Alengis Strategic Consulting
Executive Summary Member of
19.11.2014
Thomas Dieringer| Š Copyright
YOUR NEEDS, CHALLENGES, AND OPPORTUNITIES.
19.11.2014
Thomas Dieringer| © Copyright
Requirements, challenges and opportunities in Procurement‌
19.11.2014
Thomas Dieringer| Š Copyright
Where should Procurement be in the future? As the Procurement professional dons multiple hats, his role and impact will become more strategic.
2025
Supply Chain Innovator
Supplier Coach
Purchasing is responsible for Legal Expert
various duties & responsibilities in the company and it will
Risk Advisor
Business Partner
therefore take a more strategic role than today. Internal Consultant
2013
Relationship Broker
Intelligence Agent
Cost Saving Enabler
Financial Expert
Source: FUTUREBUY: The Future of Procurement 25 in 25: Delivering procurement value in a complex world, KPMG
19.11.2014
Thomas Dieringer| Š Copyright
What strategic role does Procurement have today in your company? Optimization Integration Control Stage Informal Stage The Control Stage – Global Leverage • You have streamlined the The Informal Stage basic procurement • Your focus is on purchase practices transactions • You are reducing your • Your primary measures are supply base purchasing budget and price • You leverage common variance suppliers for basic • Procurement is still a commodities backroom function • Most of your service • The primary role is buyer management is based • There are limited systems locally • Distributed organization • You believe the primary throughout the business skill of purchasing is negotiating
Integration – Commodity Management • You have cross functional commodity teams • You have designed global coordination of your procurement function • You view procurement as a strategic function • You use a wide variety of sourcing levers • Your procurement function is systemsenabled
Optimization – World Class • You have established tight linkages with R&D and service departments • You have established active supplier management programs to drive continued improvement • You use highly automated systems • You employ continuous supply market research and testing • You routinely use the best cost sources of supply
19.11.2014
Thomas Dieringer| © Copyright
Wo liegen die Hauptaktivitäten heute? What you should do: Strengthen the influence of Procurement by increasing the share of active managed spend Improve the Procurement service by integration innovation from supplier markets Ensure transparence and impact on the supply chain to establish value oriented purchasing What you should check / ensure: Reduction of avoidable Procurement costs Optimized Cash flow (Working Capital) Expand procurement´s scope/influence
31%
Provide innovation and product/service support
31%
Deepen influence on complex indirect spend categories to drive value beyond sourcing
24%
Reduce and avoid purchased costs
24%
Free up cash (e.g.,through working capital improvements
25%
Critical
High
45%
76%
38%
69%
34% 28% 25%
58% 52% 50%
Change in Priority from 2013 Source: Key Issues Study, The Hackett Group 2014
19.11.2014
Thomas Dieringer| © Copyright
Efficiency and effectiveness are crucial faced with such challenges. Challenges for Procurement: Increase of turnover and spend, but unchanged number of procurement staff Instead: A further reduction of Procurement headcount is required!
The expectations are high: Increased service orientation (up to 20%) Optimized structure (Head count reduction of 15-20%) Improved networking capabilities Managing of ideas / innovation Proactive purchasing (3-8% cost reduction potential) Manage market according to needs Increased automation fir procurement processes (Reduced throughput times 15-30%) 19.11.2014
Thomas Dieringer| © Copyright
WHY WORKING WITH ALENGIS WILL BENEFIT TO YOU.
19.11.2014
Thomas Dieringer| © Copyright
Alengis brings value and success… Vision Alengis is the leading partner for Procurement organizations wanting anchor themselves as Strategic partner and to increase the value they deliver by reinforcing / improving their organizations, processes, and tools via the use of our Best Practices. Incorporation:
2001
Form:
GmbH
Parent Company:
POOL4TOOL AG
Staff:
11
Core Focus:
Consulting and coaching related to project of definition and implementation of Procurement strategies.
Target Customer:
POOL4TOOL customers. Industrial companies with complex group structure.
