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Future Proof Your Procurement
Organization
Tracy Stephenson
Former JC Penney CPO
Infosys
Rajiv GuptaPractice Engagement Manager
www.sig.org/eval
Tracy Stevenson & Rajiv Gupta
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Why Future Proof Procurement
5 Steps to Future Proof
Quick Steps You Can Do Now
Q&A
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Procurement
Seen As A
Strategic Partner
By Industry
Aerospace
80%
Pharma
60%
Auto/Other
70%
Publlic
Sector
50%
Healthcare
20%
Hospitality
10%
Retail
30%
Call to Action
Procurement and Supply Chain should be a strategic partner in a company across all industries
Results In
• Incremental 10-20%+ Value• Risk Mitigation• A Sustainable Competitive Advantage• Innovation• Increased Talent• 10% or Less of Companies are
considered World Class
Why Future Proof?
Source Data: Infosys
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Strategy Marketing Talent Governance
Best In Class Process, Technology
and Data
• World Class Roadmap• Refine with External
Best Practices• ROI• Innovation and Risk• Timelines/Milestones
5 Pillars to Future Proof Procurement
To Huge Success!
• Aign Procurement +Company Goals
• Executive Alignment• Customer Alignment• Metrics /Scorecards• Communicate Success• Leadership Council
• Talent Development• ROI/Benchmarking• Training• Organizational Structure• Rotate Talent• Performance Process • Change management
• Centralize Procurement
• Board Approved Policy
• Structured Approach to Risk and Continous Risk Monitoring
• Integrate P2P Modules• Visibiility to Spend, Value
Add Tracking, Contracts• Best in Class Processes,
Robotics and automation,• Strategic Category
Management and Market Intelligence
Keep Simple and Take People With You
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WORLD CLASS
STRATEGY
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World Class Procurement
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Inhibiting Performing Enabling Optimizing Best In Class World Class
N/A Feb-13 Nov-13 Feb-14 Oct-14
Procurement Maturity
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MARKETINGElevates Value
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Value Add
• Acheived $70MM of
$100MM Goal YTD
Compliance
• 10% Spend w/o A PO or a
Contract (Maverick)
• 5% Bid Waivers YTD
• 90% Contracts in System
• 1 Expired
• 10 Expiring 30 days
• 20 Expiring 60 days
• 50 Expiring 90 days
Operational
Communicate Success Metrics
$70M 10%
Align on Metrics with Executive Team Define 3 Metrics by Customer
• SRM and Supplier Performance
• Continuous Risk Monitoring:
• Brand/Global/Social/Reputational/
Geographic/QA
• Suppiier Re-Qualification (Annual)
• ID Sole Source/Secondary Supply
Options
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TALENTTop Talent, Top Results
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Training
• Sourcing Boot Camp• 7 Step Process/E-sourcing• Contracts• Customer Engagement• Category Management• SRM• Ongoing...
Succession Planning
• 6 Box Reviews• Bench Planning for all levels• Rotate Talent • Hi Potentials
• Ability • Engagement• Aspiration• Learing Agility
Review Process
• Skill Matrix• Defines skills required at all
levels Specialist to Director• Self Assessment• Personal Development Plan• Build A Team
• Reward /Address Top/Bottom• Internal/External Talent
• In-Source vs. Out-Source (based on core competencies)
• Performance Management
TALENT
The Power of Developing World Class Sourcing Talent
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GovernanceKey to Ongoing Success
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• Executive/Board Approved• Communicate To Employees• Employee signature • Address non compliance
Centralize
• Present Fact Based Data to CF Leaders• Why it makes sense to centralize:
• Expert Resources to support BU’s• Checks and balances• Improved Savings/Contract terms• Risk to BU’s to sign own contracts• Proper expertise in right area to
safeguard the company
• Synergies: Learning, Tools, Processes
Ongoing Risk
2 Key Elements:• All negotiations triple
bid unless bid waiver by CPO/BU/CFO/CEO
• All contracts signed by procurement
Governance
Put Strong Base and Visibility In Place
Procurement Policy
• Structured Approach to Risk• Approval by CPO for
anything with Brand, Global Component
• Social Compliance• Geographic• QA• Legal
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Process, Technology and DataThe Right Decisions
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15PROCESS, TECHNOLOGY, AND DATA
Procurement InsightsAdvanced Spend Classification & Analytics
tool to identify savings opportunities
Procurement CloudProcure-to-Pay “Enablement”
Platform with a B2C Experience
Infrastructure & Hosting
Expert Consulting Services
Implementation Services
Infosys IP/Products
Partner Products
Ecosystem
Multitenant
Cloud based
SMART Tech.
Pay as per use
• Product Discovery
• Guided Buying
• Purchase Request
• Approvals
• Action Center
• Order Management
• Catalog Management
• Supplier Portal
• Spend Classification
• Spend Analysis
• Collaboration
One SearchExternal
MarketplaceGuided Buying
Channels
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16Proven Managed Services in Sourcing and Procurement
• 70+ Global clients in
Managed Sourcing &
Procurement
Services
• 14 Global Delivery
Centers
• 10-15 X ROI in
Managed Sourcing &
Procurement
Services
• 150 + Bn Spend
Under Management
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Now2015
Our success story
By Putting 5 Key Pillars in Place Built World Class Results:• $180MM Value Add• $200MM+ Risk
Mitigation• Built People Capability• Innovative Negotiations
Evaluation How-to:
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Session #14
Future Proof Your Procurement Organization
Rajiv Gupta
Infosys510-284-9354
www.sig.org/eval
