SlideShare a Scribd company logo
1 of 23
Download to read offline
Sales Institute

 David Coffey  The Clearview Group
 David Coffey – The Clearview Group
Stephen Pitcher – Provide Consultants
         19TH January 2011
                       2011
Agenda 
                                      Agenda
       Introduction – Who we are
1.     What is Purchasing /Procurement
       What is Purchasing /Procurement
      1.     When does it start?
      2.     What are the different levels of procurement maturity within clients organisations
      3.
      3      What challenges does procurement face
             What challenges does procurement face
      4.     Outline ways to identify the procurement behaviours of clients
2.     Procurement Practices
     1.
     1      What do they do 
            What do they do
     2.     How do they plan, identify strategies
     3.     What tools do procurement use
     4.
     4      What does this mean for you
            What does this mean for you
     5.     Identify ways to engage with different levels of procurement
3.     How do suppliers respond
     1.
     1      How to categorise procurement functions
            How to categorise procurement functions
     2.     Category and Supplier Management
     3.     Tools for suppliers
     4.
     4      Top Tips 
            T Ti
Introduction



 David Coffey – The Clearview Group – david.coffey@clearviewgroup.ie / 087.137.0798
 David has extensive experience building, managing, and transforming strategic procurement functions across
 both the public and private sectors.


 •   The Clearview Group : Co-founder (2005 to date), a procurement services company
 •   Supplierforce: Chief Services Officer, with responsibility for professional services delivery.
 •   Takeda Pharmaceuticals North America, Inc (Chicago): US Head of Procurement ($1.2B in supplier spend)
 •   ABN AMRO North America, Inc (Chicago): VP of Corporate Planning and Strategic Sourcing ($1.7B in supplier
     spend)
 •   PricewaterhouseCoopers US (Chicago): Senior Strategy Consultant


 Stephen Pitcher – Provide Consulting Ltd – stephen@provide.ie – 086 6235551
     Stephen has worked in senior Procurement roles in the UK and Ireland for PLCs such as Allied Domecq,
     First Leisure and Hibernian/Aviva . He was a founder member of the Aviva International Procurement
     council. He founded Provide Consulting after leaving Hibernian and provides procurement services to a
     variety of SME and Corporate clients




                             3
Traditional Purchasing 
                                   g
                  Characteristics
Focus on short‐term savings

Tactically oriented vs. strategically focused
                                                                               Focus
Focused on Tangible Goods
                                                 Short-Term

Pre‐ Defined Specifications
                                                               Communication
Deal Driven (Adversarial) Relationships

No consistent measures to assess performance
                                                                          Performance

Communications not consistent                   Relationship

Suppliers lack knowledge of Group OPNs.
Procurement Characteristics 
                Today
Focus on total cost of ownership

Increased Focus on Service
                                               Short-Term                   Focus
                                                Long-Term
Strategically vs. Tactically oriented

Consistent assessment of performance
                                                            Communication
Clear direction in relationship development
                              p       p
                                                                        Relationship
Improved communication                        Performance


Enhanced knowledge of company business 
E h      dk  l d    f         b i
practices
Procurement  Defined




  Procurement is the process of creating
  and sustaining value and managing
    d    t i i     l     d         i
  external spend and activities through:
                                               • 40-60% of a company’s cost
                                                 base

  • the acquisition of goods and/or services   • significant impact on margins
  • at the best possible total cost of
    ownership,
    ownership                                  • Complex - thousands of
  • in the right quality and quantity,           suppliers with many more
  • at the right time,                           relationships
  • in the right place
             g p
  • and from the right source                  • C
                                                 Constantly changing
                                                         l h      i
  • for the direct benefit or use of the         environments (business,
    procuring organisation                       markets, people, regulation,
  • generally via a contract
                     contract.                   compliance etc.)




                       6
The  capability of your clients and target companies will vary




        PROCUREMENT CAPABILITY – WHERE ARE YOUR CLIENTS & PROSPECTS?

                       7
Behaviours of Procurement Function along the Capability Curve – a look at levels 1 to 3




             TRANSACTIONAL                               COMMERCIAL                                     PROACTIVE
1.   Tactical                           1. Follow process ‐ tenders                    1. Strategic – think in a business context
2.   No/Limited sphere of influence     2. Not independent thinkers – follow process   2. Ear of CFO/CEO
3.   Weak relationships with business   3. Limited sphere of influence                 3. Commercially, analytically strong
4.
4    Focus is on execution, process
     Focus is on execution process      4.
                                        4  Suspicious                                  4. Subject matter experts
                                                                                       4 Subject matter experts
5.   Not commercially savvy             5. Blinkered, somewhat narrow vision –         5. Independent, self directed
6.   Limited decision making               process and price                           6. Influence, may in fact control
7.   Distracted with day to day         6. Traditional negotiation and supplier        7. Open‐minded, progressive
                                           management methods – challenge,             8. Broader, more holistic view
                                           aggressive                                  9. Receptive to ideas
                                        7. Short term approach                         10. Relationship builders, leaders
                                                                                       11. Change managers
                                                                                       12. Thinkers ‐ innovation
Managing Procurement is challenging......and it has only become more so

Traditional Challenges
• Purchasing vs. Procurement –
  perceptions
• Lack of executive awareness
• Deliver savings
                                                 Shift from competitive advantage to
• Budgets reside outside of purchasing /         competitive survival
                                                         titi    i l
  procurement
                                                   • Massive pressure building on the
• Lack of procurement expertise in the               purchasing function
  business unit
                                                   • Look to cost base and
New Challenges
                                                     procurement for sustained
• Massive upheaval in global markets                 profitability
    • Contracting revenues                         • “Doing more with less”
    • Market share is under threat                 • Same quality / service for less
    • R d
      Reduced profitability and
            d     fit bilit   d                    • Manage and drive value
      competitiveness
    • Supply chain risk – company
      failures
      f il
Procurement 
What do they do?
The Sourcing Cycle



                             Value Creation                            Value Capture


       Define User   Profile the     Sourcing   Tender &   Implement   Performance
      Requirements   Category        Strategy    Award      Contract     Manage




                                   3-5 months                             3-5 years
         • Best practices
         • Order to chaos – categories, segmentation
         • Prioritise – categories, suppliers, resources – to deliver value
         • Cycle, not an event
            y
         • From tactical/short term to the strategic/long term
         • Information rich – business solutions
         • Plans solutions
           Plans,
         • Process + Management
         • Collaborate and engage – stakeholders and suppliers



