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

Proc Leader 2© The Delos Partnership 2005 Leadership & People 1 Supply & Procurement – Integration & Leadership

Proc Leader 3© The Delos Partnership 2005 Cost & Cash Management e- Procurement Plan Contracts&Agreements Supplier Management Management How do we manage all of these responsibilities within one system? People Management Global Sourcing Procurement Responsibilities Procurement Responsibilities

Proc Leader 4© The Delos Partnership 2005 Make Responsibilities Clear Group Purchasing Responsibility Business Purchasing Responsibility with Group Support Business / Local Purchasing Responsibility IncreasingSpecification IncreasingStandardisation

Proc Leader 5© The Delos Partnership 2005 Identify the Key Success Factors Leading Edge Procurement Tools covering people, policies, processes and programmes. 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 Focus, SMART Goals and Persistence Effective Marketing – Current Plans, Progress, "New", Rewards, Performance, Feedback, Implementation Clear Feedback & Review Process Clear Feedback & Review Process Commitment & Involvement from Stakeholders Global Business Market Knowledge & benchmarkin g Showing the approach for new value – example Supplier Partnering Climate of Openness, Humour, Fun, Trust S U C E S

Proc Leader 6© The Delos Partnership 2005 Understand Behaviour Modes Analyse & Evaluate Resist & Retain Control Accept & Commitment to Help Explore & Discover Stakeholders – Customers – Team – Suppliers

Proc Leader 7© The Delos Partnership 2005 Explain 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.

Proc Leader 8© The Delos Partnership 2005 Explain the Spend Make Up Net Saving Potential of "X", Supplier Partnership Potential of "Y"

Proc Leader 9© The Delos Partnership 2005 Market Procurement

Proc Leader 10© The Delos Partnership 2005 Have 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

Proc Leader 11© The Delos Partnership 2005 Have 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

Proc Leader 12© The Delos Partnership 2005 Communicate the Policy Procurement Mission, Focus and Goals R2P process Authorization Purchase Order Authority Approved Suppliers Ethics and Breach

Proc Leader 13© The Delos Partnership 2005 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

Proc Leader 14© The Delos Partnership Customer Product & ServiceImprovementStrategy New Supplier with Value Proposition New Supplier with Value Proposition Supplier Cost & Price Improvement Supplier Cost & Price Improvement Supplier RFTQ100%OTIF Performance Supplier RFTQ100%OTIF Performance Supplier On Time New Product Performance Supplier On Time New Product Performance Supplier 3 Yr Sales Forecast & Demand Plan Supplier 3 Yr Sales Forecast & Demand Plan Supplier Lead time & Process Improvement Supplier Lead time & Process Improvement New Supplier Strategy

Proc Leader 15© The Delos Partnership 2005 New Procurement Priorities Delos Performance Measures Sales Profit and Growth Cost of Sales People Costs AssetsInventoryCreditors Perfect Customer Orders Lead Time Reduction RFTQ100%OTIF Supplier Schedule Achievement On Time New Products Total Net Value Delivered

Proc Leader 16© The Delos Partnership 2005 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 Procurement Manager VP Procurement Group Procurement Manager

Proc Leader 17© The Delos Partnership 2005 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

Proc Leader 18© The Delos Partnership 2005 People 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