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Transcript of WOW
This will need discipline & courage.......bring long term value
SIPOC - Mapped our Customers, Outputs & Process
Where we and the business see DM adding value
We confirmed our findings using data
Where do we sit on this chart?
What are we working on?
We need to move up!!!!!!
Strategic Sourcing – 7SS Risk Mitigation strategies Lean vs Ensuring Supply
To understand value from our customers perspective
Included in lots of topics
* Responsible - 43%
* Consulted - 55%
* Informed - 2%
Activities we conduct
45% require Procurement Talent
55% are Transactional
Learning - Customers want us to be involved to add value - an expectation by our customers
Learning - Not enough time to work on Entrepreneurship, creativity and strategy
Driving Competitive Advantage
Champions of Improvement
Engaged with business
An engaged team
*7SS by Material
*Autonomous team driving change
*Long Term Strategies
*Seeing opportunity Pro-actively
*Risk activities that reduce Fire fighting
*Two Way Factory relationships
Little time to focus on Strategic Activity
Too much reactivity
No time to dedicate to becoming a category expert
More tasks added, no tasks taken off
Too much demand
Lack of response time for Global and / Zone requests
Lack of Recognition
More time communicating than doing
Conflicting priorities between business and PE
Supply Issues time consuming
Time to input into iNexus/SAP/Sedex
Too many spreadsheets
Bad folder structure on the X drive
Anything to do with Suppliers becomes a Procurement dumping ground
Factories not always accountable
Procurement seen as a fix all
Why are we spending soooo much time on firefighting?
Too many e-mails
Too many ph calls
Too many meeting with no agenda / unrealistic timelines
Time Spent on PE vs PDG
Too many policies not well communicated
7 BPs onerous and compliance target too high for increased workload to deliver BPs effectively
Lack of resources
No Admin Assistant
Lack of resources to add value (PAG)
Lack of team resources
Annual leave – forced
Need to deliver results at any cost
4 strategic buyers - over 500 hours tracked
Specific actions will start our journey of reducing fire fighting
Lets work smarter .... not harder
Work smarter NOT harder!
How our time would be best spent to add the most value
Reduce Factory/BU Queries
Say NO to non relevant tasks
Reduce category management
Increase emphasis on 7SSP
One Procurement rep per meeting
Determine Technologists role
Reduce info for PLT/Audits
Standardised approach to info storage
Prioritise with PLT support (stick to OMP)
Assign Admin/Tactical duties to analysts
Define roles/scope with business
Pragmatic application of 7BPs and push downs
Increase Personal/Team Development
Ownership of PDGs
We embarked on a journey of investigating our way of working as a Strategic Buyer in Direct Materials
LEAN Thinking - The Nestle Way
33 Regular Customers
Above the Market
= Differing definitions of value!!!!!
Little opportunity to remove THE 33% OF NV
E.g - VAM,VAP,iNexus
2012 OMP ----> 6 Projects moved to 2013 OMP
- FPPV & Dynamic Forecasting Role
- Supplier Relationship Management
- Define Cost Improvements Measure
- Snack Bars Frontload
- COR Implementation
- NPDI Procurement Guidelines
2012 Was great!
But we could have done more if we worked smarter? Better WOW!
Improving our WOW will allow more
TCO & Cost Savings
By eliminating, combining, reducing or simplifying tasks we want to rebalance the workload
Factory & BU Queries
Info for PLT
Qualitative Measures Fortnightly
Quantitative Measures Weekly
"provide more info on what industry is doing"
"work with factory to develop a combined Master Plan"
"share more info on suppliers and market trends"