                       11
Cost Drivers Review  
             Cost Drivers Review

  Supplier                                              Customer
                                                        C t



  Tariff                                                  Usage
                            Specification
(Unit Cost)                                               Costs
                               Costs


              Infrastructure Costs/ Transaction Costs
Procurement Strategy
                                              Procurement Strategy

                                                                                       Information

                                           Poor Service
Reduced Cost vs Higher Margin




                                                               ntification of Issues
                                            High Cost

                                                                                       Specification




                                                                           o
              s.     r




                                                                                       Performance
                                                            Iden                       Measurement
                                           Poor Service
                                            Low Cost
                                                                                        Sustainable
                                                                                        Cost Savings



                                Procurement Best Practice
How do Procurement Functions create  
                        Procurement Strategy…


Business Strategy         Dept. Strategy           Identify Suppliers       Internal Tactics           Communications
• Focus on Core         • Correct                  • Assess current        • Review Specifications   • Improve internally and
  Business                product/service            supplier base                                     externally
                                                                           • Provide Management
• Improve Quality of    • Improve Quality of       • Set Out Performance     Information             • Better information flow
  Information
  I f    ti               Information
                          I f    ti                  Criteria
                                                     C it i
                                                                           • Identify Appropriate    • Better access to global
• Reduce Cost Year on          •Reduce Number      • Allocate Resources      Budget Allocation         information
  Year                         of Suppliers
• Streamline Decision          •Reduce
  Making                       Processing Time
                               •Identify Cost at
                               Source
                        • Continuous quality
                          improvement
The Light at the End of the Tunnel!
The Light at the End of the Tunnel!
• Structure and Objectivity
   – Category Management
     Category Management
   – Supplier Management
• Global Requirements
• Non Core Requirements
  Non Core Requirements
   – CSR Agendas
• Risk, Auditability, Stability, Sustainability
     k    d bl           bl              bl
What can Suppliers do

1.   Categorise procurement functions
2.   Embrace Category and Supplier Management
3.   Contribute to the process
4.   Tools for suppliers
5.   Dos and Don’ts
Categorise the procurement 
               functions
• Review Procurement in light of maturity chart
  • Who’s at the meeting
  • Who reads the proposals
  • Are they looking at reducing invoices, CSR Report
            y      g           g                 p
  • Who will manage the contract
  • What issues do they discuss ; cost, volume, 
                       y         ;    ,        ,
    specification
  • How will value be measured 
  • What language do they use about Risk, Contingency, 
    Added Value 
Opportunities
• Category Management
  – Visibility
    Visibility 
  – Structure
• Supplier Management
  – Platform for measurement
  – Platform for stakeholder management
Contribute to the process 
        Contribute to the process
• Identify ways to help move the procurement function across 
  the maturity chart
• Sh
  Show an understanding of procurement challenges
             d t di        f            t h ll
• Need for short term savings 
   – Deliver short term benefits
     Deliver short term benefits
• Corporate unwillingness to partner with suppliers
   – Build trust with stakeholders
• Lack of understanding of procurement in client organisations
   – Demonstrate value of ongoing engagement in supplier management 
     process. Develop communications
     process Develop communications
• Risk in Supply Chain
   – Demonstrate risk avoidance
Dos and Don ts 
                         Dos and Don’ts

Do                              Don’t
Listen to Client
Li t t Cli t                    Tell him what you have
                                T ll hi   h t     h
Use an Executive Summary        Abuse an Executive Summary
Provide Solutions
Provide Solutions               Sell your product
                                Sell your product
Account Manager to attend       Sales people attend
Show Trust                      Start Tender with Confidentiality Clause
Show relevant CSR evidence      Engage in Corporate Boasting
Identify stakeholders           Pigeon hole stakeholders
Know why you are there          Just Tell them you value the business
Tips for Sales Professionals when Engaging with Procurement
Your goals are to win new clients, sell more to existing clients, be retained or increase ‘stickiness’, 
protect margin. These objectives may not necessarily conflict with the buyer’s objectives
   t t       i Th       bj ti             t          il     fli t ith th b      ’ bj ti


1. Gauge the capability of the procurement function
2. Identify the key stakeholders, don’t circumvent procurement
3. Understand how the procurement function organises spend, categories
4.
4 See your business through the client’s eyes - understand your category spend
                                   client s
   relative to other categories, complexity, importance to the business
5. Engage procurement – understand sourcing strategy for your category.
6.
6 Heighten your profile by providing objective, strategic guidance such as market
                                     objective
   intelligence, product developments.
7. Help to shape the prospect’s category strategy. They often need your help!
8.
8 Listen and understand the problem they are trying to address
9. Provide value - understand the prospect’s total cost structure for the model. Make
   those improvements if necessary
10.
10 In tenders, engage and answer the questions be creative and do not provide
      tenders                        questions,
    marketing fluff
11. Implementation is key – do not let the wheels fall off at the first hurdle
12.
12 Management - do not forget the client after the contract is signed – expect
    improvements, value, risk mitigation over the life of the contract.
                          21
Tool: Procurement Capability Framework




                                         Client 1   Client 2   Prospect 1 Prospect 2

1. Procurement Strategy
2. Total Cost Focus
3. Category & Supplier Mgmt
4. Stakeholders
5. Organisation (Skills, Structure)
6. Policy & Governance
7. Processes & System




                    22
Questions 
Questions

More Related Content

What's hot

PiR Resourcing client interim intro
PiR Resourcing client interim introPiR Resourcing client interim intro
PiR Resourcing client interim introphoey
 
2010 BDPA Natl Tech Conf Presentation Turning A Business Crisis Into A Reve...
2010 BDPA Natl Tech Conf Presentation   Turning A Business Crisis Into A Reve...2010 BDPA Natl Tech Conf Presentation   Turning A Business Crisis Into A Reve...
2010 BDPA Natl Tech Conf Presentation Turning A Business Crisis Into A Reve...MJD Management Group
 
Real world sourcing - Taking on a New Category
Real world sourcing - Taking on a New CategoryReal world sourcing - Taking on a New Category
Real world sourcing - Taking on a New CategoryBravoSolution
 
Retail procurement process and analysis
Retail procurement process and analysisRetail procurement process and analysis
Retail procurement process and analysisAmit Kumar Garg
 
Business Valuation in Exit Planning
Business Valuation in Exit PlanningBusiness Valuation in Exit Planning
Business Valuation in Exit PlanningSkoda Minotti
 
