1. Strategic Sourcing Consulting

2. Develop a Culture of 6 Sigma Process Discipline with TCO focus02
Our Value Proposition
Supply Base Transformation for our Clients by adopting a best-in-class Process approach
Superior Value over the term at the right program cost
Develop a Culture of 6 Sigma Process Discipline with TCO focus
Execution and Governance of a multi-year Supply Base Transformation strategy
Competency and Leadership development in Purchasing to deliver greater impact
Our Value Proposition

3. Our Firm’s Team capability03
Lead Consultant has a 13+ year career at Caterpillar Inc.’s Asia office as a
Certified 6 Sigma Master Black (Black Belt)
Qualified Lean Black Belt & Champion
Strategic Sourcing and Cost Reduction Consultant
Consulted for Caterpillar’s Asia office and 30+ Strategic Supply partners over the last 8 years in Supply Chain total cost optimization initiatives
Industries served are Manufacturing, Automotive, Logistics & Transportation, Heavy Industrials, Energy, etc.
Industry Experts for special assignments on call, to deliver superior value and optimize client costs.
Our Firm’s Team capability

4. What we are hearing from the Market04
Total Cost of Ownership is important
Purchasing has largest potential for impacting Company costs
Split focus – Strategic versus Tactical teams
Competitive Demands
Organizations harvesting the greatest results from enterprise wide, Strategic Sourcing initiatives will achieve significant Cost Advantage over the competition, and
Will have a leaner and stronger Value Chain
Evolving new realities
Purchasing competency = Competitive advantage
Technology is a critical enabler
Supplier Collaboration & Management
A singular vision for Strategic Sourcing across the Enterprise
What we are hearing from the Market

5. Purchased Goods/Services dominate Cost structure05
Purchased Goods/Services dominate Cost structure

6. Strategic Sourcing’s bottom-line impact06
Impact of
Strategic Sourcing
initiatives
Strategic Sourcing’s bottom-line impact

7. Strategic Sourcing vs. Tactical Buying - differences07
Strategic Sourcing
(every 3 to 5 years)
Supplier Management
(every 3 months)
Tactical Buying
(every day / week)
Spend Characterization
Supply Market analysis
Strategy Development
Supply Base re-shaping
Cost Model development
Negotiation
APQP / PPAP
Review Supplier performance
Manage Supplier relationship
Resolve conflicts
Monitor Supplier marketplace
Capacity planning
Cost Reductions / Avoidances
Ppm / Cpk / COPQ
Volume forecasts
Purchase Order placement and Scheduling
External Logistics
Manage Payables and Invoice grief
Supplier Delivery performance
Performance Feedback
Voice of Business
Strategic Sourcing vs. Tactical Buying - differences

8. Strategic Sourcing is evolving08
Traditional
Purchasing
Strategic
Sourcing
Global Supply
Management
Paradigm
Transaction
Project
Enablement
Focus
Price,
management,
Compliance
Supplier rationalization,
Spend consolidation,
Cycle-time reduction,
Standardization
Balancing Total System Cost;
Maximizing shareholder
value; Enabling product
innovation
Reach
Local;
Many suppliers
Multi-regional,
Some collaboration
with related functions
Global; Highly collaborative
across the enterprise and
visible at executive levels
Technology
Spreadsheets
Auctions, e-Sourcing,
Basic optimization
Technology enablement
across all strategic sourcing
processes
People
Decentralized
Buyers
Commodity Teams,
Center-led or
centralized
Cross-functional teams
Global
Strategic Sourcing is evolving

9. Our Strategic Sourcing Roadmap09
Our Strategic Sourcing Roadmap

10. Deliverables of a Strategic Sourcing project10
Deliverables of a Strategic Sourcing project

11. Strategic Sourcing benefits - Examples11
US Postal Service
Maintenance & Repair (MRO)
1,000 suppliers down to 2 suppliers
Savings of more than $250M
Walmart
Reduced 500,000 suppliers to 50,000
$17.8B in cost savings over 5 years
95% of spend is with 16,600 suppliers
Raytheon
Had 27,000 to 45,000 suppliers (estimated)
Goal was to reduce by 20% each year
Continues to meet supplier diversity goals, even with supplier consolidation
Companies doing Strategic Sourcing have seen returns between 20x to 1000x+ on their investments over 3 to 5 years
Strategic Sourcing benefits - Examples

12. Strategic Sourcing Training

13. Training Programs - Index13
Program
Target Candidates
No. of days
6 Sigma Strategic Sourcing (6SSS Methodology) Training
Black Belts + Purchasing Professionals
3 days
APQP and PPAP Training
Purchasing + Manufacturing + Design Professionals
2 days
Total Cost of Ownership Training
Purchasing Professionals
1 day
Training Programs - Index

14. Training Delivery Suite of Options14
Delivery Options
Client Location
Instructor Led (Facilitated – 7+ pax)
E-learning (Self Taught – 1+ pax)
Printed Books / CDs (Self Taught)
Exercises + Real Examples
Coaching Support
6SSS Training
APQP / PPAP Training
TCO Training
Primary Option (7+ Belts preferred per Session of Training)
Secondary / Low Cost Options (1+ to 5+ Belts preferred per Session of Training )
Tertiary / Mandatory provisions
Training Delivery Suite of Options

15. 6 Sigma Strategic Sourcing (6SSS) Training15
Define
Understand changing Customer and Business needs
Study Category and Supply Market conditions
Tap Low Hanging fruits
Measure
Develop Supplier Evaluation Criteria
Identify List of Suppliers through RFI issuance
Develop Technical Plan and Cost Models
Analyze
Tri-analysis - Market, Supplier, Category
Issue RFPs and obtain RFQs
Select best Supplier / Supply Chain options
Improve
Negotiate Agreements & develop Supplier Performance Metrics
Develop an MGPP for Sourcing Change
Develop a Sourcing Matrix
Develop an Implementation Plan
Control
Review and Manage compliance to SP metrics
Execute the Implementation Plan
Drive Continuous Improvement to bridge SP gaps
With our Comprehensive Training Program the Candidates will be able to :
Understand the need for change based on Customer, Business, Economic, Commodity concerns etc.
Lead multi-disciplinary Teams to reshape the Supply Base base
Develop Cost Models and Metrics to manage Suppliers
Feel empowered based on facts and data to make changes based on changing face of the market
Influence the leaders of support functions needed for project completion
6 Sigma Strategic Sourcing (6SSS) Training

16. 16
Advanced Product Quality Planning, APQP, is a structured method of defining and establishing steps and expectations necessary to assure that a product satisfies the customer. The goals of APQP are two-fold :
Proactively manage technical risk as products or manufacturing processes are designed or modified
Drive collaboration between design and supply chain partners (both internal and external) at the appropriate times
Production Part Approval Process, PPAP, consists of two primary elements :
Demonstration of APQP or proof of risk mitigation of a design and / or process in support of program objectives
This demonstration of proof provides confidence that the requirements and specifications of a product prior to shipment are met
Documentation to support the demonstration of product and process conformance to requirements and specifications
This documentation details the initial quality level the supply chain has achieved
APQP / PPAP Training

17. Total Cost Optimization (TCO) Training17
Total Cost Optimization (TCO) Training

18. 18 E-Mail: info@procexcellenz.com, procexcel@gmail.com
Phone : / Mobile :
Procexcellenz is a premier provider of multi-channel Consulting and
Training Solutions for seekers of 6 Sigma, Lean, Stategic
Sourcing, Cost Management and Strategy Planning services.