Sourcing

Copyright © 2011 IAOP. All Rights Reserved.
Sourcing Competence Center 2.0: Saving Costs Using eSCM-CL
Henk GrevelmanDirector IT Strategy & GovernanceAchmea InsuranceArno IJmkerManaging PartnerQuint Wellington Redwood
www.IAOP.org
The 2011 Outsourcing World Summit®
Renaissance Esmeralda Resort Indian Wells, California February 21-23, 2011

SESSION OBJECTIVES
1.
To show the business benefits of Achmea’s sourcing approach for your own organization
2.
To give insight why Achmea decided to set up a Sourcing Competence Center using eSCM-CL as a framework
3.
To show how Achmea implemented this within a short time frame using a project approach
4.
To demonstrate the clear results from this project (decision tree and cookbook)
5.
To share the lessons learned from the project

AGENDA

Achmea Insurance

Outsourcing at Achmea

eSCM-CL

Sourcing Competence Center

Implementing the cookbook

Benefits and results

ACHMEA INSURANCE

Achmea is the Dutch subsidiary of Eureko, a private company with limited liability. Its statutory seat is in Amsterdam, The Netherlands.

Main shareholders are unlisted European companies and associations with cooperative roots.

Achmea, established in 1881, is the umbrella brand for some of the best- known names in Dutch insurance

More than 4.7 million people are insured with Achmea for health insurance

Achmea has 22,000 employees

Insurance premiums: €19,6 billion in 2009 (Eureko)

OUTSOURCING AT ACHMEA

Large parts of Achmea’s IT Infrastructure has been outsourced

Several initiatives for Application Outsourcing are executed (e.g. SAP)

Several business division have taken initatives for Business Process Outsourcing as well

Main vendors: Getronics, IBM, Accenture, ATOS Origin, KPN Telecom

Strong need to align sourcing initiatives and to bundle knowledge of sourcing projects and sourcing governance

Procurement and vendor management to work together on creating a new Sourcing Competence Center:

One reference model

Implementing Sourcing as a standard process

Using best practices

WHAT IS eSCM-CL?

Collection of 95 practices
‘best practices that are associated with successful sourcing relationships’

Structured by three dimensions
1.
17 Capability areas
2.
Sourcing life cycle
3.
Capability level

eSCM-CL OVERVIEW

QUINT’S eSCM PERSPECTIVE
Ongoing
Analysis
Initiation
Delivery
Completion
Copyright © Quint 2010

eSCM-CL PRACTICES
Phase
Total eSCM practices
Selected practices for Achmea
Ongoing
50
19
Analysis
9
9
Initiation
20
20
Delivery
11
11
Completion
5
1
Total
95
60

Ambition: Analysis and Initiation phase on level 3, others on level 2

SOURCING COMPETENCE CENTER

Using eSCM-CL as a reference model

Not aiming at certification, rather than using best-of-class practice and templates of Quint

A Down to Earth implementation

Both ‘what’ and ‘how’ and providing practical tooling
Sourcinginititiative
eSCM toolboxdevelopment
Quint bestpractices
Achmea standards & best practices
Analysis
Initiation
Definition
Development
Implementation

To control all aspects of the Sourcing Life Cycle, by:

Consulting and guiding Sourcing topics using a standardized reference process + tooling

Getting and keeping grip on all new Sourcing initiatives

Developing Strategic Vendor Management as a management-of- change tool in order to accelerate transition within Achmea
Final results:

A Cookbook with a standardized (repeatable) way of working

Supported by standard templates en tooling

All dimensions of Sourcing to be covered, including management
Control by:

All steps in the reference process are mandatory

Management by a sourcing steering committee

Support, expertise and management on processes by the Sourcing Competence Center)
OBJECTIVES AND RESULTS

Create ownershipfor each eSCM area during the project and in the next phase, while implementing the Sourcing Competence Center
A wider implementation in the “Sourcing Community” by applying the new standards at new sourcing projects and by active auditing by the Sourcing Competence Center
Other stakeholders, like “business”, will be involved in the execution and will be informed on a high level about the proces; they are not “users” of the cookbook
HOW TO ACHIEVE?
IMPLEMENTATION STARTS AT THE CORE...