The Roig Group Client Intro July 2009
The Roig Group Client Intro July 2009The Roig Group Client Intro July 2009
The Roig Group Client Intro July 2009Rich_Christensen
 
Global Sourcing of Services Model
Global Sourcing of Services ModelGlobal Sourcing of Services Model
Global Sourcing of Services Modeloedger
 
True North Equities Services
True North Equities ServicesTrue North Equities Services
True North Equities Servicestnequities
 
Writing a Killer Marketing Plan
Writing a Killer Marketing PlanWriting a Killer Marketing Plan
Writing a Killer Marketing PlanSVPMA
 
Np ova for_service_providers_2013
Np ova for_service_providers_2013Np ova for_service_providers_2013
Np ova for_service_providers_2013richibh
 
Innovative Outsourcing Deal Structures
Innovative Outsourcing Deal StructuresInnovative Outsourcing Deal Structures
Innovative Outsourcing Deal StructuresJohn Meyerson
 
Strategy Development On A Shoestring Aug 08
Strategy Development On A Shoestring Aug 08Strategy Development On A Shoestring Aug 08
Strategy Development On A Shoestring Aug 08nitiagrawal
 
Capture Management Overview
Capture Management OverviewCapture Management Overview
Capture Management OverviewPatricia Sego
 
Clarity Management Consulting - How To Select Innovative Suppliers Using a 5-...
Clarity Management Consulting - How To Select Innovative Suppliers Using a 5-...Clarity Management Consulting - How To Select Innovative Suppliers Using a 5-...
Clarity Management Consulting - How To Select Innovative Suppliers Using a 5-...mjohns3500
 
Balanced Scorecard Intro To Basic Concepts
Balanced Scorecard   Intro To Basic ConceptsBalanced Scorecard   Intro To Basic Concepts
Balanced Scorecard Intro To Basic Conceptsngaungsan
 
Marketing Presentation 20 June 06 2010
Marketing Presentation 20 June 06 2010Marketing Presentation 20 June 06 2010
Marketing Presentation 20 June 06 2010ChrisTerlizzi
 
Bt27 mar2012a versluis
Bt27 mar2012a versluisBt27 mar2012a versluis
Bt27 mar2012a versluisHaniza Jasmani
 

What's hot (20)

PiR Resourcing client interim intro
PiR Resourcing client interim introPiR Resourcing client interim intro
PiR Resourcing client interim intro
 
2010 BDPA Natl Tech Conf Presentation Turning A Business Crisis Into A Reve...
2010 BDPA Natl Tech Conf Presentation   Turning A Business Crisis Into A Reve...2010 BDPA Natl Tech Conf Presentation   Turning A Business Crisis Into A Reve...
2010 BDPA Natl Tech Conf Presentation Turning A Business Crisis Into A Reve...
 
Pursuit Bid Process Map
Pursuit Bid Process MapPursuit Bid Process Map
Pursuit Bid Process Map
 
Real world sourcing - Taking on a New Category
Real world sourcing - Taking on a New CategoryReal world sourcing - Taking on a New Category
Real world sourcing - Taking on a New Category
 
Travel Transport And Leisure Offerings 2009
Travel Transport And Leisure Offerings 2009Travel Transport And Leisure Offerings 2009
Travel Transport And Leisure Offerings 2009
 
Retail procurement process and analysis
Retail procurement process and analysisRetail procurement process and analysis
Retail procurement process and analysis
 
Business Valuation in Exit Planning
Business Valuation in Exit PlanningBusiness Valuation in Exit Planning
Business Valuation in Exit Planning
 
The Roig Group Client Intro July 2009
The Roig Group Client Intro July 2009The Roig Group Client Intro July 2009
The Roig Group Client Intro July 2009
 
Global Sourcing of Services Model
Global Sourcing of Services ModelGlobal Sourcing of Services Model
Global Sourcing of Services Model
 
True North Equities Services
True North Equities ServicesTrue North Equities Services
True North Equities Services
 
Writing a Killer Marketing Plan
Writing a Killer Marketing PlanWriting a Killer Marketing Plan
Writing a Killer Marketing Plan
 
Np ova for_service_providers_2013
Np ova for_service_providers_2013Np ova for_service_providers_2013
Np ova for_service_providers_2013
 
Business Case Summary
Business Case SummaryBusiness Case Summary
Business Case Summary
 
Innovative Outsourcing Deal Structures
Innovative Outsourcing Deal StructuresInnovative Outsourcing Deal Structures
Innovative Outsourcing Deal Structures
 
Strategy Development On A Shoestring Aug 08
Strategy Development On A Shoestring Aug 08Strategy Development On A Shoestring Aug 08
Strategy Development On A Shoestring Aug 08
 
Capture Management Overview
Capture Management OverviewCapture Management Overview
Capture Management Overview
 
Clarity Management Consulting - How To Select Innovative Suppliers Using a 5-...
Clarity Management Consulting - How To Select Innovative Suppliers Using a 5-...Clarity Management Consulting - How To Select Innovative Suppliers Using a 5-...
Clarity Management Consulting - How To Select Innovative Suppliers Using a 5-...
 
Balanced Scorecard Intro To Basic Concepts
Balanced Scorecard   Intro To Basic ConceptsBalanced Scorecard   Intro To Basic Concepts
Balanced Scorecard Intro To Basic Concepts
 
Marketing Presentation 20 June 06 2010
Marketing Presentation 20 June 06 2010Marketing Presentation 20 June 06 2010
Marketing Presentation 20 June 06 2010
 
Bt27 mar2012a versluis
Bt27 mar2012a versluisBt27 mar2012a versluis
Bt27 mar2012a versluis
 

Viewers also liked

Sales institute briefing 27th jan (paul healy)
Sales institute briefing 27th jan (paul healy)Sales institute briefing 27th jan (paul healy)
Sales institute briefing 27th jan (paul healy)Sales Institute Ireland
 
Tw june2010 sales_compensation__performance_presentation_final_version_2
Tw june2010 sales_compensation__performance_presentation_final_version_2Tw june2010 sales_compensation__performance_presentation_final_version_2
Tw june2010 sales_compensation__performance_presentation_final_version_2Sales Institute Ireland
 
