2012: Dublin Berlin Warsaw
St. Ingbert Prague
Dresden
Regional Walldorf
Denver Newtown Square
Centers for
Procurement
Operations Singapore
without global
coordination
Buenos Aires
in 2013:
One
Prague
standardized
global
Procurement
Operations Singapore
Organization
operating within
three regional Buenos Aires
centers
Location with more than 10 employees Location with less than 10 employees Location with less than 3 employees
16. Current Scope of Procurement Shared Services @ SAP
Request handling, Master data and Operational support
• Check quality of Shopping carts
Order & • Perform PO management & processing
1 request
• Manage Procurement Cards (P-Card)
handling
• Support RfX processes/e-sourcing (tactical support) for Commodity and Country Procurement
Master • Execute vendor master management
2 data • Execute material master data and catalogue management
management • Execute Contract management
• Provide
• end-user support
• helpdesk functionality
Operational • system support (power user)
3 • Support/manage M&A activities
Support
• Provide quality management functionality
• Provide analytics (for Commodity/Country Procurement) on request
• Provide operational management for car fleet
17. Take Away’s and Lessons Learned
• The Procurement Function developed from a purely operational function
towards a more strategic Business Partner Function within a company
• Procurement Shared Services is an enabler for the Procurement Function to
focus on strategic tasks
• Different Procurement Shared Services Models exist and each company has to
decide on the best model, according to it‘s geographic scope and
organizational set-up
• Each Procurement Shared Services Organization has to define their service
portfolio according to the maturity and desire for an organization