Next generation category management

Sourcing excellence 24th September 2013 First Hotel Copenhagen

Supplier management excellence 25th September 2013 First Hotel Copenhagen

Next generation category management DAY 1

DAY 2

Sourcing excellence

Supplier management excellence

Keynote speaker Prof. Andrew Cox (UK) Novozymes DONG Energy Ahlstrom Corporation (FR)

Keynote speaker Prof. John W. Henke (USA) VELUX LEGO Group Unilever (NL)

two day conference

Next generation category management For a long time, category management has been claimed to be a universal tool for improving cost savings and putting procurement on companies’ strategic agenda. But still most companies find it challenging to maintain cost savings, and to implement category management has proved harder than expected.

DILF has in collaboration with Industriens Fond and Aalborg University chosen to focus on the concept of category management and delve into the related possibilities and pitfalls in a two-day conference. Focusing on how to make category management deeply rooted in the organisation and how to create long-term sustainable results, the conference will stretch over two days: Sourcing excellence will be the theme of September 24th, and supplier management excellence the theme of September 25th.

Whereas the primary focus in companies has long been on pre-contracting in order to achieve cost savings, leading companies today consider the post-contracting field as one of the most important areas in procurement. That is why this two-day conference will concentrate on both pre-contracting and post-contracting, and with category management as our basic approach at both days, we will try to bring category management to the next step.

DAY 1: 24TH SEPTEMBER 2013

DAY 2: 25TH SEPTEMBER 2013

Sourcing excellence

Supplier management excellence

The purpose of category management is to create synergy across business categories, thereby making sourcing a cross-functional process that is best viewed from a general company perspective – which means that sourcing needs to be on the company’s strategic agenda. By addressing sourcing in a strategic matter, you are more inclined to ensure coherence and coordination across your company which is necessary for achieving the great advantages of the sourcing approach.

Having implemented category management and sourcing process the primary focus of most procurement organizations have been on the pre-contracting activities in order to achieve cost savings. However, the leading companies are emphasizing the post-contracting field as a very important area for strategic procurement activities.

Still, there seems to be a tendency of companies struggling with the fact that procurement and R&D function as silos that aren’t able to communicate across department boundaries. At the same time, many companies struggle with involvement and handling of intern stakeholders.

Furthermore it turns out that many companies don’t consider how to optimize supplier relationships with the consequence of unused potential for the company’s competitive capability.

The first day of the conference therefore addresses how companies can overcome these challenges and how best to produce, integrate and optimize the best fitting category management strategy.

During the last decade many companies have turned to their suppliers in order to minimize cost but with very different approaches. Some try to squeeze their suppliers for the last penny and some try to achieve the cost reductions in a more collaborative manner.

The second day of the conference addresses the question of how best to drive value from supplier collaboration. Most companies today are very cost-focused, but to gain the best results a company needs to use the knowledge of the suppliers. This suggests that companies too must give due weight to value in their relations. With the second day of the conference we put focus on how to link together supplier collaboration and performance pressure and more important how to balance those in a beneficial manner.

two day conference programs

DAY 1

DAY 2

Sourcing excellence

Supplier management excellence

Tuesday 24th September 2013 at First Hotel Copenhagen

Wednesday 25th September 2013 at First Hotel Copenhagen

08.30 – 09.00 Registration and breakfast

08.30 – 09.00 Registration and breakfast

09.00 – 09.30 Chairman’s opening remarks

by Morten Munkgaard Møller, Associate professor at Aalborg University

09.30 - 11.00 Category management in project vs. production organisations

The conference’s keynote speaker, Professor Andrew Cox from IIAPS, will explain why category management is a much more difficult and complex discipline in project-based organisations than in production-based organisations. In his presentation, Andrew Cox will explain the challenges and obstacles of implementing category management in both types of organisations and how these can be overcome. ❙❙ What is world-class category management and strategic sourcing? ❙❙ Why are some organisations better at it than others? ❙❙ What are the key challenges and obstacles of implementing category management in project-based and production-based industries?

by Keynote speaker, Professor Andrew Cox, Vice President & Chairman of the Advisory Board, International Institute for Advanced Purchasing & Supply (IIAPS) (UK)