What it buyers really want john shaw - mainstream renewable power - 17 01-10
What it buyers really want   john shaw - mainstream renewable power - 17 01-10What it buyers really want   john shaw - mainstream renewable power - 17 01-10
What it buyers really want john shaw - mainstream renewable power - 17 01-10Sales Institute Ireland
 
National conference 2011 david walsh - eircom (26.05.11)
National conference 2011   david walsh - eircom (26.05.11)National conference 2011   david walsh - eircom (26.05.11)
National conference 2011 david walsh - eircom (26.05.11)Sales Institute Ireland
 
National conference 2011 vincent ryan - amdocs corporation (26.05.11)
National conference 2011   vincent ryan - amdocs corporation (26.05.11)National conference 2011   vincent ryan - amdocs corporation (26.05.11)
National conference 2011 vincent ryan - amdocs corporation (26.05.11)Sales Institute Ireland
 
National conference 2011 eddie o'brien - topaz energy (26.05.11)
National conference 2011   eddie o'brien - topaz energy (26.05.11)National conference 2011   eddie o'brien - topaz energy (26.05.11)
National conference 2011 eddie o'brien - topaz energy (26.05.11)Sales Institute Ireland
 
National conference 2011 niall harbison - simply zesty (26.05.11)
National conference 2011   niall harbison - simply zesty (26.05.11)National conference 2011   niall harbison - simply zesty (26.05.11)
National conference 2011 niall harbison - simply zesty (26.05.11)Sales Institute Ireland
 
Sales institute 21 04 10 frank rock effective leadership frank rock
Sales institute 21 04 10 frank rock effective leadership frank rockSales institute 21 04 10 frank rock effective leadership frank rock
Sales institute 21 04 10 frank rock effective leadership frank rockSales Institute Ireland
 
Sales institute chris martin slide deck 3 mar d2
Sales institute chris martin slide deck 3 mar d2Sales institute chris martin slide deck 3 mar d2
Sales institute chris martin slide deck 3 mar d2Sales Institute Ireland
 
National conference 2011 ben murphy - miele ireland (26.05.11)
National conference 2011   ben murphy - miele ireland (26.05.11)National conference 2011   ben murphy - miele ireland (26.05.11)
National conference 2011 ben murphy - miele ireland (26.05.11)Sales Institute Ireland
 
National conference 2011 john quinlan - rsa (26.05.11)
National conference 2011   john quinlan - rsa (26.05.11)National conference 2011   john quinlan - rsa (26.05.11)
National conference 2011 john quinlan - rsa (26.05.11)Sales Institute Ireland
 
New compensation models for maximising sales performance ron burke, towers ...
New compensation models for maximising sales performance   ron burke, towers ...New compensation models for maximising sales performance   ron burke, towers ...
New compensation models for maximising sales performance ron burke, towers ...Sales Institute Ireland
 
Digital marketing basics and trends
Digital marketing basics and trendsDigital marketing basics and trends
Digital marketing basics and trendsPriyanka Sharma
 

Viewers also liked (20)

Si25 feb2010tomharper
Si25 feb2010tomharperSi25 feb2010tomharper
Si25 feb2010tomharper
 
Sales institute briefing 27th jan (paul healy)
Sales institute briefing 27th jan (paul healy)Sales institute briefing 27th jan (paul healy)
Sales institute briefing 27th jan (paul healy)
 
Tw june2010 sales_compensation__performance_presentation_final_version_2
Tw june2010 sales_compensation__performance_presentation_final_version_2Tw june2010 sales_compensation__performance_presentation_final_version_2
Tw june2010 sales_compensation__performance_presentation_final_version_2
 
Sii sales management made easy -2003
Sii   sales management made easy -2003Sii   sales management made easy -2003
Sii sales management made easy -2003
 
What it buyers really want john shaw - mainstream renewable power - 17 01-10
What it buyers really want   john shaw - mainstream renewable power - 17 01-10What it buyers really want   john shaw - mainstream renewable power - 17 01-10
What it buyers really want john shaw - mainstream renewable power - 17 01-10
 
Sales insitute of ireland november 2010
Sales insitute of ireland november 2010Sales insitute of ireland november 2010
Sales insitute of ireland november 2010
 
Sales institute 2010 influencing
Sales institute 2010 influencingSales institute 2010 influencing
Sales institute 2010 influencing
 
National conference 2011 david walsh - eircom (26.05.11)
National conference 2011   david walsh - eircom (26.05.11)National conference 2011   david walsh - eircom (26.05.11)
National conference 2011 david walsh - eircom (26.05.11)
 
National conference 2011 vincent ryan - amdocs corporation (26.05.11)
National conference 2011   vincent ryan - amdocs corporation (26.05.11)National conference 2011   vincent ryan - amdocs corporation (26.05.11)
National conference 2011 vincent ryan - amdocs corporation (26.05.11)
 
National conference 2011 eddie o'brien - topaz energy (26.05.11)
National conference 2011   eddie o'brien - topaz energy (26.05.11)National conference 2011   eddie o'brien - topaz energy (26.05.11)
National conference 2011 eddie o'brien - topaz energy (26.05.11)
 
National conference 2011 niall harbison - simply zesty (26.05.11)
National conference 2011   niall harbison - simply zesty (26.05.11)National conference 2011   niall harbison - simply zesty (26.05.11)
National conference 2011 niall harbison - simply zesty (26.05.11)
 
S10 288 sii presentation october 2010
S10 288 sii presentation october 2010S10 288 sii presentation october 2010
S10 288 sii presentation october 2010
 
Sales institute 21 04 10 frank rock effective leadership frank rock
Sales institute 21 04 10 frank rock effective leadership frank rockSales institute 21 04 10 frank rock effective leadership frank rock
Sales institute 21 04 10 frank rock effective leadership frank rock
 
Sales institute chris martin slide deck 3 mar d2
Sales institute chris martin slide deck 3 mar d2Sales institute chris martin slide deck 3 mar d2
Sales institute chris martin slide deck 3 mar d2
 
National conference 2011 ben murphy - miele ireland (26.05.11)
National conference 2011   ben murphy - miele ireland (26.05.11)National conference 2011   ben murphy - miele ireland (26.05.11)
National conference 2011 ben murphy - miele ireland (26.05.11)
 
National conference 2011 john quinlan - rsa (26.05.11)
National conference 2011   john quinlan - rsa (26.05.11)National conference 2011   john quinlan - rsa (26.05.11)
National conference 2011 john quinlan - rsa (26.05.11)
 
New compensation models for maximising sales performance ron burke, towers ...
New compensation models for maximising sales performance   ron burke, towers ...New compensation models for maximising sales performance   ron burke, towers ...
New compensation models for maximising sales performance ron burke, towers ...
 
