DIGITAL REPORT 2020
Digital Transformation in Semiconductor Procurement IN ASSOCIATION WITH
02
Digital Transformation in Semiconductor Procurement
03
www.a r m . com
ARM
Arm’s Alisa Bornstein, Group Procurement Senior Director, on the transformation in procurement worthy of Arm’s high-tech reputation
A
rm is a British multinational semiconductor and software design company headquartered in Cambridge, UK. Arm
technology touches more than 70% of the world’s population, and its processor designs have ena04
bled advanced computing in more than 180 billion chips to date, powering products from the sensor to the smartphone and the supercomputer. One of the key functions enabling its success is the supply chain. Alisa Bornstein is Group Procurement Senior Director at the company, with over 25 years’ experience in procurement at companies including Ericsson, BT, Telia, Millicom, IHS and now Arm. “I have experience of procurement start-ups, green-field and significant transformations, as well as leading teams in multicultural, complex and fast moving environments and mature and emerging markets. At the places I’ve been I’ve professionalised and digitalised procurement and brought in innovative, agile, lean and efficient service and solutions to the business.”
05
www.a r m . com
ARM
“ Strategic partnerships with suppliers are critical to supporting an organisation’s objectives” — Alisa Bornstein, Group Procurement Senior Director, Arm
and effective function supporting the business’ objectives and future plans.“ That transformation program was undertaken with the aim of digitalis-
On her decision to join Arm, Bornstein
06
ing core procurement processes to
says: “Arm stood out for its unique
enable efficiencies, boost controls,
people, culture of collaboration and
minimise risks, and improve the experi-
brilliant minds. Almost two years in,
ence for end-users. “Procurement
and after 18 months of the transforma-
digitalisation has exploded across
tion program, I am proud to say that
the entire business environment, and
procurement at Arm today is recog-
its entire value proposition to the
nised as a value-creating, responsible
overall organisation has changed tremendously,” says Bornstein. “Digitalisation influences all areas of procurement, from category management, strategic sourcing, supplier and risk management, to transactional purchase-to-pay operations.”
Arm | Architects of Possible CLICK TO WATCH
|
1:33
07 Naturally, the project has resulted
configuration changes and deploy
in a ground-up overhaul. “We started
all the solutions. We set separate
our digital journey by improving the
workstreams for supplier and content
basics, standardising and redesign-
enablement, and change management.
ing the whole source-to-pay (S2P)
The plan was rigorously monitored
process and deployment of Ariba,”
by external and internal teams.
says Bornstein. “This required a
Advice and support from the imple-
significant change in our ways of
mentation partner in the design phase,
working and the company culture.”
during configuration, testing and
The project hasn’t been without
during go live was absolutely a crucial
complexities. “We were preparing
success factor.”
the rollout for 18 months before we
Having been live with Ariba for the
engaged an external implementation
past year, Bornstein is satisfied that
partner. With them, a schedule was
the digital strategy has delivered and
developed to review the design, make
continues to create significant value www.a r m . com
THE WORLD IS CHANGING. ARE YOU? Faster. More agile. More innovative. More sustainable. Lower cost. Improved EBITDA. If procurement is not accelerating your business outcomes, it’s probably time for a rethink. The world’s leading businesses trust Proxima.
ACCELERATE YOUR BUSINESS OUTCOMES
Proxima: delivering true value in procurement Clare Harris, Senior Vice President Operations, describes how Proxima has established itself as a world leader in procurement consultancy services
Over the last 25 years, Proxima has established itself as a world-leading expert on procurement consultancy services, helping a broad spectrum of customers to unlock their supply chain’s full potential, from the largest Fortune 500 entities to bespoke startups. “Ultimately, we work with our clients’ procurement and commercial teams to help drive value from their cost base,” says Clare Harris, Senior Vice President. As a company, Proxima helps customers optimise what they spend with suppliers and build exceptional procurement functions. “When you think that, on average, about 70% of organisational spend is with suppliers, then you can immediately understand the potential that exists for savings and innovation,” Harris states. However, it isn’t necessarily a purely ‘cost-saving’ exercise; the company specialises in maximising the value of every penny spent. “It’s about understanding what value means to our clients, whether that’s cost, speed, return, risk efficiency, or quality.” Contributing to the company’s enduring success has been a flexible strategy focused on being adaptable to the changing supply chain environment. That evolution, Harris says, has been characterised by increased networking, collaboration and emphasis on procurement itself. The benefits of this industry development have been keenly felt by Proxima’s clients. One in particular, Arm, shares a close working dynamic with it: “Proxima has
Clare @ Proxima
been able to bring both commercial expertise and category knowledge, while also injecting capability at a time when Arm’s existing procurement team were quite stretched,” Harris explains. Establishing a “twoway feedback” loop, the collaborators have been able to react swiftly to challenges and coordinate decisively, “We work together at pace and deliver value quickly.” Using different time zones to its advantage, Proxima’s UK team can hand over to the US team and vice versa, creating a continuous cycle of problemsolving capability. This kind of partnership will prove vital in the postCOVID-19 world, where traditional operational patterns no longer hold true and an innovative mindset is crucial. As other companies strive to build an operating model for procurement that matches today’s challenges, Harris believes that Proxima’s breadth of expertise will become even more valuable. “I think a lot of companies are now asking, ‘How can we transform ourselves to make decisions quicker?’, and that theme will continue into 2021.” Proxima’s aim, then, will be to guide that development and continue its ongoing mission of delivering real value to its customers.