11.00 – 11.30 Break

09.00 – 09.10 Chairman’s opening remarks

by Jesper Schade, Vice President, Efficio Consulting

09.10 – 10.40 Supplier Collaboration and Customer Profitability

Manufacturers, on average, spend 50% of their revenue on suppliers, with some manufacturers spending up to 70%-80%, while service companies spend up to 40 % of their revenue on suppliers. Recognizing this dependency on suppliers, many companies work to develop collaborative relations with their suppliers to maximize the value they receive from their suppliers. Yet, while much research has been conducted on collaborative supplier relations by academics and consultants over the past 25 years, no research has proven that collaborative supplier relations lead to greater customer profitability.

Drawing on recently completed research Professor Henke will discuss some surprising results about supplier collaborative relations and customer profitability.

by Keynote speaker John W. Henke, Professor of Marketing, Oakland University Rochester, Michigan USA and President, Planning Perspectives, Inc. Birmingham, Michigan USA

10.40 – 11.10 Break

two day conference programs

DAY 1

DAY 2

11.30 – 12.30 Connect to Create – Engaging stakeholders and suppliers to boost innovation, increase compliance and create business value

11.10 – 12.10 Supplier co-operation – creating value and not just savings

Sourcing organizations often face similar challenges when engaging with their line of business to ensure compliance, as well as being involved timely in relevant projects.

Since introducing a ‘sourcing engagement manager’ role in Novozymes, category managers meet on a continuous basis with all vice presidents, discussing spend profile and upcoming projects. By providing a ‘one point of contact’ to sourcing capabilities, the aim is to secure better deals, ease implementation of sourcing activities and suggest potential actions to increase compliance and budget optimization. In this presentation you will get to know more about Novozymes’ experiences.

Additionally, you will hear about Novozymes Sourcing’s yearly Supplier Innovation Day – a day with a specified focus area which aims to facilitate openness and dialogue as well as creating an opportunity to discuss ideas and new innovative solutions, by utilizing the strengths and knowledge of suppliers.

The focus areas of the presentation are: ❙❙ A structured approach to promote ‘think sourcing’ in the line of business ❙❙ Creating spend awareness and commitment from upper management ❙❙ Utilizing the strengths and knowledge of suppliers to create business value

Many procurement organizations are focusing on spend and savings. The organizational structure and KPI definitions is often reflecting the overall targets of bringing savings to the companies, but is this the best way to practice procurement if the scope were value and not just savings?

Value based co-operation with key suppliers has been a strategic focus area for VELUX during the last years. The target has been to approach the suppliers with a crossfunctional approach and use value and not savings as the overall target.

The headlines for the co-operation have been: ❙❙ Aligning category management definition with suppliers ❙❙ KPI setting and performance measurement ❙❙ Value stream mapping ❙❙ Standardization of materials and processes ❙❙ Business development activities with Tier I and Tier II suppliers ❙❙ Value based CSR corporation

by Jesper Andersen, Purchase Manager, VELUX

12.10 – 13.10 Lunch 13.10 – 14.10 Securing supply through supplier management

by Mette Juulsgaard, Head of Sourcing Development & Analytics, & Anette Svendsen, Business Developer, Sourcing, Novozymes

The LEGO Group started working with Supplier Relationship Management many years ago and it is still seen as the way to continuously secure supply, innovation, long term relationships and best use of internal resources.

12.30 – 13.30 Lunch

Continued next page

two day conference programs

DAY 1

DAY 2

13.30 – 14.15 Presentation from DONG Energy

Costs and savings have been and will always be in high focus in any procurement organization, but if you ask the production, focus is on getting materials to the line – at the right time, right quantity and right quality. This is an agenda that the procurement organization has to take ownership of.

by Maria Lindhoff Kjær, Senior Manager, Sourcing Analysis, DONG Energy

14.15 – 14.45 Break 14.45 – 15.45 How to measure the performance of your category management

Procurement organizations – in particular for companies with an international/global footprint - have focused over the past 10 years on implementing category management structures with the objective to bundle volumes and consolidate the supply base.