The digital marketing ppt
The digital marketing pptThe digital marketing ppt
The digital marketing ppt
 
Digital Marketing PPT
Digital Marketing PPTDigital Marketing PPT
Digital Marketing PPT
 
Digital marketing basics and trends
Digital marketing basics and trendsDigital marketing basics and trends
Digital marketing basics and trends
 

Similar to Sales institute11 01 19 v3 [read only](1)

Mirren Conference: Dealing with Procurement, David Wilson
Mirren Conference: Dealing with Procurement, David WilsonMirren Conference: Dealing with Procurement, David Wilson
Mirren Conference: Dealing with Procurement, David WilsonMirren Business Development
 
Paul O Harris Resume
Paul O Harris ResumePaul O Harris Resume
Paul O Harris Resumepauloharris
 
Paul O Harris Resume
Paul O Harris Resume Paul O Harris Resume
Paul O Harris Resume pauloharris
 
How to Grow Your Business By Making Acquisitions
How to Grow Your Business By Making AcquisitionsHow to Grow Your Business By Making Acquisitions
How to Grow Your Business By Making AcquisitionsSkoda Minotti
 
The Roig Group Client Intro July 2009
The Roig Group Client Intro July 2009The Roig Group Client Intro July 2009
The Roig Group Client Intro July 2009Mark Fries
 
Ensuring success with your component content management system
Ensuring success with your component content management systemEnsuring success with your component content management system
Ensuring success with your component content management systemScriptorium Publishing
 
Roger Davies, Group Head of Procurement at Marks & Spencer - Our capability d...
Roger Davies, Group Head of Procurement at Marks & Spencer - Our capability d...Roger Davies, Group Head of Procurement at Marks & Spencer - Our capability d...
Roger Davies, Group Head of Procurement at Marks & Spencer - Our capability d...Global Business Events
 
Taking your reference program global
Taking your reference program globalTaking your reference program global
Taking your reference program globalcarolineatmetia
 
Managed IT Presentation
Managed IT PresentationManaged IT Presentation
Managed IT PresentationTomsmyth1
 
Marketing And Branding A Psf Oct 2012
Marketing And Branding A Psf Oct 2012Marketing And Branding A Psf Oct 2012
Marketing And Branding A Psf Oct 2012Robert_Sawhney
 
On sales - Talk by Paul Shoker
On sales - Talk by Paul ShokerOn sales - Talk by Paul Shoker
On sales - Talk by Paul ShokerNeeraj Hirani
 
PURCHASING DECISION AND BUSINESS STRATEGY
PURCHASING DECISION  AND BUSINESS STRATEGYPURCHASING DECISION  AND BUSINESS STRATEGY
PURCHASING DECISION AND BUSINESS STRATEGYZamri Yahya
 
Increasing Your Company's Value
Increasing Your Company's ValueIncreasing Your Company's Value
Increasing Your Company's Valuestanmaupin
 
Go-to-Market Strategy with Jon Dogterom - Entrepreneurship 101
Go-to-Market Strategy with Jon Dogterom - Entrepreneurship 101Go-to-Market Strategy with Jon Dogterom - Entrepreneurship 101
Go-to-Market Strategy with Jon Dogterom - Entrepreneurship 101MaRS Discovery District
 
Selecting consultants - the process
Selecting consultants - the processSelecting consultants - the process
Selecting consultants - the processJohn Cachat
 
Thought Leadership as Sales Strategy
Thought Leadership as Sales StrategyThought Leadership as Sales Strategy
Thought Leadership as Sales StrategyForum Corporation
 
World class procurement and your business
World class procurement and your business World class procurement and your business
World class procurement and your business Procurement For Housing
 
Linked in presentation
Linked in presentationLinked in presentation
Linked in presentationagplugge
 
Integrating the Role of Fee Earners, Marketing and BD
Integrating the Role of Fee Earners, Marketing and BDIntegrating the Role of Fee Earners, Marketing and BD
Integrating the Role of Fee Earners, Marketing and BDRobert_Sawhney
 
Keith Jones Value Proposition
Keith Jones Value PropositionKeith Jones Value Proposition
Keith Jones Value Propositionkcj06019
 

Similar to Sales institute11 01 19 v3 [read only](1) (20)

Mirren Conference: Dealing with Procurement, David Wilson
Mirren Conference: Dealing with Procurement, David WilsonMirren Conference: Dealing with Procurement, David Wilson
Mirren Conference: Dealing with Procurement, David Wilson
 
Paul O Harris Resume
Paul O Harris ResumePaul O Harris Resume
Paul O Harris Resume
 
Paul O Harris Resume
Paul O Harris Resume Paul O Harris Resume
Paul O Harris Resume
 
How to Grow Your Business By Making Acquisitions
How to Grow Your Business By Making AcquisitionsHow to Grow Your Business By Making Acquisitions
How to Grow Your Business By Making Acquisitions
 
The Roig Group Client Intro July 2009
The Roig Group Client Intro July 2009The Roig Group Client Intro July 2009
The Roig Group Client Intro July 2009
 
Ensuring success with your component content management system
Ensuring success with your component content management systemEnsuring success with your component content management system
Ensuring success with your component content management system
 
Roger Davies, Group Head of Procurement at Marks & Spencer - Our capability d...
Roger Davies, Group Head of Procurement at Marks & Spencer - Our capability d...Roger Davies, Group Head of Procurement at Marks & Spencer - Our capability d...
Roger Davies, Group Head of Procurement at Marks & Spencer - Our capability d...
 