Some Customers:
Andritz, Bayer, Carl Zeiss, Grohe, Hauni, Hirtenberger, Kärcher, Knorr Bremse, Modine, Rieter, Singulus, Tchibo, Volvo Cars, VMI …
Goal oriented
One Team
Open
Pragmatic
International
19.11.2014
Thomas Dieringer| © Copyright
The Alengis team… Thomas Dieringer
Function: Strengths: Projects: Experience:
Fournder & CEO Strategic Management, strategic rollout of global sourcing & procurement roadmaps > 200 optimization projects from automotive, manufacturing, process industry Founding and development of POOL4TOOL (since 2000), reorganisation of purchasing organizations and processes
Klaus Lagemann
Function: Strengths: Projects: Experience:
Management Consultant Strategy Consulting in Procurement, all aspects of SRM processes ANDRITZ, Kärcher, … More than 20 years of experience in various functions and responsibilities in Procurement at industry leaders, including textile machinery manufacturers
Bertrand Maltaverne
Function: Strengths: Projects: Experience:
Senior Business Consultant International, Purchase-to-Pay processes and tools, change management Volvo, Kärcher, Grohe, … 13 years in the Procurement organization of a Fortune 500, including 10 yrs in roles related to Procurement processes & tools
Ingo Meyer
Function: Strengths: Projects: Experience:
Senior Business Consultant Process consulting in strategic sourcing, assessment of tools and rollouts Chemical industry More than 8 years as consultant for Procurement and IT in international programs and projects in the chemical industry
Regina Wünsche
Function: Strengths:
Projects: Experience:
Senior Business Consultant Consulting in Procurement, all aspects of SRM processes, requirement management, project management, and product costing Kärcher, Körber, Airbus, Brose… More than 20 years of experience in consulting and management of IT / software projects, development of software Academy, trainer 19.11.2014
Thomas Dieringer| © Copyright
Alengis, competencies & scope Organization Procurement strategy: • • • •
Strategy roadmap Strategical metrics Monitoring Coaching
Process
Technology
Material Group / Commodity Management
SRM Supplier management systems
• • • •
Taxonomy Role & resonsibilities Organizational structure & business integration Methods
Organization:
Supplier Lifecycle Management
• Assesments of organization • Competencies & qualification concepts • Coaching and interim management
• Analysis of the existing practices related to supplier management and identification of improvement areas • Process to segregate and classify suppliers, rules for managing suppliers
Stakeholder Management
Risk Management
• Stakeholder analysis • Management concept with R&D • Stakeholder Management Consulting
• Identification of risk areas • Strategy to integrate risks in existing processes, responsibilities and tools
Change Management
Cost and value management
• Roll-out concepts and training concepts including strategy, process & tools • Execution of training sessop,s
• Transparenter Aufbau eines Wertemanagements • Integration des Wertemanagement in alle operativen und strategischen Prozesse • Integration des Wertemanagements in Entscheidungsprozesse
Analytics/KPI/Dashboards Reporting and analysis Ratings/Audits Supplier audits and ratings eSourcing RFQs, direct and indirect eProcurement Spend Management & catalog management EDI / WebEDI Automation and roll-out Collaboration Integration of other departments/functions and von anderen Bereichen and project processes Initiative Management Steuerung und Messung von Initiativen
19.11.2014
Thomas Dieringer| © Copyright
Procedures and methods Program Management
Risk Management
Customer Business
Assessments Organization
Vision Strategy Roadmap
Change Management
Project Management
Sourcing Process
Roll-Out Concept
Collaborative Supplier Development
Trainings (Academy)
Process Technology
Supplier Lifecycle & Commodity Strategy
Supplier Performance
SRM
Supplier Enablement
Self Service
eProcurement PLC
Analytics
Collaboration
Event Mgmt.
Supplier Integration
Technology
eSourcing
Ratings & Audits
Current state
Strategy Consultant
Best Practices Experience
Customer’s Best Practices Implementation
Operations
19.11.2014
Thomas Dieringer| Š Copyright
Project : Alengis supports a customer in securing his global implementation of an SRM strategy Customer: An Austria-based multinational engineering group, listed on the Austrian stock exchange, with approx. 24,000 employees, 220 locations (production, service, and sales) serving the world. The group is a global leader in all 5 sectors it serves and had a revenue of approx. â‚Ź6bn in 2013.
Situation before project & project description: After various organization changes in the group, the project team sought support and practical experience in structuring and planning a SRM rollout. Therefore a global rollout and operational concept for supplier management and contract management including creation of a Supplier Management Process Manual (Supplier classification model, contract management) was to be built.
Results: The rollout (incl. training and support) was successfully executed.
Duration & effort: 3 Months / approx. 50 Mandays
19.11.2014
Thomas Dieringer| Š Copyright
Project : Alengis assists a customer to define & implement a global Category Management Organization Customer: An Austria-based multinational engineering group, listed on the Austrian stock exchange, with approx. 24,000 employees, 220 locations (production, service, and sales) serving the world. The group is a global leader in all 5 sectors it serves and had a revenue of approx. â‚Ź6bn in 2013.
Situation before project & project description: There were different category management organizations in the group; they was hardly any coordination between them. Activities and product group strategies were uncoordinated and / or non existent. The project included the creation of a plan to align the global Category Management Organization, the definition of indicators, and the construction and monitoring of reporting.
Results: Structuration of the organization, objectives, tasks and duties, creation of transparent monitoring and reporting.
Duration & effort: 6 Months / 60 Mandays
19.11.2014
Thomas Dieringer| Š Copyright
Project: Alengis consultants assist a customer to set-up a transformation program for Procurement Customer: A Scandinavian automotive OEM with a revenue of €13bn.
Situation before project & project description: The customer wanted to modernize its existing IT systems and Procurement processes with regards to the new strategy of the company. The expected benefits were:
Fact-based decisions in the various processes
Automation of processes and centralization
Reduced time-to-market via leaner processes
The purpose of the project was the creation of a Blueprint describing a 3-year transformation roadmap for Procurement based on process best practices and implementation of technology.
Results: Alengis hat den Blueprint interdisziplinär moderiert und erstellt. Die enthaltene Roadmap besteht aus einer empfohlenen Vorgehensweise, die organisatorische, prozessuale und technologische Rahmenbedingungen und Risiken berücksichtigt.
