Staying focused on procurement’s business value: CEVA’s CPO shares strategy

Staying focused on procurement’s business value: CEVA’s CPO shares strategy

Steve Hall Simon Boggis FCIPS Jennifer Sikora
Moderator CPO & Executive Vice President Global VP Marketing
Procurement Leaders Procurement CombineNet, Inc
CEVA Logistics

25th September 2012
3:00pm BST | 4:00pm CEST | 10:00am EST

Next-Generation E-Sourcing for
Increasing Spend Under Management
CombineNet Introduction

Copyright © 2012. CombineNet, Inc.

CombineNet Company Overview

The Company The Technology Customer Value

Established in 2000. Best of Breed Solutions that Capture >2X spend under E-
improve Strategic Sourcing – Sourcing management.
Global: Offices in holding 21 U.S. patents.
Pittsburgh, PA; London, UK; Address complex spends
Hamburg, Germany. Software-as-a-Service (SaaS) with advanced functionality.
Partners for Latin delivery model for ease of
America, Middle East, APAC. adoption and scale Fast implementation and
broad adoption for any type
Customers: Global 2000 Easy integration into your of user.
spanning CPG, Food & environment to complement
Bev, Retail, Manufacturing, existing applications. Nearly 100% see full payback
Transportation, and more. after 1st sourcing event.


Best of Breed E-Sourcing Solutions

Bid Award
CombineNet
Create CombineNet
Expressive Bidding® Scenario
Spend RFxpress for Contract
Expressive Feedback Analysis
Analysis E-RFX or Management
Event Management & Bid
E-Auction
Optimization

CombineNet ASAP

Supporting End-to-End E-Sourcing for All Spend Categories
with Advanced Technology Solutions


CombineNet ASAP® for Strategic E-Sourcing

Key Differentiators:
SaaS-based Best-of-Breed product used Optimization Engine handles extensive
by sourcing teams and their suppliers. data inputs; 21 patents.

Speeds, simplifies, and centralizes the Scenario Builder enables rapid and
creation and management of sourcing advanced ‘what-if’ analysis.
events of any size, scale, or complexity.
Expressive Bidding® and Expressive
For any spend category (direct Feedback support an expressive,
materials, indirect collaborative marketplace between
materials, transportation, services). buyers and suppliers.

Complements and enhances existing Fast Implementation – 1 ½ day training,
solutions and processes. quick-start wizards, template uploads,
event editing, and more enable fast,
smooth adoption and immediate ROI.


Where Do Our Customers Use Us Today?
Across All Spend Categories:
Direct, Indirect, Transportation, Packaging, Services
- Spends Sourced (sampling) -
Chemicals Capital Expenses Air Freight Bottles/Vials Armored Car Svcs
Commodities Construction Mat’s Drayage Cans Facility Services
Fats & Oils Displays Ocean Cartons Labor
Food Ingredients Fleet Vehicles LTL Corrugate Legal Services
Raw Materials Office Supplies Parcel Flexible Films Meetings
Resins Marketing/Media Truckload Printed Labels Printing
Steel Telecom/IT Equip Rail/Intermodal Pallets Treasury/Finance

From the Routine…
 51% of events have <100 items

… To the Complex
 20% have >1,000 items
 20% have >50 suppliers
 18% have >10,000 bids
Based on FY2011 data


Increasing Spend Under Management:
Large European Conglomerate
>1,000 e-sourcing events conducted Customer Example #1:
annually. $ Billion in Spend Managed Annually
Ariba user since 2007. 8
Adopted CombineNet in January 7
2011. 6
More than 2X Increase in Corporate 5
Spend Managed between years 1 4
and 2 since implementing 3
CombineNet ASAP. 2
1
0
$7.5 Billion E-Sourced 2010 2011 2012
in 2012
(projected)
Ariba CombineNet


Increasing Spend Under Management:
Large Retailer
Procurement organization tasked
Customer Example #2: with capturing non-merchandise
$ Billion in Spend Managed Annually (Indirect) spend.
3.5 Long-term Procurement Suite user.
3 Adopted CombineNet ASAP in 2010:
2.5 – Captured “Sacred-Cow” spends
2 including Transportation.
1.5 – With CombineNet ASAP, able to
1 leverage the collective spend
across all stores in sourcing
0.5
events.
0
2010 2011 2012
Estimated 225% Increase in Spend
Ariba/SAP CombineNet E-Sourced in 2 Years


We Do this for Companies Just Like Yours

A Wide Variety of Customers across All Industries


CEVA’s Procurement function:
Creating superior value

Simon Boggis FCIPS
Chief Procurement Officer

CEVA in a nutshell

Revenue: €7 billion

Employees: over 51,000

Locations: over 1,000

Presence: in over 170 countries

Combined storage space:
10 million sq m

Figures for Year Ended, 31 December 2011 11

CEVA's Procurement function | Creating superior value

Balanced sector portfolio

Other 7%

Automotive 28%
Energy 6%

Industrial 16%

Consumer & Retail 21%
Technology 22%

12

Strong and diversified customer base


CEVA’s Procurement function
Diverse global team

Supported by innovative
Global team Rigorous process
technology

•Diverse community of •Five step sourcing •Spend Analysis – C-GAP
procurement professionals methodology •eSourcing Solutions
•Experienced team with •Supplier performance •BAIT – savings tracking
category expertise driving management solution
thought leadership and •Balanced scorecard •GUARD – asset
shared best practices (including risk evaluation). redeployment solution.
•Center-led eSourcing
program and strategy.

