Trends in Procurement Sven De Rop

Head of Procurement Lidl Belgium & Lux GmbH

Vlerick Sales Conference 03-06-2015

2

Trends in Procurement

1.War for talent

2.Supplier Relationship Management

3.Cost Reduction

4.Procurement will devolve

5.CSR

6.Risk Management

7.Technology

Headlines

Vlerick Sales Conference 2015 – Sven De Rop

3

a • Multi-disciplinary teams

Trends in Procurement

Vlerick Sales Conference 2015 – Sven De Rop

• Increasing difficulty

of legislation

•Claim prevention

•Risk Mangement

•Data Management

•Data management

•Prediction of supply

•Depth

understanding of

business needs

Technical

Expertise

Economic

background

Legal

awareness Finance

1. War for talent

4

c

Trends in Procurement

Vlerick Sales Conference 2015 – Sven De Rop

d

• Talent Management: focus on talent b

• Multi profile team: use strengths of people

• Social interaction : managing internal and external stakeholders

1. War for talent

5

Trends in Procurement

Vlerick Sales Conference 2015 – Sven De Rop

a. Managing

expectations

• SLA

• KPI

Old school vendors • Shake out of existing vendors

Strategic

Focus

• Where is the road going through?

• Chinese wall needed

Collaboration

• Co-development

2. Supplier Relationship Management

6

Trends in Procurement

Vlerick Sales Conference 2015 – Sven De Rop

Low

High Low

High

Complexity of supply market

Imp

ort

ance

of p

urc

hasin

g

Materials Management

Sourcing Management

Purchasing Management

Supply Management

b. • Kraljic Matrix (Business Harvard Review 1981)

2. Supplier Relationship Management

High

7

Strategic implications of purchasing portfolio mgt

Trends in Procurement

Vlerick Sales Conference 2015 – Sven De Rop

High

Low

High

Supplier strength

Co

mp

an

y S

tre

ng

th

Opportunist

Balance

Opportunist

Opportunist

Balance

Balance

Diversify

Diversify

Diversify

Low

2. Supplier Relationship Management

8

1

2

3

• Cost reduction with focus on added value

• Operational issue – Strategic Focus

• Supply chain management: Optimisation

Trends in Procurement

Vlerick Sales Conference 2015 – Sven De Rop

3. Cost Reduction

9

1

2

3

• Direct line to the Board and strategic in budget planning

• Strategy development

• Recognition of central player in every step of business decision

Trends in Procurement

Vlerick Sales Conference 2015 – Sven De Rop

4. Procurement will devolve

10

1

2

3

• Social responsibility lobbyists – sustainability index

• Increasing number of different certifications (ISO, ..)

• Shareholder Management

• Sustainability transition in the supply chain

• Suppliers to adapt

Trends in Procurement

Vlerick Sales Conference 2015 – Sven De Rop

5. Corporate Social Responsability

11

1

2

• Data Pool Management

• Quantify risk

Trends in Procurement

Vlerick Sales Conference 2015 – Sven De Rop

• Independent certification: Operational issue – Strategic Focus 3

• Collaboration with finance: internal external risk

6. Risk Management

4

12

1

2

• Data Management

• Move away from solution based approach => predictive

• Forecast planning Capex

• Operational issue – Strategic Focus

Trends in Procurement

Vlerick Sales Conference 2015 – Sven De Rop

7. Technology