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careful examination or scrutiny.
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Sanet Shepperson Guest Speaker presentation 13 September 2016 FV
1. First 90 Days in your Dream Procurement Position
Sanet Shepperson MCIPS
Procurement Executive
Cell C
COMPANY
LOGO HERE
2.
3. You have been headhunted and you
will be starting in your dream
procurement leadership position in 30
Days.
Now what?
COMPANY
LOGO HERE
4. Stage One: 30 Days before you start
Knowledge gathering about:
• Organisation
• Values
• Objectives
• BBBEE
• Internal stakeholders
• External stakeholders
COMPANY
LOGO HERE
5. Stage Two: First 30 Days
• Understand the Objectives of your
business and how procurement
needs to support it.
• Gain the trust of the team
• Ethics & Integrity
• Get training on the IT system if it’s
unfamiliar to you and gain access to
all relevant data
COMPANY
LOGO HERE
6. Stage Two: First 30 Days: Administration
• Levels or Authority, delegation of authority
• Current policy and procedure
• Budgets/Forex /Trade Finance/Trade Day’s Cover/Cash flow
implications, Rebates, Inco Terms
• BOM- Production
• Capex Projects
• Stock holding, Aged stock, DSC per Category, Lead Time’s, Open
to Purchase, SIT.
• Marketing Campaigns
• Other executives
• Suppliers/Kraljic
• Current Category strategies
• Contract management
• Risk
COMPANY
LOGO HERE
7. Stage 3: 30-60 Days
• Use the 80/20 rule and enable your team to create A:new
strategies or B: review the strategies for the main
categories.
• Ensure that procurement strategies align with the
business objectives.(Ebitda / Commercial)
• Ensure that Team members understand the importance
of timelines for internal staff. Ensure that the Team
understands that the procurement team Must be agile in
their dealings.
COMPANY
LOGO HERE
8. Stage 3: 30-60 Days
• Create KPI’s (Key Performance Indicators)
that are SMART Measure the KPI’s every
month.
– Value add/savings, Sales Growth, Margin
growth, Innovation, internal customer
service
• Start reviewing all policies, processes,
procedures and documentation of the
procurement department. Involve internal
audit.
COMPANY
LOGO HERE
9. Pay additional attention to the following during this
period:
• If there is not a preferred supplier list implement one;
• Standardise Vendor listing procedure and ensure that you
sign off every new authorization;
• Consolidate supplier contracts in a safe space in both hard
copy and soft copy. Keep a report as to what will be
expiring when;
• Create standard templates and terms and conditions for
purchase orders;
• Article master, investigate and review, Reporting
COMPANY
LOGO HERE
10. Reporting:
• Institute a weekly senior manager meeting;
• Institute a weekly full team meeting, where they talk through
their current Rfx’s;
• Rfx’s (Request for : Proposals, Information, Quotations) report
as to what is running in each category;
• Create a Contract report setting out what contracts are in
process;
• Savings/benefit report as to what savings are being
negotiated;
• Unauthorised/ emergency Purchase order report.
COMPANY
LOGO HERE
11. Stage 4: 60-90 Days
• The staff should be comfortable with you and understand
their boundaries. The staff should know what you expect of
them. You will now know the staff well enough by this stage
to know who needs more training, who needs encouragement
and who might end up in disciplinary action. Keep your HR
partner involved at all times.
• You will still be creating the Policy with supporting procedures
and supporting documents. Ensure that you get all
stakeholders to sign them off before you submit them to your
director.
• Hold the reins of the team very tightly and manage the KPI’s
very closely.
COMPANY
LOGO HERE
12. Stage 4: 60-90 Days
Disciplinary action should be taken in the
following instances because indirectly it will
ruin your reputation.
• Missing Deadlines
• Insubordination
• Attention to detail
• Incorrect information
• Ethics
COMPANY
LOGO HERE
13. Stage 4: 60-90 Days
• Start rewarding good performance and in general try to
catch staff doing something right, but under no
circumstances accept tardiness, laziness and poor
performance from your team. Above all, lead by
example.
• The above is only a very short synopsis. I have found
that various companies and teams have various needs
and an entire book could be written on this topic.
However, if you take note of the above points, the
transition into your dream job should be virtually
painless.
COMPANY
LOGO HERE
14. In Conclusion
• Always lead by example in your conduct and standards; never expect your
staff to do something that you are not willing to do.
• Act Ethically and with Integrity
• Set KPI’s and SMART Goals to support company objectives
• Review and improve policies, procedures and supporting documents
• Motivate and inspire supply chain partners (Stakeholders) to collaborate
and improve
• Mobilise and develop resources and capabilities within the procurement
department.
