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GartenStrasse 2, 6300 Zug
Mobil: +41 764 293 450
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Procurement Hub – The journey
Global procurement hubs – How to … Standard approach with proven results
Learn today
How to What to More Value through excellence
• The Buy Sell others have done
• Is the benefit a priority ?
• Understand and accept As Is
• The Journey
• The dirty dozens – Challenges to avoid….
Start with the end
Sourcing excellence Model Buy/Sell Operating Model Harmonised & Automatized
Group Procurement
Local Brewery Physical delivery of materials
Local Brewery
Local Units
Local Brewery
Local Brewery Suppliers
Legal title
Purchase Order
Payment
Strategic sourcing and frame agreement is
managed by a group function
Local Legal title, Operational execution &
Compliance to agreements.
Cons: Compliance & Transperancy GAP
HUB
Local Brewery
Local Brewery
Local Unit
Local Brewery
Local Brewery Suppliers
Physical delivery of materials
Legal title
Legal title
Purchase Order
Purchase Order
Payment
Payment
Procurement HUB becomes the “Supplier” on all
on boarded spend.
Risk, Title, Ownership, Responsibility in the HUB
PROS: E.G. Extended service, Compliance,
Transperancy, Speed, flexibility and reduced risk.
It has it been done before?
Buy Sell works across many industries
Retail
HUBS and SPOKES – Global flexibility with local expertise Central legal HUB with Branch and Regional establishment, where it make sense….
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Where to buy is not static – can change –> Regional –> Global as it mature How to buy, is fixed – (Buying Channels, HUB Price & Terms)
SSC: Ensure Operational implementation, usage and compliance Regional location assessment require several parameter to decide…
Is the benefit a priority ?
Understand and accept As Is
Understand and accept As Is
The Journey: Principles – Skills - Approach
Cross functional skills and capabilities needed
Team Skills
ERP & Technology
Finance and Treasury
Process & Master Data
Tax : Rulings & Compliance
Communication and Change
Legal Contract, Branch & SLA
Category, Contract and Supplier
Org. Design, Roles and Responsibility
Many Key Stakeholders
Work streams owners
Sponsor and decision
Functional Owners
External authority
External support
Opinion Creator
Experts (SME)
Local entity
Approach– driven by business and category maturity Project PHUB | 14th November 2012
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The Dirty Dozen – Challenges to avoid….
Summary and benefits
Key Take-aways
• Buy Sell is enforcing any existing procurement Excellence
• Be business driven, with Tax opportunities – not opposite
• Do the feasibility – outcome is a cookbook for improvement
• Its not breaking ground – most can do it and will harvest great benefit
• Process, rules and systems are known standard, keep it standard
3 Good reasons
• Significant cost savings, Compliance and Transparency
• Strong operational Integration and execution
• Strong Supplier collaboration, with one voice approach
GartenStrasse 2, 6300 Zug
Mobil: +41 764 293 450 14
Vertical SCM…. Value creation specialist
