Presentation Transcript

1. Dawn of A New Era:Radical Procurement Innovations Moderators: Mary Holcomb, PhD, Associate Professor of Supply Chain Management, University of Tennessee Panelists: Tommy Barnes, President, Con-way Multimodal Theresa Dirker, VP Integrated Supply Chain Transformation, IBM Sheila Roethke, Associate Director Logistics Procurement, Mondelēz International John Urban, EVP & General Manager Logistics Services, GT Nexus, Inc.
2. $500 million apparel brand 10 Million shipping units annually Operational in 13 countries 42 Patagonia retail Stores Purchase to Pay Open account financing PO & WIP Collaboration Pack & Ship Customs Process Automation App Xpress Doc Library Moved transactions onto an open account platform to eliminate LCs Automated AP processes to eliminate manual processes, errors and delays Saved $100k in first year Integrated with Customs Broker Single View into Work in Progress for Customer Reps Distribution Markets & Retail Factories WIP AP System North America POs Bank Payment Status Europe Comm. Invoice Funds FCR DCs Broker APAC Inventory FF Direct Ship Pack & Ship PROFILE PLATFORM CAPABILITIES RESULTS & VALUE
3. Dawn of A New Era:Radical Procurement Innovations Moderators: Skip Frisz, Director Logistics Operations, Darden Restaurants Mary Holcomb, PhD, Associate Professor of Supply Chain Management, University of Tennessee Panelists: Tommy Barnes, President, Con-way Multimodal Sheila Roethke, Associate Director Logistics Procurement, Mondelēz International John Urban, EVP & General Manager Logistics Services, GT Nexus, Inc. Joanne Wright, VP Global Hardware Execution, IBM Integrated Supply Chain
4. Integrated Supply Chain (ISC) ISC supports all IBM lines of business providing the following: About IBM Conducts business in 200+ countries ~400,000 employees globally (~25,000 in ISC) Works with ~100,000+ business partners Comprised of 5 business units: Supply Chain Execution: Manufacturing, New Products Introduction, Cross-platform Solutions Integration, Engineering, Supply/Demand & Inventory planning, Customized Solutions Procurement: Production, General & Services Procurement, Procurement Process Outsourcing Quote to Cash / Sales Support Pre-Sales support (New 2013 Mission): Client proposals and quotes, Solution Design, Order processing Post-Sales support: Order Fulfillment, Contract Administration, Accounts Receivable Asset Management Risk and Compliance Management Supply Chain Transformation and Analytics ISC Global Transformation Journey Multi- National Towers Globally Integrated Enterprise Smarter Value Chain 2013 Revenue
5. Influence / Support Sourcing Relationship Mgmt Spend Analysis Contract Management Client, Client Influencers Strategic Sourcing Performance Reporting Strategy Engineers Relationship Governance Supplier Selection Strategic Sourcing Roles and ResponsibilitiesExtend from Client Influence through Supplier Selection and Relationship Management: Driving Value in Cost, Quality, Supply Assurance
6. Moving to an Effective Category Management Model Traditional New Model Category Management Strategic Sourcing Operational Sourcing and Buying Operational Buying Transactional Transactional Contribution comes from delivering value, not processing transactions.
7. Procurement Center activities Purchase Order (PO) Processing “Hands-Free” Transaction administration Vendor Master File updates Operational reporting Systems administration Bypass tracking Blocked Invoice administration Sourcing Activity Also co-located- Accounts Payable administration Global Procurement Centers and Satellite LocationsWe have consolidated our transaction processing into three low-cost, efficient centers to support our global requirements Operations Budapest, Hungary (European Languages) Bangalore, India (English Speaking) Shanghai, China (Asia Pacific Region) Ghana, Africa Sofia, Bulgaria Chengdu, China Satellite locations
8. Dawn of A New Era:Radical Procurement Innovations Moderators: Skip Frisz, Director Logistics Operations, Darden Restaurants Mary Holcomb, PhD, Associate Professor of Supply Chain Management, University of Tennessee Panelists: Tommy Barnes, President, Con-way Multimodal Sheila Roethke, Associate Director Logistics Procurement, Mondelēz International John Urban, EVP & General Manager Logistics Services, GT Nexus, Inc. Joanne Wright, VP Global Hardware Execution, IBM Integrated Supply Chain
9. Mondelēz International’s Journey with eSourcing… Within Mondēlez International’sSourcing Framework, Technology brings value in Supplier Selection & Supplier Relationship Management Simplifies & enables Procurement to collaborate with Integrated Supply Chain partners & suppliers more efficiently & effectively Optimizes service & costs in Mondelez North America’s Supply Chain The Transportation Category has seen benefits related to eSourcing…
10. Transportation eSOURCING EVOLUTION Full Truckload Modes were sourced separately Cumbersome process with Operations to build specifications for bid events Multiplesystems to manage the analysis & supplier selection process Significant implementation and compliance challenges Segmented Approach 2010 & Prior Time-consuming & Inefficient partnerships Partnered with single eSourcingsupplier to manage sourcing events Leveraged Full Truckload volume across all modes Efficient Supplier Selection…time reduction of 50% All Rates documented in one place for compliance Leveraged Scale (2011-2012) Consolidated, Semi-Automated & Improved Partnerships Collaborative (2013-Now) Improved use of the tool to optimize full suite of options Operations & Procurement creates value together Balanced decision-making between Service & Cost Greater transparency and collaboration with suppliers Integrated decisions & simplified processes
11. Results… “Costs compared to the Market” are closely aligned to F&B industry… Requested Delivery Date (RDD) improvement in 12 month period of 4-5% Improved partnership between Procurement & Logistics Operations Compliance effectiveness…ensures a “Pass” Scorecard Enables Procurement & Operations to incorporate Carrier Scorecard performance in the selection process Segmented Approach Leveraged Scale Collaborative Transportation Market… All Sectors Food & Beverage Kraft/MDLZ Path Forward… Integrate Full Truckload category management into eSourcing tool by incorporating TMS & Benchmark data to further automate the process to optimize cost & improve Requested Delivery Date to our customers
12. Questions… 1. Prior to 2010 how did Kraft/Mondelez International approach their bid events for Transportation? Segmented Approach Leveraged Scale Collaborative 2. How did Kraft/Mondelez International’s Costs compare to the Transportation market in 2012 when they implemented a Collaborative approach? Better than the market In line with the market Worse than the market
13. Dawn of A New Era:Radical Procurement Innovations Moderators: Skip Frisz, Director Logistics Operations, Darden Restaurants Mary Holcomb, PhD, Associate Professor of Supply Chain Management, University of Tennessee Panelists: Tommy Barnes, President, Con-way Multimodal Sheila Roethke, Associate Director Logistics Procurement, Mondelēz International John Urban, EVP & General Manager Logistics Services, GT Nexus, Inc. Joanne Wright, VP Global Hardware Execution, IBM Integrated Supply Chain
14. Suggested Questions: How long does it take to implement a network and functionality as you described for Patagonia? What’s the value for suppliers to participate? Is it hard to get them to comply? What’s the value of a Public Cloud Network that is multi customer/multi enterprise vs. a Private Cloud Network?
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