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In the meantime, please take a look at the upcoming SIG networking events listed on the right side of your screen

and plan to join us if you are in one of these cities this fall.

NETWORKING EVENTS

GLOBAL SUMMITSMar 10-12 2015 – Amelia Island

SYMPOSIUMS

March 25 – Minneapolis, MN

REGIONAL ROUNDTABLES

Feb 4 – Seattle, WA

For more information and to register for all SIG events:

www.sig.org

Become a SIG Champion and earn points in the process by…

•Attending an event

•Dialing into a webinar•Speaking at a Summit

•Submitting content to our blog or SRC

•Referring a new member•And more

For more information and to register for all SIG events:

www.sig.org

RECENT POSTINGS

The SIG Career Network is

bursting with opportunities.

New jobs are posted daily by some of the best known global

companies in the world for those seeking careers in sourcing,

outsourcing, procurement and related functions.

For more information go to: www.sig/career-center.org

NEW to the Career Network!

• Honda North America – posted Dec. 10

• Category Leader

• Agrium, Inc. – posted Dec. 8

• Category Manager, IT and Telecom

• Pacific Electric & Gas – posted Dec. 3

• Expert Category Lead

• Zions Bancorp. – posted Dec. 2:

• Information Technology Analyst

• Senior Information Technology Analyst

• GAP Inc. – posted Dec. 1:

• Sourcing Manager – Outsourcing

• Sourcing Manager – GAPTech Software

• Warner Bros. – posted Nov. 25:

• Sourcing Manager - Marketing

• LogicSource – posted Nov 19:

• Vice President, Sourcing – Facilities

• Vice President, Sourcing – Technology

• Vice President, Sourcing – Logistics

• Vice President, Sourcing – Travel

bit.ly/SIGLinkedIn @SIGinsights bit.ly/SIGfacebookbit.ly/SIGYouTube

Join the discussion in SIG’s Peer2Peer Resource program too!

Stay connected with other SIG members through various social media channels

SOCIAL MEDIA

bit.ly/SIGBlog

New Topic Each Week2:00 pm Eastern

(11:00 am Pacific)

Upcoming Free SIG Webinars:

January 15, 2015A Case Study:How Effective Risk Management Drives Global Supply Chain OptimizationPresented by Hiperos

January 22, 2015Solution Deep DivePresented by Zycus

January 27, 2015Thought LeadershipPresented by DTZ Register at www.sig.org

For more information and to register for all SIG events:

www.sig.org

Upcoming Town Hall Teleconference:

January 7th

Supplier Management/Governance

Presented by:

John Fafian

Director – Head of Strategy & Sourcing

PricewaterhouseCoopers LLP

SIG Town Hall Teleconferences

bring a small group of buy-side ONLY attendees together for a facilitated

discussion on top-of-mind issues in an open-mic, private conversation. Town Hall Teleconferences are NOT recorded.

Calendar of Town Hall

Teleconferences

Taking place at 1:00 pm Eastern on

the following dates:

January 7 July 8

February 11 August 12

April 8 September 9

May 13 October 14

June 10 November 11

For more information and to register for all SIG events:

www.sig.org

SIG Symposiums and Regional Roundtables provide education and local networking for members and invited non-member corporate users

Symposiums 2015:

Minneapolis – March 25

Toronto, Canada – May 20Columbus – Sep 16

New York– Oct 15

San Francisco Bay Area – Nov 13

Regional Roundtables 2015:

Seattle – Feb 4

Hartford – Feb 25Sydney AU – April 15

Chicago – April 29

Houston – May 6

For more information and to register for all SIG events:

www.sig.org

A SIG Global Summit is…

• Non-commercialized

• Almost 70% buy-side

• Global brands

• 3 days of networking

• Executive Roundtables

• Multiple keynote sessions

• Nearly 50 breakout sessions

69% at director level or above, of which 43% are VP/C-level

www.sig.org/summits.php

Capital Program Management:Objective Prioritization and Strategic Sourcing Alignment

SIG Presentation

December 11, 2014

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Today’s presenters

Ron Bye is a Vice President and the Capital

Planning Product Lead at JLL. Ron’s experience

includes virtually every facet of the commercial

building industry with over 40 years experience.

Currently, Ron oversees capital project planning

services to vet scope, budget, and perform

business case analysis for Clients across the US.

Mr. Bye and his team have developed an

algorithmic approach to project prioritization.

Samantha Mehal is a Vice President and Strategic

Sourcing Manager, where she leads the supply

chain and procurement group for Project and

Development Services within JLL. She has over 15

years experience and expertise in developing and

implementing a sustainable preferred supplier

programs that deliver proven savings (250M+ in

2014) and other efficiencies.

