1. 1 Victor Nordlund, CPSM, CPSD, C.P.M. ISM Services Group Presentation May 9, 2013 The Keys to Drive Excellent Services Purchasing

2. 2 Your presenter is Victor A. Nordlund, CPSM, CPSD, C.P.M., the Purchasing Manager for Seda North America, and is responsible for the procurement of goods and services connected with the company’s start-up facility in Racine, Wisconsin. Seda is a leading food packaging company in Europe that is noted for its innovative design and superior products. Victor worked for many top-brand companies including Rain-X, Brach’s Candy, Castrol, BP and Sterno prior to accepting his current position with Seda. He developed significant supply chain management skills through working with these varied organizations, saving them millions of dollars and significantly improving their supply chains in the process. Victor also has shared the results of his experience by teaching supply chain courses at DePaul University. He has been a member of ISM―Chicago for many years, and is a Past President of that ISM affiliate. Victor Nordlund

3. 3 Services Purchased Facilities Management Financial Services HR Services – Training… IT Helpdesk Logistics – Parcel, Freight… Maintenance Warehousing Outside Manufacturing

4. 4 Dedication Integrity Passion Pride Sincerity Capability What is Excellent Service? Providing service that is greater than expectations Going the extra mile People who have :

5. 5 Dedication, Integrity, Passion, Pride, Sincerity, Capability Excellent Service Providers Providing service that is greater than expectations Going the extra mile Companies whose people have :

6. 6 1.Evaluate spend 2.Understand internal requirements 3.Evaluate & understand Supply Market 4.Source 5.Select supplier & contract 6.Evaluate supplier performance Service Purchasing Steps

7. 7 Link to goals and objectives Cost vs. Service Level Operations vs. Purchasing Need vs. nice to have Customer expectations Competing Organizational Goals

8. 8 Importance of a well defined scope of work Technical expertise Using suppliers as a resource Communication Improving Service Level Agreements

9. 9 Keeping Competition Alive Importance of building relationships Competition keeps costs in-line Bid services the same as materials Knowing the supply market/ suppliers Who is a backup? Are there risks involved?

10. 10 SMART - KPI Ties to step 3 – Define internal requirements Refer to scope of work or SLA Refer to contract terms Strong relationship Evaluate Supplier Performance

11. 11 Strong relationships PDCA VIP – Improve Value Suppliers know best practices Benchmark to peers Involve team Improve Supplier Performance

12. 12 Conclusion The Keys to Drive Excellent Services Purchasing Develop a strong scope of work/ SLA Know the marketplace Source well SMART Measurements PDCA Importance of relationship Supplier as a resource – VIP Any questions?