Taking your reference program global
Taking your reference program globalTaking your reference program global
Taking your reference program global
 
Managed IT Presentation
Managed IT PresentationManaged IT Presentation
Managed IT Presentation
 
Marketing And Branding A Psf Oct 2012
Marketing And Branding A Psf Oct 2012Marketing And Branding A Psf Oct 2012
Marketing And Branding A Psf Oct 2012
 
On sales - Talk by Paul Shoker
On sales - Talk by Paul ShokerOn sales - Talk by Paul Shoker
On sales - Talk by Paul Shoker
 
PURCHASING DECISION AND BUSINESS STRATEGY
PURCHASING DECISION  AND BUSINESS STRATEGYPURCHASING DECISION  AND BUSINESS STRATEGY
PURCHASING DECISION AND BUSINESS STRATEGY
 
Increasing Your Company's Value
Increasing Your Company's ValueIncreasing Your Company's Value
Increasing Your Company's Value
 
Go-to-Market Strategy with Jon Dogterom - Entrepreneurship 101
Go-to-Market Strategy with Jon Dogterom - Entrepreneurship 101Go-to-Market Strategy with Jon Dogterom - Entrepreneurship 101
Go-to-Market Strategy with Jon Dogterom - Entrepreneurship 101
 
Selecting consultants - the process
Selecting consultants - the processSelecting consultants - the process
Selecting consultants - the process
 
Thought Leadership as Sales Strategy
Thought Leadership as Sales StrategyThought Leadership as Sales Strategy
Thought Leadership as Sales Strategy
 
World class procurement and your business
World class procurement and your business World class procurement and your business
World class procurement and your business
 
Linked in presentation
Linked in presentationLinked in presentation
Linked in presentation
 
Integrating the Role of Fee Earners, Marketing and BD
Integrating the Role of Fee Earners, Marketing and BDIntegrating the Role of Fee Earners, Marketing and BD
Integrating the Role of Fee Earners, Marketing and BD
 
Keith Jones Value Proposition
Keith Jones Value PropositionKeith Jones Value Proposition
Keith Jones Value Proposition
 

More from Sales Institute Ireland

More from Sales Institute Ireland (13)

S10 054 sii presentation february 2010 final
S10 054 sii presentation february 2010 finalS10 054 sii presentation february 2010 final
S10 054 sii presentation february 2010 final
 
Irish economy recovery
Irish economy recoveryIrish economy recovery
Irish economy recovery
 
Oct sales institute
Oct sales instituteOct sales institute
Oct sales institute
 
Largo foods tay to
Largo foods tay toLargo foods tay to
Largo foods tay to
 
Market leaders - Paul o'riordan
Market leaders -  Paul o'riordan Market leaders -  Paul o'riordan
Market leaders - Paul o'riordan
 
Hp brian hurley
Hp brian hurley Hp brian hurley
Hp brian hurley
 
How to become a better influencer in sales(1)
How to become a better influencer in sales(1)How to become a better influencer in sales(1)
How to become a better influencer in sales(1)
 
Clodagh o'donnell presentation
Clodagh o'donnell presentationClodagh o'donnell presentation
Clodagh o'donnell presentation
 
Global & irish economic outlook john beggs, aib 17 02-11
Global & irish economic outlook   john beggs, aib 17 02-11Global & irish economic outlook   john beggs, aib 17 02-11
Global & irish economic outlook john beggs, aib 17 02-11
 
Global & irish economic outlook john beggs, aib 17 02-11
Global & irish economic outlook   john beggs, aib 17 02-11Global & irish economic outlook   john beggs, aib 17 02-11
Global & irish economic outlook john beggs, aib 17 02-11
 
Brightwater economy, jobs & remuneration
Brightwater   economy, jobs & remunerationBrightwater   economy, jobs & remuneration
Brightwater economy, jobs & remuneration
 
Bord gais Energy-think beyond time
Bord gais Energy-think beyond timeBord gais Energy-think beyond time
Bord gais Energy-think beyond time
 
Sales instit pres
Sales instit presSales instit pres
Sales instit pres
 

Recently uploaded

Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg PfizerJual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg PfizerPusat Herbal
 
First Time Home Buyer's Guide - KM Realty Group LLC
First Time Home Buyer's Guide - KM Realty Group LLCFirst Time Home Buyer's Guide - KM Realty Group LLC
First Time Home Buyer's Guide - KM Realty Group LLCTammy Jackson
 
SCI9-Q4-MOD9.pdfetiwtitw3i3uu45w5wtitwjt
SCI9-Q4-MOD9.pdfetiwtitw3i3uu45w5wtitwjtSCI9-Q4-MOD9.pdfetiwtitw3i3uu45w5wtitwjt
SCI9-Q4-MOD9.pdfetiwtitw3i3uu45w5wtitwjtadimosmejiaslendon
 
Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...
Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...
Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...CIO Look Magazine
 
Chapter 2 Organization Structure of a Treasury
Chapter 2 Organization Structure of a TreasuryChapter 2 Organization Structure of a Treasury
Chapter 2 Organization Structure of a TreasurySarunChhetri1
 
The Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and UncertaintyThe Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and Uncertaintycapivisgroup
 
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![© ر
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![©  ر00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![©  ر
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![© رnafizanafzal
 
Navigating Tax Season with Confidence Streamlines CPA Firms
Navigating Tax Season with Confidence Streamlines CPA FirmsNavigating Tax Season with Confidence Streamlines CPA Firms
Navigating Tax Season with Confidence Streamlines CPA FirmsYourLegal Accounting
 
SCI9-Q4-MOD8.1.pdfjttstwjwetw55k5wwtwrjw
SCI9-Q4-MOD8.1.pdfjttstwjwetw55k5wwtwrjwSCI9-Q4-MOD8.1.pdfjttstwjwetw55k5wwtwrjw
SCI9-Q4-MOD8.1.pdfjttstwjwetw55k5wwtwrjwadimosmejiaslendon
 
Unlocking Growth The Power of Outsourcing for CPA Firms
Unlocking Growth The Power of Outsourcing for CPA FirmsUnlocking Growth The Power of Outsourcing for CPA Firms
Unlocking Growth The Power of Outsourcing for CPA FirmsYourLegal Accounting
 
如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证ogawka
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312LR1709MUSIC
 
Elevate Your Online Presence with SEO Services
Elevate Your Online Presence with SEO ServicesElevate Your Online Presence with SEO Services
Elevate Your Online Presence with SEO ServicesHaseebBashir5
 
Beyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic AccountingBeyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic AccountingYourLegal Accounting
 
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...yulianti213969
 

Recently uploaded (20)

Obat Aborsi Malang 0851\7696\3835 Jual Obat Cytotec Di Malang
Obat Aborsi Malang 0851\7696\3835 Jual Obat Cytotec Di MalangObat Aborsi Malang 0851\7696\3835 Jual Obat Cytotec Di Malang
Obat Aborsi Malang 0851\7696\3835 Jual Obat Cytotec Di Malang
 
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg PfizerJual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
 
First Time Home Buyer's Guide - KM Realty Group LLC
First Time Home Buyer's Guide - KM Realty Group LLCFirst Time Home Buyer's Guide - KM Realty Group LLC
First Time Home Buyer's Guide - KM Realty Group LLC
 
SCI9-Q4-MOD9.pdfetiwtitw3i3uu45w5wtitwjt
SCI9-Q4-MOD9.pdfetiwtitw3i3uu45w5wtitwjtSCI9-Q4-MOD9.pdfetiwtitw3i3uu45w5wtitwjt
SCI9-Q4-MOD9.pdfetiwtitw3i3uu45w5wtitwjt
 
Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...
Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...
Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...
 