By using the cookbook, eSCM and the tooling, there is strong foundation for a better Sourcing organization
Quality and maturity of “Sourcing Community” increases, by pro-actively focusing on added value of new Sourcing projects
Added value of ICT services will increase by effective Souring
HOW TO ACHIEVE?
... BUT HAS TO CREATE ADDEDVALUE FOR THE BUSINESS

<tekst>
RESULTS AT ACHMEA

PROVIDING A COOKBOOK

WHY A COOKBOOK?
But how to use it for a big party?
It does not facilitate people who don’t like cook books
A normal cookbook we all know
We all hope to be a TOP chef

FINAL RESULT
Ongoing
Analysis
Initiation
Delivery
Completion
Ongoing
Sourcing
Reference
Process
Practice
Sheets
Hulpmiddlen
Tooling
eSCM
WIKI
Sharepoint
The Cookbook v 1.0

SOURCING LIFE CYCLE BY eSCM
Ongoing
Ongoing
Analysis
Initiation
Delivery
Completion
Verkenning
En Besluitvorming
start Sourcing
initiatief
Assessment
Decision making
To start Sourcing
initiative
Selectie,
Contracting
en Transitie
Selection,
Contracting
and Transition
Uitvoering
Overeenkomst
onder regie van
Achmea
Executing
The Contract
Managed by
Achmea
Be
ë
indiging
Overeenkomst
en Exit transitie
Ending
Contract and
Exit transition
Opstellen en
onderhouden
Sourcing Strategie
Create and
maintain
Sourcing Strategy
Beheer van
Practices
, die
hulpmiddelen leveren voor
Sourcing Strategie
Maintain Practices which
Provide tooling for the
Sourcing Strategy
Strategy

eSCM-AREAS OF A SOURCING PROJECT
ANALYSIS
INITIATION
DELIVERY
COMPLETION
OPA:
Opportunity Analysis
APP:
Sourcing Approach
PLN:
Sourcing Planning
SPE: Service Provider
Evaluation
AGR:
Agreement
TFR:
Service Transition
MGT: Sourced Service
Management
CMP:
Sourcing Completion
Sourcing Initiative
Contract Management

COOKBOOK: ORGANIZATION
: Formele besluitvorming
Stuurgroep Grip
op Sourcing
Senior Steeringcommittee
Stuurgroep Grip op Sourcing: Strategie & Kaders
Senior Steering Committee: Strategy & Framework
Regie of
Stuurgroep GOS
Regie
On going Sourcingmanagement
Stuurgroep
Sourcing Initiatief
Steering committee
Sourcing project
Ongoing
Ongoing
Analysis
Analysis
Initiation
Initiation
Delivery
Delivery
Completion
Completion
Sourcing Competence Centre: Proces management, Resources & Hulpm
iddelen
Sourcing Competence Centre: Process management, Resources & Tooling
On going Sourcingmanagement

DECISION MAKING FOR EACH PHASE
eSCM
Phase:
ANALYSIS
eSCM
Phase:
INITIATION
Services
Legal
Finance
Governance
Risk
HR
For each decision and for each stream (aspect) it has been defined which documents to be produced
Feasibility
Study
Feasibility
Study
Plan van
Aanpak
Sourcing
Project plan
Sourcing
Eerste
Verkenning
First
Assessment
Selection
Advise
Selection
Advise
Contract
Sign
-
off
Contract
Sign
-
off
Quick
Scan
Quick
Scan

<tekst>

<tekst>
Tooling

WHAT’S NEXT?
Now: “CookBook 1.0”
Using the cookbook for new initiatives
“CookBook 2.0”
Enrichment by using

25
w w w . q u i n t g r o u p . nl
For more information:
a.ijmker@quintgroup.com
+31 631013822
De Oude Molen 1, 1184VW Amstelveen, The Netherlands, Tel. +31 20 -30 53 700
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