• Introduce change (contracts, relationships, processes and systems) in a
constructive, supportive and, where possible, collaboratively.
• Change the perception of procurement.
• Remember, you are there to make your new team THRIVE, not only
SURVIVE
COMPANY
LOGO HERE
Good morning I am Sanet Shepperson the procurement executive of Cell C
Today I am here to share with you insights on the first 90 day in your dream procurement position.
Who of you by show of hands is looking to change your position in the next year?
I personally think that you should not stay in the same position for more that three years, for the company needs fresh eyes and you will need a new challenge.
You have been head hunted, you have that offer you have wanted and you have resigned.
Now what?
Where do we go to from here?
You should be fluent in regards to the organization
Use your friend google to find our about the organisation, standard questions?
Who is their customers
What is the main product lines
When is their peak season, relates to supply chain
Where is their offices , supply chain
Values and objectives
Research and understand them especially objectives. This can be vastly different from organization to organisation.
I am currently with Cell C as you can see, and I understand their objectives clearly. I am also a Methodist so I am the management there as well, and boy if I had to apply the same objectives in the different organisations I would most certainly be dismissed from both. That was a joke, but just to clarify, the one is a for profit organisation the other is not.
Internal stakeholders
Request all the CV’s from HR for your Team
Their HR records, if any warnings, disciplinary records
Sick leave, annual leave.
Google them, check facebook, linked in..
You need to know them before you start,
They must not see you coming.
Also other executives. What can you see to build up rapport? For you will need their corporation..
External stakeholders
Get a list of the top 50 supplier and review their websites to understand their management structure and the nature of their industries.
This also helps when you have your initial introductions.
Objectives in details:
Understand the objectives in details – EBDTA targets Market growth , Fastest network.
How do we align and support? That is our sole function.
Gain the trust of the team, do not over react, threat them fairly, for they are afraid of you.
We had a new Executive starting. She was in over her head. She had no category management experience. She refused to greet anybody.She asked for things she could not give us the templates she had no clue. She expected category plans for the whole business to be presented in two weeks, the timelines were unrealistic. She exspected us to do launces in Shayandima in a day and drive back to Gauteng. Which is impossible. Who knows where shayndima is? It is far! The suppliers was up in arms for se did not accept LME increases, where that has nothing to do with the supplier.
It ended in a group grievance, and she was asked to leave. Since then I think she has had two other short timed positions. Due to Low EQ and nor being able to work with a team.
Ask all the team members what is wrong in their opinion? What can be fixed? What is the way forward in their opinion.
Lastly get training on the IT system So that you need not to ask to get information you need.
These are the things that can bite you..Hard
DOA – who can sign off what? What can you sign off? Who will sign of when not available?
Current policy and procedure- What is the current rules?
Finance! Hellishly important- Budgets – Sales, Gp, Spend budgets, capex, opex ect Do you have forward cover? Is the landed cost guaranteed? Cash flow Implications, do we need to extend trade days? Are we cash flush or under pressure?
Rebates? How do we collect?
Inco terms?
If you are manufacturing what is the BOM for the projects?
Stock holding
Target days?
What is your aged stock %
Is there aged stock support?
Lead times?
Open to purchase?
Stock in transit?
Meet other executives and ask them what is their opinion of the procurement department : SWOT in their opinion and how can procurement support their outcomes?
Suppliers – Segment them in the Krajic matrix so that you know where the focus should be
Understand current category strategies.. And start thinking where there might be opportunities to improve and adapt.
Contract management: which contracts is coming up for renewal?
Risk register, as all staff if there is any potholes that they know about.
Ebitda
Procurement is responsible for the spend of the business and cost containment and value add is paramount to achieve Ebitda. Ensure you understand and strategise how your budget will support the business to achieve its goals.
Timelines must be realistic however they need to be adhered to
Internal audit will need to support you.
Ensure that all policies in place is adhered to.
Start a process of reviewing all procurement policies and improve them where you see nessesary.
Vendor listing procedure – Conflict of intrest – ethics
Contrcats, up to 20% were “lost” misplaced.
Sometimes this sits in legal? This will effect you ensure you have all contracts available.
Article master – The foundation of all tracking. This is very important for accurate reporting! If you can not measure your purchases you can not manage it. Ensure that article listing gets signed off by yourself/executive and ensure that the loading is done to your requirement.
Misiing deadline equates missing budgets
Insubordination – do not let the team confuse your friendliness with weakness.
Attention to detail – you do not have the time to recheck everything, information needs to be submitted correctly. I have no patience for this.
Incorrect information : you will make you look foolish and incomepetent.
Ethics: in procurement you are your reputation. If you have any inclanation that there is a problem take immediate action.