Know your suppliers inside out. Fresh insights, breaking news and unique sentiment scores, keep an expert eye on the companies that interest you.
Real time information Expert curation Free to use
Keeping you well informed and always at your best.
NEW suppleye.com
f in d ou t m or e !
“ Our procurement team recognises the challenge that COVID-19 poses to our organisation and is working hard to continuously assess and mitigate these risks” — Alisa Bornstein, Group Procurement Senior Director, Arm
is looking into the future trends of the procurement digitalisation . “We’re in the time of technology disruption,” she
for the company, for instance by offer-
says. “Why not combine best-of-breed
ing a one-stop shop, with everything
systems and integrate them to work
you need in one place, and standard
together to deliver a great experience
source-to-contract process that
to internal customers and suppliers?”
ensures that purchase-to-pay works seamlessly. Nevertheless, Bornstein
To this end, she emphasises that procurement is about much more
Arm AI Processors Making Smartphones Smarter CLICK TO WATCH
|
1:04
www.a r m . com
11
ARM
12
than buying. “There are many other
The ongoing transformation of Arm’s
areas where procurement adds value
procurement is built on the strategy to
and where technology enables data-
deploy leading procurement practices
driven intelligence and efficiencies.
and processes, supported by tech-
Innovation in Procurement is crucial
nology solutions, to deliver financial
for professional and forward thinking
benefits and added value, compre-
procurement functions.�
hensive corporate social responsibility
E X E C U T I V E P R O FILE :
Alisa Bornstein Title: Group Procurement Senior Director Industry: Semiconductors
Location: United Kingdom
Alisa Bornstein leads Arm’s global Group Procurement organisation responsible for reshaping procurement while driving positive financial outcomes for the company. Her functional accountabilities include category management, strategic sourcing, supplier management, contracts and transactional purchase operations supported by enabling technologies. Her senior experience covers a broad spectrum of the function including procurement business partnering, strategy, processes, policies, data analytics, planning and execution of strategic and transactional operations, communication and training. Prior to Arm, Alisa held senior leadership roles at large enterprises including Ericsson, BT, Telia and Millicom where she focused on transformation and digitalisation of the procurement, and serving as the procurement subject matter expert for the business. Alisa is passionate about people and talent development, building collaborative business partnerships and teams. She is a progressive and highly respected procurement leader, and is a frequent speaker at Procurement and Supply Chain industry global conferences and forums. Alisa holds a Master’s degree in Finance from St Petersburg State University of Economics, Russia. She is Russian by origin, a Swedish citizen for over two decades and resides in the UK since 2014. Alisa is true international leader with experience operating around the world, facilitated by her multicultural and inclusive leadership style, with a warm, direct and consensus approach, and fluency in three languages. www.a r m . com
13
ARM
“ Group Procurement will continue to be a value-creating, responsible and effective procurement function, supporting Arm’s business and mission to architect a smarter world” — Alisa Bornstein, Group Procurement Senior Director, Arm
14
15
www.a r m . com
“ Digitalisation influences all areas of procurement” — Alisa Bornstein, Group Procurement Senior Director, Arm
products,” says Bornstein. “That’s achieved through building collaborative, mutually beneficial relationships, a proactive development of leading practice strategies to maximise the value of these relationships, driving innovation programmes, reducing supplier-related risk, leveraging
(CSR), supplier risk management and
purchasing power and shared values
stakeholder engagement & collabora-
around sustainability and diversity.”
tion. It has required a shift in, among
As with essentially all of the world’s
other things, the way of working
companies, the COVID-19 outbreak
with key suppliers and partners, with
has impacted operations, particularly
Bornstein identifying seven key quali-
when it comes to the supply chain.
ties she looks for, namely being:
“Reports on how the COVID-19 outbreak is affecting supply chains and
• An expert in service type and market • Accountable • A Strategic Advisor • An Innovator • Easy to communicate with • A Cultural fit • Ethics and Compliance-minded
disrupting manufacturing and service operations around the world are increasing daily,” says Bornstein. “The
“Strategic partnerships with suppliers are critical to supporting an organisation’s objectives in maximising the value it obtains from its external partners, providers of outsourced solutions and third-party services and www.a r m . com
17
ARM
18
prediction is that the impact of COVID-
also bears in mind the impact on its
19 on global supply chains is to remain
suppliers, hence the action Arm has
for many months. Our procurement
taken. “We’ve sent communications
team recognises the challenge that
to key suppliers encouraging them
COVID-19 poses to our organisation
to share with us their business conti-
and is working hard to continuously
nuity measures. Arm’s top 20 suppliers
assess and mitigate these risks.”
were contacted, and follow-up is
Bornstein emphasises that it is not
ongoing to understand their plans
only focused on the well-being of its
and any impact this will have on Arm.
own organisation and employees but
We are also working with, for
19
example, IT equipment suppliers to
to be a value-creating, responsible
monitor and maintain our stock levels
and effective Procurement function,
on a regular basis.”
supporting Arm’s business and mis-
It’s no surprise then that Bornstein
sion to architect a smarter world.”
is confident that Arm’s procurement function will continue to live up to the company’s reputation as a hightech leader. “The world is changing. Industries are changing. But our focus in Group Procurement will continue www.a r m . com
ARM 110 FULBOURN ROAD CAMBRIDGE, UK CB1 9NJ T +44 (1223) 400 400 www.arm.com
P0WERED BY