Chapter 2 Organization Structure of a Treasury
Chapter 2 Organization Structure of a TreasuryChapter 2 Organization Structure of a Treasury
Chapter 2 Organization Structure of a Treasury
 
The Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and UncertaintyThe Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and Uncertainty
 
Obat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di Surabaya
Obat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di SurabayaObat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di Surabaya
Obat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di Surabaya
 
Obat Aborsi Depok 0851\7696\3835 Jual Obat Cytotec Di Depok
Obat Aborsi Depok 0851\7696\3835 Jual Obat Cytotec Di DepokObat Aborsi Depok 0851\7696\3835 Jual Obat Cytotec Di Depok
Obat Aborsi Depok 0851\7696\3835 Jual Obat Cytotec Di Depok
 
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![© ر
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![©  ر00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![©  ر
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![© ر
 
Navigating Tax Season with Confidence Streamlines CPA Firms
Navigating Tax Season with Confidence Streamlines CPA FirmsNavigating Tax Season with Confidence Streamlines CPA Firms
Navigating Tax Season with Confidence Streamlines CPA Firms
 
SCI9-Q4-MOD8.1.pdfjttstwjwetw55k5wwtwrjw
SCI9-Q4-MOD8.1.pdfjttstwjwetw55k5wwtwrjwSCI9-Q4-MOD8.1.pdfjttstwjwetw55k5wwtwrjw
SCI9-Q4-MOD8.1.pdfjttstwjwetw55k5wwtwrjw
 
Unlocking Growth The Power of Outsourcing for CPA Firms
Unlocking Growth The Power of Outsourcing for CPA FirmsUnlocking Growth The Power of Outsourcing for CPA Firms
Unlocking Growth The Power of Outsourcing for CPA Firms
 
Home Furnishings Ecommerce Platform Short Pitch 2024
Home Furnishings Ecommerce Platform Short Pitch 2024Home Furnishings Ecommerce Platform Short Pitch 2024
Home Furnishings Ecommerce Platform Short Pitch 2024
 
如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
 
Elevate Your Online Presence with SEO Services
Elevate Your Online Presence with SEO ServicesElevate Your Online Presence with SEO Services
Elevate Your Online Presence with SEO Services
 
WAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdfWAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdf
 
Beyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic AccountingBeyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic Accounting
 
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
 

Sales institute11 01 19 v3 [read only](1)