Duration & effort: 3 Months / 60 Mandays
19.11.2014
Thomas Dieringer| © Copyright
Project: Alengis supports a customer in the redesign of its RFQ process in the domain of logistics Client: A group, leader in the market of sanitary fittings, has more than 9,000 employees worldwide and a revenue of approx. €1.45bn.
Situation before project & project description: The project‘s goal was to standardize and to streamline the process related to preparing, issuing, and analyzing transportation / logistics RFQs by using eSourcing technology.
Results: Alengis has standardized the requirements with the customer to make them fit with the current technology. Based on Alengis consultant experience in the eSourcing field (design, roll-out) & on his experience in operational Procurement, a Proof-of-Concept (PoC) was built based on real case data / info. The PoC took into account the required need for change management to mitigate adoption / execution risks.
Duration & effort: 2 Weeks/ 3 Mandays
19.11.2014
Thomas Dieringer| © Copyright
Project: Alengis supports a customer in the definition and execution of its procurement strategy roadmap Customer: The group is a worldwide leader in the field of high-pressure cleaning. It is present in more than 60 countries with 100 subsidiaries and employs more than 10,000 people worldwide. The group had a revenue of around â‚Ź2bn in 2013.
Situation before project & project description: Procurement is centralized but poorly connected and standardized. Procurement management has to reinforce the cooperation and synergies through implementation of policies and projects. The objectives of the project were the standardization and automation of purchasing processes together with the harmonization of the organization across the world.
Results: After a global analysis and design phase, the program was planned and prioritized in terms of improvement areas. Alengis consultants took over the guidance (technical and organizational). The organization is now better interconnected and can identify synergies and implement actions globally. Alengis continues to support the implementation of several work packages that are part of the roadmap. Duration & effort: 4 Years / 4 Man-year
19.11.2014
Thomas Dieringer| Š Copyright
Project: Alengis supports a customer in price calculation for new product development Customer: The group is a worldwide leader in the field of high-pressure cleaning. It is present in more than 60 countries with 100 subsidiaries and employs more than 10,000 people worldwide. The group had a revenue of around â‚Ź2bn in 2013.
Situation before project & project description: The calculation of the customer was very opaque and not standardized across the world. A centralization across companies of development was difficult or impossible. The aim of the project was the standardization and automation of product calculations in the product development process.
Results: The complexity has been reduced via the implementation of standardized processes which were rolled out in all the organization. A technology to support product cost calculation / management was evaluated but it is not yet in place.
Duration & effort: 4 Years / 4 Man-year
19.11.2014
Thomas Dieringer| Š Copyright
Project: Alengis helps a customer in the definition and implementation of his eProcurement roadmap Customer: An operating management holding company which oversees the Group with the seven Business Areas: automation, intralogistics, machine tools, pharma systems, tissue, and tobacco. It comprises leading technology companies with around 100 production, service and sales sites. With approximately 11,000 employees worldwide, the group achieved a revenue of over â‚Ź2 billion.
Situation before project & project description: Der Kunde wollte seine Prozesse im Einkauf automatisieren, konnte jedoch aufgrund mangelnder Erfahrung und fehlender interner Ressourcen die richtigen Handlungsfelder und Reihenfolgen nicht definieren. Die Projektaufgabe war es, die Beschaffungsprozesse innerhalb der Unternehmensgruppe auf Basis einer eProcurement-Roadmap zu automatisieren.
Results: The Alengis consultants created the concept of the for eProcurement roadmap, installed an eProcurement system with flexible capabilities of ERP-integration. They also defined the rollout strategy and the various projects that are part of it. They also supported the implementation of pilot projects in the area of strategic purchasing and operational purchasing processes and their roll-out support and training.
Duration & effort: 1 Month/ 5 Mandays 19.11.2014
Thomas Dieringer| Š Copyright
Project: Alengis supports the customer to rollout eSourcing and ensure “continuous improvement” Customer: The customer is an global operating chemical company with more than 110,000 employees. The subgroup oriented Procurement organization is located in more than 25 producing countries with global and local focus. The group has a turnover of more then 40 bn Euro.
Situation before project & project objectives: The customer had a heterogeneous and poor integrated procurement tool landscape. Multiple tools were introduced in the past with global or local focus. The objectives of the project were the introduction of an integrated and standardized global solution in cooperation with the business and to gain a sustainable implementation.
Results: The Alengis consultants supported the BluePrint process as well as the implementation project of the IT solution and it‘s integration in the existing IT infrastructure. In cooperation with the business partners rollout and change management concepts were developed, training material was created and process guidelines were set up. In the course of the global rollout Know-How transfer and Best-Practice development processes were setup to achieve a continued improvement that ensures a sustainable benefits for the future.
Duration & effort: 3 Years/ 3 Man-years 19.11.2014
Thomas Dieringer| © Copyright
Thank you
Tel.: +49-811-124 92 888 Email: office@alengis.com
http://www.alengis.com https://twitter.com/alengisinc 19.11.2014
Thomas Dieringer| Š Copyright