Proc Leader 1© The Delos Partnership 2005 Procurement Masterclass Leadership and people.

Proc Leader 1 © The Delos Partnership 2005

Procurement MasterclassProcurement Masterclass

Leadership and people


Leadership & People Leadership & People

1 Supply & Procurement – Integration & Leadership


Cost & CashCost & Cash

ManagementManagement

e-e-ProcurementProcurement

PlanPlan ContractsContracts

& &

AgreementsAgreements

SupplierSupplier

ManagementManagement

How do we manage all How do we manage all

of these responsibilities of these responsibilities

within one system? within one system?

People People ManagementManagement

Global Global SourcingSourcing

Procurement ResponsibilitiesProcurement Responsibilities


Make Responsibilities ClearMake Responsibilities Clear

Group Purchasing

Responsibility

Business Purchasing

Responsibility with Group Support

Business / Local Purchasing

Responsibility

Incr

ea

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as

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Sp

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Incr

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Sta

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Identify the Key Success FactorsIdentify the Key Success Factors

Leading Edge Procurement

Tools covering people, policies,

processes and

programmes.

Leading Edge Procurement

Tools covering people, policies,

processes and

programmes.

Unambiguous Procurement

Vision, Strategies,

Priorities and Sense of Direction

Unambiguous Procurement

Vision, Strategies,

Priorities and Sense of Direction

Teamwork – Change Agents,

Questioning, Listening,

Challenging, Supporting

Teamwork – Change Agents,

Questioning, Listening,

Challenging, Supporting

Information Management –

Quality, Access,

Visibility, Sharing

Information Management –

Quality, Access,

Visibility, Sharing

Focus, SMART

Goals and Persistence

Focus, SMART

Goals and Persistence

Effective Marketing –

Current Plans, Progress, "New",

Rewards, Performance,

Feedback, Implementation

Effective Marketing –

Current Plans, Progress, "New",

Rewards, Performance,

Feedback, Implementation

Clear Feedback &

ReviewProcess

Clear Feedback &

ReviewProcess

Commitment & Involvement

from Stakeholders

Commitment & Involvement

from Stakeholders

Global Business

Market Knowledge & benchmarkin

g

Global Business

Market Knowledge & benchmarkin

g

Showing the approach for new value –

example Supplier

Partnering

Showing the approach for new value –

example Supplier

Partnering

Climate of Openness, Humour,

Fun, Trust

Climate of Openness, Humour,

Fun, Trust

S

U

C

C

E

S

S


Understand Behaviour Modes Understand Behaviour Modes

Analyse&

Evaluate

Resist& Retain Control

Accept&

Commitment to Help

Explore &

Discover

Stakeholders – Customers – Team – Suppliers


Explain what procurement doesExplain what procurement does

• Responsible for purchasing goods and services• Manages co-operative partnerships with suppliers

to deliver customer requirements• Provides Major opportunity for enhanced

profitability [straight to bottom-line]• Manages execution in appropriate way [purchase

orders, credit cards,kanbans]• Purchasing’s objective is to achieve best total

value for customers.


Explain the Spend Make UpExplain the Spend Make Up

People

Raw Materials

Packaging

Capital Equipment

Engineering

Technical

Health and Safety

Outsourcing

Energy & Utilities

Logistics

Goods and Services

Net Saving Potential of "X", Supplier Partnership Potential of "Y"

Paul Warrick

Links to the Delos Spend Map in excel


Market Procurement Market Procurement


Have Solid FoundationsHave Solid Foundations

Prior to Supplier engagement "buyers" should be aware of:-

• The Company Organisation And Vision

• Key Internal Customers And Their Main Spends, Budgets and Needs

• The Company Procurement Policy & Responsibilities

• The Company Procurement Terms And Conditions


Have Solid FoundationsHave Solid Foundations

Prior to Supplier engagement "buyers" should be aware of:

• The Company Procurement Process maps

• Internal Customer Requisition & Spend Authority Policy

• Company Confidentiality Disclosure Agreement, Terms and Conditions AND Agreement Types

• Procurement Key Performance Measures And Indicators

• Supplier Key Performance Measures And Indicators


Communicate the PolicyCommunicate the Policy

• Procurement Mission, Focus and Goals

• R2P process

• Authorization

• Purchase Order Authority

• Approved Suppliers

• Ethics and Breach


Set Suppliers Up Properly Set Suppliers Up Properly

All suppliers over a certain expenditure need to be properly set up using a supplier pack containing a procurement request for information (R.F.I.)

The set up pack contains– Supplier nomination form– Supplier appraisal form (completed r.F.I.)– Procurement terms & conditions– Confidentiality disclosure agreement (c.D.A.)– Samples of the company requisition and purchase order– Company payment method– Supplier measures and metrics – Company and supplier quality assurance policy– A complete risk analysis for strategic-critical items


2.1

CustomerCustomerProduct & Product &

ServiceServiceImprovement Improvement

StrategyStrategy

New Supplierwith Value Proposition

New Supplierwith Value Proposition

Supplier Cost & Price

Improvement

Supplier Cost & Price

Improvement

Supplier RFTQ100%OTIF

Performance

Supplier RFTQ100%OTIF

Performance

SupplierOn Time

New ProductPerformance

SupplierOn Time

New ProductPerformance

Supplier3 Yr Sales Forecast

& Demand Plan

Supplier3 Yr Sales Forecast

& Demand Plan

SupplierLead time &

Process Improvement

SupplierLead time &

Process Improvement

New Supplier Strategy New Supplier Strategy


New Procurement Priorities New Procurement Priorities

Delos

Performance

Measures

Sales Profit and

Growth

Cost of Sales

People

CostsAssets Inventory

Creditors

Perfect Customer Orders Lead Time Reduction RFTQ100%OTIF Supplier Schedule Achievement On Time New Products Total Net Value Delivered


Procurement Career Roles Procurement Career Roles There are typically five procurement roles

Each role should have a clear job definition

Each role has five performance stages

P2P

MRPE

Procurement Assistant

Buyer

Category Manager

Senior Buyer

ProcurementManager

VP Procurement

Group Procurement

Manager


Individual Development Individual Development Each procurement career role passes through 5 stages Role owners increase effectiveness over 5 stages Every stage/role has a clear definition of what

needs to be achieved in order to progress Both experience & skills are assessed

Entry

Development

Career

Advanced

Expert


People ContentsPeople Contents

• Roles and Responsibilities

• Job Descriptions and Appraisal System

• Goals – Focus and SMART goals

• Career Development – Broadbanding

• Education & Training – External CIPS / ISM etc and Inter-Company

Proc Leader 1© The Delos Partnership 2005 Procurement Masterclass Leadership and people.

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Transcript of Proc Leader 1© The Delos Partnership 2005 Procurement Masterclass Leadership and people.