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• Seldom

• Occasionally (25%)

• Often (50%)

• Regularly (75%)

• Almost always

How often do your

projects encounter

sourcing issues,

require redesign,

or spec changes

to meet budget

once you go out to bid?

Polling Question??

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Capital projects canceled, placed

on hold, or deferred in one year

Budget variance discovered —

submitted vs. verified by CPM

What’s the risk? A case for Capital Program Management.

30% >25%

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More than half of executives in a

recent study expect future capital

projects to exceed budgets

20 percent anticipating

overruns in the double digits

What’s the risk? A case for Capital Program Management.

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Decisions should be

driven by credible,

objective data

15

Capital Budget and Planning

Danger: Shrinking capital

budgets mean greater

importance for prioritization

With less money, you need to plan more

16

Capital Planning

Process

Technology

solution

Prioritization

algorithm

Specialized

skillsets

17

How it works

Expose reality of project

scope and budgets

through

detailed review of

projects

Identify

alternate

approaches to

solve facility needs

Identify

unjustified

projects

Apply

market knowledge

to propose

solutions

Deep dive analyses

to identify full

project scope

Examine

maintenance

needs vs.

replacement costs

Identify obsolete

facilities based on

operational costs,

condition and

design/usage

18

The end result

• Well-planned and justified projects

– Easier to construct/manage

– Reduced PjM requirements

– Avoid budget issues

– Shorten project duration

• Integration increases efficiency for all

• Facilities get what they need, when they

need it

Proper planning prevents poor performance

19

Summing it up…

Cost

Risk

Surprise

Inefficiency

Unspent cap budget

Pet projects

Better decisions

Predictable plan

Strategic sourcing

Priorities addressed first

CRE value to C-suite

Optimized timing of spend

20

Capital Projects

Why Strategic Sourcing?

• Complexity

• Tight budgets

• Material and labor availability

• Supply chain fluctuation

• Regional trends

• Critical supplier relationships

On average 90% of capital budgets are outsourced

21

Transactional

Price dominance

Constant negotiation

Short term thinking

Isolated

One time decision

Win-lose result

What sourcing is: What sourcing is not:

Trending

Strategic

Total cost of ownership

Shared resources

Long term vision

Collaborative

Continuous process

Win-win partnerships

22

Integration

Expanding procurement’s influence

• Portfolio Planning

• Business Unit Collaboration

• Design

• Project Execution

• Supplier Relationship Management

• Facility Management

• Analytics

True integration between capital project management team and sourcing team

23

Data and sourcing

Data is power

• Budget

• Actual

• Historical

24

• Savings

• Mitigation of risk

• The best quality and supplier

performance

• All of the above

What is the most

important benefit to you

realized from sourcing

strategically?

Polling Question??

25

A different point of view

• Warranties

• Priority in production

• Sustainability

• Maintenance

• Demand

Scope of SS extends beyond transaction. We should be considering the Total Cost of Ownership

• Innovation

• Technology

• Operations

• Delivery

• Performance

Examples of TCO, price

plus:

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Objectives of Strategic Sourcing

Reduce cost while

maintaining or

improving quality

Technology

solution

Specialized

skillsets

Leverage entire

portfolio

Manage Risk

Identify improvement

opportunities

Deploy category

management

Optimize supply

base

Drive innovation Develop supplier

metrics that align with

corporate strategy

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WHY focus on sourcing?• Gain confidence in decision making through

innovative strategies

• Align purchasing decisions with academic analysis to achieve best total cost of ownership

• Develop healthy and sustainable supplier partnerships

• Enhance control and transparency to gain superior terms for capital purchases

• Use benchmark data and other information to better plan for future capital budgets

Companies that excel in

delivering capital projects can

be financially rewarded

Connecting the dots with capital PM team and sourcing

Success requires the team to focus on the management and execution of the

sourcing function

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The end result

• Key factor in increasing the odds that

projects exceed quality expectations is

sourcing.

• Profitability in capital projects is directly

dependent on how a firm sources for

those projects.

• Firms that employ strategic sourcing are

15-25% more profitable over those firms

NOT sourcing on capital projects.

Companies that excel in

delivering capital projects AND

sourcing will be financially

rewarded

2,500project managers1.1 billion

sq ft facilities

under management

Serving the world’s

LEADING

COMPANIES

JLL’s Corporate Solutions business today

26Kemployees globally

4,000transaction specialists

415 researchers

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550consulting and

workplace strategists1,300LEED accredited

professionals

84,800leases managed

$30 billionspend controlled

for JLL clients

billionin revenue

$1.3

420+client accounts

COPYRIGHT © JONES LANG LASALLE IP, INC. 2014

Thank you

Month 00, 201430