  • 1. Sales Institute David Coffey  The Clearview Group David Coffey – The Clearview Group Stephen Pitcher – Provide Consultants 19TH January 2011 2011
  • 2. Agenda  Agenda Introduction – Who we are 1. What is Purchasing /Procurement What is Purchasing /Procurement 1. When does it start? 2. What are the different levels of procurement maturity within clients organisations 3. 3 What challenges does procurement face What challenges does procurement face 4. Outline ways to identify the procurement behaviours of clients 2. Procurement Practices 1. 1 What do they do  What do they do 2. How do they plan, identify strategies 3. What tools do procurement use 4. 4 What does this mean for you What does this mean for you 5. Identify ways to engage with different levels of procurement 3. How do suppliers respond 1. 1 How to categorise procurement functions How to categorise procurement functions 2. Category and Supplier Management 3. Tools for suppliers 4. 4 Top Tips  T Ti
  • 3. Introduction David Coffey – The Clearview Group – david.coffey@clearviewgroup.ie / 087.137.0798 David has extensive experience building, managing, and transforming strategic procurement functions across both the public and private sectors. • The Clearview Group : Co-founder (2005 to date), a procurement services company • Supplierforce: Chief Services Officer, with responsibility for professional services delivery. • Takeda Pharmaceuticals North America, Inc (Chicago): US Head of Procurement ($1.2B in supplier spend) • ABN AMRO North America, Inc (Chicago): VP of Corporate Planning and Strategic Sourcing ($1.7B in supplier spend) • PricewaterhouseCoopers US (Chicago): Senior Strategy Consultant Stephen Pitcher – Provide Consulting Ltd – stephen@provide.ie – 086 6235551 Stephen has worked in senior Procurement roles in the UK and Ireland for PLCs such as Allied Domecq, First Leisure and Hibernian/Aviva . He was a founder member of the Aviva International Procurement council. He founded Provide Consulting after leaving Hibernian and provides procurement services to a variety of SME and Corporate clients 3
  • 4. Traditional Purchasing  g Characteristics Focus on short‐term savings Tactically oriented vs. strategically focused Focus Focused on Tangible Goods Short-Term Pre‐ Defined Specifications Communication Deal Driven (Adversarial) Relationships No consistent measures to assess performance Performance Communications not consistent Relationship Suppliers lack knowledge of Group OPNs.
  • 5. Procurement Characteristics  Today Focus on total cost of ownership Increased Focus on Service Short-Term Focus Long-Term Strategically vs. Tactically oriented Consistent assessment of performance Communication Clear direction in relationship development p p Relationship Improved communication Performance Enhanced knowledge of company business  E h dk l d f b i practices
  • 6. Procurement  Defined Procurement is the process of creating and sustaining value and managing d t i i l d i external spend and activities through: • 40-60% of a company’s cost base • the acquisition of goods and/or services • significant impact on margins • at the best possible total cost of ownership, ownership • Complex - thousands of • in the right quality and quantity, suppliers with many more • at the right time, relationships • in the right place g p • and from the right source • C Constantly changing l h i • for the direct benefit or use of the environments (business, procuring organisation markets, people, regulation, • generally via a contract contract. compliance etc.) 6
  • 7. The  capability of your clients and target companies will vary PROCUREMENT CAPABILITY – WHERE ARE YOUR CLIENTS & PROSPECTS? 7
  • 8. Behaviours of Procurement Function along the Capability Curve – a look at levels 1 to 3 TRANSACTIONAL COMMERCIAL PROACTIVE 1. Tactical 1. Follow process ‐ tenders 1. Strategic – think in a business context 2. No/Limited sphere of influence 2. Not independent thinkers – follow process 2. Ear of CFO/CEO 3. Weak relationships with business 3. Limited sphere of influence 3. Commercially, analytically strong 4. 4 Focus is on execution, process Focus is on execution process 4. 4 Suspicious 4. Subject matter experts 4 Subject matter experts 5. Not commercially savvy 5. Blinkered, somewhat narrow vision – 5. Independent, self directed 6. Limited decision making process and price 6. Influence, may in fact control 7. Distracted with day to day 6. Traditional negotiation and supplier  7. Open‐minded, progressive management methods – challenge,  8. Broader, more holistic view aggressive 9. Receptive to ideas 7. Short term approach 10. Relationship builders, leaders 11. Change managers 12. Thinkers ‐ innovation
  • 9. Managing Procurement is challenging......and it has only become more so Traditional Challenges • Purchasing vs. Procurement – perceptions • Lack of executive awareness • Deliver savings Shift from competitive advantage to • Budgets reside outside of purchasing / competitive survival titi i l procurement • Massive pressure building on the • Lack of procurement expertise in the purchasing function business unit • Look to cost base and New Challenges procurement for sustained • Massive upheaval in global markets profitability • Contracting revenues • “Doing more with less” • Market share is under threat • Same quality / service for less • R d Reduced profitability and d fit bilit d • Manage and drive value competitiveness • Supply chain risk – company failures f il
  • 11. The Sourcing Cycle Value Creation Value Capture Define User Profile the Sourcing Tender & Implement Performance Requirements Category Strategy Award Contract Manage 3-5 months 3-5 years • Best practices • Order to chaos – categories, segmentation • Prioritise – categories, suppliers, resources – to deliver value • Cycle, not an event y • From tactical/short term to the strategic/long term • Information rich – business solutions • Plans solutions Plans, • Process + Management • Collaborate and engage – stakeholders and suppliers 11
  • 12. Cost Drivers Review   Cost Drivers Review Supplier Customer C t Tariff Usage Specification (Unit Cost) Costs Costs Infrastructure Costs/ Transaction Costs
  • 13. Procurement Strategy Procurement Strategy Information Poor Service Reduced Cost vs Higher Margin ntification of Issues High Cost Specification o s. r Performance Iden Measurement Poor Service Low Cost Sustainable Cost Savings Procurement Best Practice
  • 14. How do Procurement Functions create   Procurement Strategy… Business Strategy Dept. Strategy Identify Suppliers Internal Tactics Communications • Focus on Core • Correct • Assess current • Review Specifications • Improve internally and Business product/service supplier base externally • Provide Management • Improve Quality of • Improve Quality of • Set Out Performance Information • Better information flow Information I f ti Information I f ti Criteria C it i • Identify Appropriate • Better access to global • Reduce Cost Year on •Reduce Number • Allocate Resources Budget Allocation information Year of Suppliers • Streamline Decision •Reduce Making Processing Time •Identify Cost at Source • Continuous quality improvement
  • 15. The Light at the End of the Tunnel! The Light at the End of the Tunnel! • Structure and Objectivity – Category Management Category Management – Supplier Management • Global Requirements • Non Core Requirements Non Core Requirements – CSR Agendas • Risk, Auditability, Stability, Sustainability k d bl bl bl
  • 16. What can Suppliers do 1. Categorise procurement functions 2. Embrace Category and Supplier Management 3. Contribute to the process 4. Tools for suppliers 5. Dos and Don’ts
  • 17. Categorise the procurement  functions • Review Procurement in light of maturity chart • Who’s at the meeting • Who reads the proposals • Are they looking at reducing invoices, CSR Report y g g p • Who will manage the contract • What issues do they discuss ; cost, volume,  y ; , , specification • How will value be measured  • What language do they use about Risk, Contingency,  Added Value 
  • 18. Opportunities • Category Management – Visibility Visibility  – Structure • Supplier Management – Platform for measurement – Platform for stakeholder management
  • 19. Contribute to the process  Contribute to the process • Identify ways to help move the procurement function across  the maturity chart • Sh Show an understanding of procurement challenges d t di f t h ll • Need for short term savings  – Deliver short term benefits Deliver short term benefits • Corporate unwillingness to partner with suppliers – Build trust with stakeholders • Lack of understanding of procurement in client organisations – Demonstrate value of ongoing engagement in supplier management  process. Develop communications process Develop communications • Risk in Supply Chain – Demonstrate risk avoidance
  • 20. Dos and Don ts  Dos and Don’ts Do Don’t Listen to Client Li t t Cli t Tell him what you have T ll hi h t h Use an Executive Summary Abuse an Executive Summary Provide Solutions Provide Solutions Sell your product Sell your product Account Manager to attend Sales people attend Show Trust Start Tender with Confidentiality Clause Show relevant CSR evidence Engage in Corporate Boasting Identify stakeholders Pigeon hole stakeholders Know why you are there Just Tell them you value the business
  • 21. Tips for Sales Professionals when Engaging with Procurement Your goals are to win new clients, sell more to existing clients, be retained or increase ‘stickiness’,  protect margin. These objectives may not necessarily conflict with the buyer’s objectives t t i Th bj ti t il fli t ith th b ’ bj ti 1. Gauge the capability of the procurement function 2. Identify the key stakeholders, don’t circumvent procurement 3. Understand how the procurement function organises spend, categories 4. 4 See your business through the client’s eyes - understand your category spend client s relative to other categories, complexity, importance to the business 5. Engage procurement – understand sourcing strategy for your category. 6. 6 Heighten your profile by providing objective, strategic guidance such as market objective intelligence, product developments. 7. Help to shape the prospect’s category strategy. They often need your help! 8. 8 Listen and understand the problem they are trying to address 9. Provide value - understand the prospect’s total cost structure for the model. Make those improvements if necessary 10. 10 In tenders, engage and answer the questions be creative and do not provide tenders questions, marketing fluff 11. Implementation is key – do not let the wheels fall off at the first hurdle 12. 12 Management - do not forget the client after the contract is signed – expect improvements, value, risk mitigation over the life of the contract. 21
  • 22. Tool: Procurement Capability Framework Client 1 Client 2 Prospect 1 Prospect 2 1. Procurement Strategy 2. Total Cost Focus 3. Category & Supplier Mgmt 4. Stakeholders 5. Organisation (Skills, Structure) 6. Policy & Governance 7. Processes & System 22