Amplify Cost Savings, Influence More Spend and Enhance Your Procurement Brand with A Center-Led Sourcing Execution Center Just Do It: Nike Brett Miller Director, Sourcing Execution Denali Sourcing Services David Gonzalez Senior Manager www.sig.org/eval
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Just Do It - SIGsig.org/docs2/...It...Spend_Nike_Denali_2015_10_20.pdf · NIKE PROCUREMENT –SOURCING EXECUTION CENTER PG. 16 . HISTORY OF SEC PROGRAM PG. 17 FY13 SEC Pilot Program
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Amplify Cost Savings, Influence More
Spend and Enhance Your Procurement
Brand with A Center-Led Sourcing
Execution Center
Just Do It:
Nike
Brett MillerDirector, Sourcing Execution
Denali Sourcing Services
David Gonzalez Senior Manager
www.sig.org/eval
JUST DO IT: AMPLIFY COST SAVINGS, INFLUENCE MORE SPEND, & ENHANCE YOUR PROCUREMENT BRAND WITH A SOURCING EXECUTION CENTER
N I K E P R O C U R E M E N T & D E N A L I G R O U P S I G G L O B A L S U M M I T : O C T . 2 8 T H , 2 0 1 5
TODAY’S LINEUP PG. 2
01 – NIKE, INC. OVERVIEW
02 – PROCUREMENT: UNLOCKING VALUE
03 – GAME PLAN FOR SOURCING EXECUTION CENTER (SEC)
NIKE PROCUREMENT – SOURCING EXECUTION CENTER
NIKE, INC. OVERVIEW –
W H O W E A R E
J A N U A R Y 2 5 , 1 9 6 4
NIKE’S ROOTS IN PARTNERSHIP BEGAN WITH A
HANDSHAKE BETWEEN A
TRACK COACH AND HIS FORMER
ATHLETE.
—
TO BRING INSPIRATION AND INNOVATION TO EVERY
ATHLETE IN THE WORLD*
*IF YOU HAVE A BODY, YOU ARE AN ATHLETE.
N IK E , IN C . M IS S ION
NIKE IS A GROWTH COMPANY FUELED BY ITS CONNETION TO THE
CONSUMER AND ABILITY TO DELIVER INNOVATION AT AN UNPRECEDENTED
PACE AND SCALE
POWERFUL CATEGORY PORTFOLIO
BASKETBALL $3.7B
FOOTBALL/SOCCER $2.2B
NIKE SB $736M
WOMEN $1.3B
RUNNING $4.9B
SPORTSWEAR $6.6B
TRAINING $2.5B
GOLF $771M
PG. 7 NIKE PROCUREMENT – SOURCING EXECUTION CENTER
Material inputs such as textiles, polymers, chemicals, leathers,
packaging and components.
VALUEMAX —
Linkage to product category design and development to get
best materials at best price..
$ MILLIONS IN VALUE CREATED
GLOBAL OPERATIONS, LOCAL INTEGRATION – DRIVING THE REACH AND IMPACT OF PROCUREMENT
PG. 13 NIKE PROCUREMENT – SOURCING EXECUTION CENTER
SEC GAME PLAN –
N IK E P R OC U R E MEN T SOU R C IN G EXEC U TION C EN TER (SEC )
WHAT IS THE SEC? AN ON-DEMAND SHARED SERVICE TEAM WHO PARTNERS WITH THE BUSINESS TO INFLUENCE SPEND DECISIONS, UNLOCK
VALUE, AND ENHANCE THE PROCUREMENT BRAND IN THE NIKE COMMUNITY
DELIVER GLOBAL SCALE — - As Nike’s business grows rapidly, SEC
provides global scale to keep up with pace of business needs.
SEC GOAL STATEMENTS
OFFER FLEXIBLE SOLUTIONS — - On-demand, project based support model which
can flex up/down as needed. - ‘One-stop shop’ for multiple services
BE PROCESS EXPERTS — - Consistent, standard processes in place - Performance-based service levels with Denali
01 02 03
INTEGRATE WITH BUSINESS — - SEC partners with business stakeholders to deliver timely
support & end-to-end services.
EXPLOIT TECHNOLOGY BENEFITS — - Utilize eSourcing to drive efficiencies to sourcing projects - Be ‘Go 2 Team’ for using procurement technology systems
PIPELINE FOR TALENT — - Develop potential sourcing talent for Procurement
04 05 06
PG. 16 NIKE PROCUREMENT – SOURCING EXECUTION CENTER
HISTORY OF SEC PROGRAM PG. 17
FY13 SEC Pilot Program
FY14 Rollout North America SEC Program
FY15 Accelerate Growth and Drive Savings Impact
FY16 Expand Globally, Win in Europe and Asia
• Issue RFP to review and select a Service Provider • Service Provider for Pilot
• New Position: Director of Sourcing Execution • Service Provider for Program: Denali Sourcing Services • Expand support beyond World Headquarters to Memphis, Converse,
& Europe
• Fully developed SEC Contractor team at World Headquarters, build SEC team in Europe
• Expand support to new spend categories
• Replicate Americas model in Europe and Asia • Focus on holistic spend category as well as region
NIKE PROCUREMENT – SOURCING EXECUTION CENTER
SEC GLOBAL TEAM
NORTH AMERICA Nike + Denali
PG. 18
LATIN AMERICA Nike + Denali
EUROPE Nike + Denali ASIA
Nike + Denali
GLOBAL OPERATIONS, LOCAL INTEGRATION – DRIVING THE REACH AND IMPACT OF PROCUREMENT
NIKE PROCUREMENT – SOURCING EXECUTION CENTER
SEC PROJECT CLASSIFICATIONS PG. 19
TIER 1
COMPLEX
TIER 2
STANDARD
TIER 3
QUICK BID
TIER 4
NO BID
• Large spend • Medium to high risk • Extensive contract work