Category management was regarded as “the solution” to achieve a number of defined targets and to increase the overall profile of procurement in such organizations.

But how can the performance of a category management organization be measured in an efficient and meaningful way and be aligned with the company’s financial results? Ahlstrom has implemented a holistic approach to performance measurement in procurement based on the following main topics: ❙❙ Tracking of results on a project-by-project base at category level ❙❙ Establish center-led processes and tools ❙❙ Definition of category strategies for all main categories (including transactional categories) ❙❙ Multi-year forward looking project pipeline and permanent 24 month rolling forecast ❙❙ Full integration with business financials and business reviews ❙❙ Financial validation of procurement results and tracking based on monthly KPI’s ❙❙ Transformation of procurement from a support function into a business function

by Martin Kunz, VP Global Sourcing, Ahlstrom Corporation (FR)

15.45 – 16.00 Chairman’s closing remarks

by Morten Munkgaard Møller, Associate professor at Aalborg University

❙❙ ❙❙ ❙❙ ❙❙ ❙❙

Relationship management - what, why and how Differentiated approach towards the suppliers Supplier evaluation Supplier performance - what, why and how Global implementation of supplier performance

by Jane Timmermann Schlenzig, Category Director, LEGO Group

14.10 – 14.40 Break 14.40 – 15.40 Crafting innovation alliances with suppliers

Unilever has a bold ambition to double the size of its business while reducing their environmental footprint and increasing their positive social impact. Strong partnerships with suppliers that share Unilever’s sustainable growth ambitions are critical to continuing success. The goal of “Partner to Win” is to become the customer of choice for them.

As part of the “Partner to Win” initiative innovation alliances have been forged; their crafting requires co-invention not only of future products, but of the very alliances under which the future will be created.

The session will discuss sources of mutual motivation and the evolving architecture of commercial innovation alliances.

by Graham Cross, Director of Commercial Alliances and Supplier Innovation, Unilever (NL)

15.40 – 16.00 Chairman’s closing remarks

by Jesper Schade, Vice President, Efficio Consulting

practical information

Venue and accommodation

2-day conference, September 24th and 25th 2013 Day 1/Sourcing excellence Tuesday September 24th 2013 Day 2/Supplier management excellence Wednesday September 25th 2013 First Hotel Copenhagen Molestien 11 DK -2450 Copenhagen SV Telephone: +45 3361 5134 Accommodation is not included in the conference fee. Should you require accommodation while attendding the conference, please contact the hotel directly.

Prices

DKK 3.975,- DKK 6.475,- DKK 5.475,- DKK 7.975,-

Member of DILF – 1 day attendance Member of DILF – 2 days attendance* Not member of DILF – 1 day attendance Not member of DILF – 2 days attendance*

* Attend 2 days yourself – or share with a colleague The fee is inclusive of programme materials and refreshments as stated in the programme.

Full payment is required within eight days from receipt of invoice.

Payment must be received prior to the conference. A receipt will be issued on payment.

VAT will be charged at 25% according to Danish regulation.

Partial refunding can be applied for under certain circumstances. Applications are handled by the Danish customs. For further information please see www.skat.dk

Registration

Use the registration form at dilf.dk/registration.

Invoice and confirmation are sent after you registration is received.

Cancellation and substitution

For cancellations received in writing no later than 30 days before the event the fee with a deduction of 10% for administration charges can be refunded. A 50% cancellation fee will be charged for cancellations received in writing no later than 14 days before the event.

Cancelations received in writing later than 14 days before the event will not be refunded.

Substitution is allowed at no extra charge and the invoice will be corrected according to new participants’ membership status. Please inform DILF of any substitutions.

Terms and conditions

The fee is inclusive of programme materials and refreshments as stated in the programme.

Full payment is required within eight days from receipt of invoice. Payment must be received prior to the conference/master class. A receipt will be issued on payment.

DILF reserves the right to change or omit event features, dates and venue. In case of changes DILF is not responsible for cover­ing airfare, hotel or other costs incurred by delegates. In case of cancellation the paid fees are refunded, but above mentioned costs are not. DILF reserves the right to decline participants from direct competitors to speakers or sponsors of the event.