Strategic Sourcing & eProcurement Implementation in a MRO setting - Heavy Machinery

1. eProcurement / Sourcing MRO Environment Utilising Lean Six Sigma Anand Subramaniam

5. MRO - Heavy Machinery Industry (Implementation Highlights)

15. Stakeholder Management Strategy Reaching critical mass in contract coverage Risk Strategy Change Management Approach Supplier Adoption Legal & Fiscal - Country BU / Site constraints Technical Integration Providing Change Management guidance, with a specific focus on the areas relating to e-procurement implementation Case Studies - extracting lessons learnt from a range of industries (related and unrelated) who had undertaken different approaches to Change Management

18. Results Achieved Business Metrics Governance & Internal Controls Client Satisfaction P.O. Processing Cycle Time e-Transaction: Invoice Contract: Cycle Time Length Ledger Miscodes Suppliers Connected via Web Savings via Web Stock Keeping Unit Before Implementation 40-50% 40% 23 Days ?? 6- 28 months 57 pages 78% 0 0 283,000 After Implementation 90% 93% 2.1 hour 98% 45 days 6 pages 9% 17,000 $112M 134,000

19. Strategic Sourcing

20. Identify - Sourcing Solution Solutions Overview Diagnostic tool List of key vendors Requirements template and guidance Discussion paper Experiences of e-procurement Output - Deliverables Input - Questions Addressed Stakeholder buy in - Increase awareness & understanding What solution types are available ? What & why on solution fit? What lessons from dis / similar firm? What & why to capture? Who are leaders / visionaries? Specific Solution highlights, why?

21. Strategic Sourcing - Roadmap Source: Adjoined Consulting. LLC

24. eProcurement

26. eProcurement Challenges Gaining initial interest Making the case Commit resources Deliver the benefits Leadership and ownership of the project Management and user buy-in Selling the benefits Management and user buy-in Selling the benefits Organisation design Compliance with corporate contracts and processes

27. eProcurement - Roadmap