Future Proof Your Procurement Organization Tracy Stephenson Former JC Penney CPO Infosys Rajiv Gupta Practice Engagement Manager www.sig.org/eval
Future Proof Your Procurement
Organization
Tracy Stephenson
Former JC Penney CPO
Infosys
Rajiv GuptaPractice Engagement Manager
www.sig.org/eval
Tracy Stevenson & Rajiv Gupta
2
Why Future Proof Procurement
5 Steps to Future Proof
Quick Steps You Can Do Now
Q&A
KOMPLET
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Procurement
Seen As A
Strategic Partner
By Industry
Aerospace
80%
Pharma
60%
Auto/Other
70%
Publlic
Sector
50%
Healthcare
20%
Hospitality
10%
Retail
30%
Call to Action
Procurement and Supply Chain should be a strategic partner in a company across all industries
Results In
• Incremental 10-20%+ Value• Risk Mitigation• A Sustainable Competitive Advantage• Innovation• Increased Talent• 10% or Less of Companies are
considered World Class
Why Future Proof?
Source Data: Infosys
KOMPLET
1 2 3 4 5
Strategy Marketing Talent Governance
Best In Class Process, Technology
and Data
• World Class Roadmap• Refine with External
Best Practices• ROI• Innovation and Risk• Timelines/Milestones
5 Pillars to Future Proof Procurement
To Huge Success!
• Aign Procurement +Company Goals
• Executive Alignment• Customer Alignment• Metrics /Scorecards• Communicate Success• Leadership Council
• Talent Development• ROI/Benchmarking• Training• Organizational Structure• Rotate Talent• Performance Process • Change management
• Centralize Procurement
• Board Approved Policy
• Structured Approach to Risk and Continous Risk Monitoring
• Integrate P2P Modules• Visibiility to Spend, Value
Add Tracking, Contracts• Best in Class Processes,
Robotics and automation,• Strategic Category
Management and Market Intelligence
Keep Simple and Take People With You
KOMPLET
World Class Procurement
0.50
1.00
1.50
2.00
2.50
3.00
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
Inhibiting Performing Enabling Optimizing Best In Class World Class
N/A Feb-13 Nov-13 Feb-14 Oct-14
Procurement Maturity
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Value Add
• Acheived $70MM of
$100MM Goal YTD
Compliance
• 10% Spend w/o A PO or a
Contract (Maverick)
• 5% Bid Waivers YTD
• 90% Contracts in System
• 1 Expired
• 10 Expiring 30 days
• 20 Expiring 60 days
• 50 Expiring 90 days
Operational
Communicate Success Metrics
$70M 10%
Align on Metrics with Executive Team Define 3 Metrics by Customer
• SRM and Supplier Performance
• Continuous Risk Monitoring:
• Brand/Global/Social/Reputational/
Geographic/QA
• Suppiier Re-Qualification (Annual)
• ID Sole Source/Secondary Supply
Options
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Training
• Sourcing Boot Camp• 7 Step Process/E-sourcing• Contracts• Customer Engagement• Category Management• SRM• Ongoing...
Succession Planning
• 6 Box Reviews• Bench Planning for all levels• Rotate Talent • Hi Potentials
• Ability • Engagement• Aspiration• Learing Agility
Review Process
• Skill Matrix• Defines skills required at all
levels Specialist to Director• Self Assessment• Personal Development Plan• Build A Team
• Reward /Address Top/Bottom• Internal/External Talent
• In-Source vs. Out-Source (based on core competencies)
• Performance Management
TALENT
The Power of Developing World Class Sourcing Talent
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• Executive/Board Approved• Communicate To Employees• Employee signature • Address non compliance
Centralize
• Present Fact Based Data to CF Leaders• Why it makes sense to centralize:
• Expert Resources to support BU’s• Checks and balances• Improved Savings/Contract terms• Risk to BU’s to sign own contracts• Proper expertise in right area to
safeguard the company
• Synergies: Learning, Tools, Processes
Ongoing Risk
2 Key Elements:• All negotiations triple
bid unless bid waiver by CPO/BU/CFO/CEO
• All contracts signed by procurement
Governance
Put Strong Base and Visibility In Place
Procurement Policy
• Structured Approach to Risk• Approval by CPO for
anything with Brand, Global Component
• Social Compliance• Geographic• QA• Legal
KOMPLET
15PROCESS, TECHNOLOGY, AND DATA
Procurement InsightsAdvanced Spend Classification & Analytics
tool to identify savings opportunities
Procurement CloudProcure-to-Pay “Enablement”
Platform with a B2C Experience
Infrastructure & Hosting
Expert Consulting Services
Implementation Services
Infosys IP/Products
Partner Products
Ecosystem
Multitenant
Cloud based
SMART Tech.
Pay as per use
• Product Discovery
• Guided Buying
• Purchase Request
• Approvals
• Action Center
• Order Management
• Catalog Management
• Supplier Portal
• Spend Classification
• Spend Analysis
• Collaboration
One SearchExternal
MarketplaceGuided Buying
Channels
KOMPLET
16Proven Managed Services in Sourcing and Procurement
• 70+ Global clients in
Managed Sourcing &
Procurement
Services
• 14 Global Delivery
Centers
• 10-15 X ROI in
Managed Sourcing &
Procurement
Services
• 150 + Bn Spend
Under Management
KOMPLET
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Now2015
Our success story
By Putting 5 Key Pillars in Place Built World Class Results:• $180MM Value Add• $200MM+ Risk
Mitigation• Built People Capability• Innovative Negotiations
Evaluation How-to:
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Session #14
Future Proof Your Procurement Organization
Rajiv Gupta
Infosys510-284-9354
www.sig.org/eval