• Category Management: global, regional and local approach
• Supplier Relationship Management: think globally, act locally
• Risk Management: assessment, management, monitoring
• Global Procurement Accredited by Chartered Institute of Purchasing and Supply

Market conditions are driving requirements for
innovative sourcing solutions

• Requirements for better quality and
• More demanding end customers
more adaptive service and products
• Classic strategic sourcing models
• Demand for higher flexibility in
are inflexible and in fact limit the
operations
options that are on the table
• Ability to foster options and stay flexible –
• Traditional sourcing approaches limit
taking into account such “soft factors” as
the ability of suppliers to suggest or
safety, quality, environmental concerns and
propose alternatives to a standard
overall supplier stability
specification

Increased complexity of the supply chain

Early 2000s supply chain Globalization driving increasing complexity
• Component standardization allows production to be
spread globally to optimize costs
• Multi-country sourcing with consolidation hubs before
shipping to end customers
• Supply chain control and visibility are critical
• Compliance to regulations throughout the supply chain

Today’s supply chain

CEVA’s eSourcing evolution (2008 – 2012)
Number of e-Auctions
100

50 Traditional Sourcing E-Auctions, Online RFX Advanced eSourcing

0
2007 2008 2009 2010 2011 2012

Completed Categories Ongoing • 2008 – Limited Experience. 100% of e-Auctions supported by
Global Procurement. Limited Number of eSourcing Champions.
Ground Transportation Packaging Optimization
Temporary Labour Intermodal • 2009 & 2010 – Advancing. 20% of addressable spend covered
Office Supplies and Print Payroll by eSourcing. 51 events conducted in major BUs. eSourcing
Policy.
Packaging
Security
Transport Modelling: • 2011 - Building Business Unit competency and eSourcing
Fuel Margins confidence. 75 e-Auctions completed in 2011 covering over
 Ground €152 million spend. Global three year eSourcing strategy .
Outsourcing
 Rail
Marketing  Ocean • 2012 - Strategic approach for category eSourcing. Increase
 Air
Hardware value proposition for Business Development and Ocean.
Warehouse Racking Accelerate benefits delivery through Advanced eSourcing -
CombineNet.


Where do we want to be in 2013?
Objectives eSourcing Strategy Implementation
• Drive maximum value from advanced eSourcing
solutions (CombineNet)
• Realize business wide engagement
• Drive eSourcing excellence through
organizational capability and impeccable
execution

Deliverables
• eSourcing integration with analytics tools
• Business Units self sufficient
• Reporting of eSourcing savings
• Extended collaboration with functions and
operations teams

Performance Metrics
• Penetration of eSourcing tools: exceeds 50% of
the total addressable spend of the BU projects in
the budgets
• Country eSourcing Competencies - at least one
‘proficiency level 1’ within four geographical
regions (Northern
Europe, SEMEA, Americas, Asia Pacific)


CEVA’s strategic approach for category eSourcing

High complexity and low B High complexity and high A
value/spend initiatives value/spend strategic initiatives
High

Advanced e-Sourcing Advanced e-Sourcing
Complexity

Low complexity and D High value/spend and low C
Low value/spend complexity initiatives

Traditional e-Sourcing Traditional & Advanced e-
Quick Wins/Supplier Margin Sourcing - Maximize
Reduction Commercial Advantage

Low Value/Spend High


Why advanced eSourcing?
Categories Sourced with CombineNet

Australia and New Zealand
UK Ground Transportation (FTL) European Pallets
Forklift Trucks

• €27 million spend, 1,360 Lanes, • 237 Forklift leases • Netherlands, Belgium, Germany,
42 Suppliers • 20 CEVA sites impacted France
• Six sites, 119 starting postcode • Suppliers bid on same template • Top 10 pallets with historic
locations structure volume of 240,000 pallets, Spend
• Five percent savings identified • Comprehensive specifications - €1.2 million
• The right balance of cost and made possible • Seven European suppliers
supply chain value achieved • Enabled packages to provide engaged
• Stronger carrier relationships lower-cost options • Nine percent savings identified -
through system engagement • Supplier feedback enabled RFX advanced sourcing.
• Fast time to market - saved two • Savings TBC. • Non price attributes captured:
to three weeks of data crunching min volume, lead time, payment
terms.

Key Differentiators:
• Suppliers can add value through expressive, creative and alternative bids (equipment type, transit
time, volume offers, discounts, capacity levels, rebates)
• TCO Modelling – rates, accessorial, fuel
• Flexible RFI - analysis of all KPIs (capacity, service levels, sustainability safety and risk factors
• Flexible scenario analysis and award optimization - rapidly review the data and compare different
possible award outcomes
• Real time Expressive feedback – configurable ways to show suppliers their competitiveness
• Flexible Training: web-based training for buyers and participating suppliers, comprehensive user guides.

Global spend analytics:
Transforming data into value

The value of data with integrity

Challenge CEVA’s Benefits
• Having a single Solution • Acceleration of
source of the truth Sourcing Initiatives
• Spend analysis -
for both identifying
CEVA’s C-GAP - the • Driving NWC
opportunities and
first and the last Improvements
Data
measuring cost
reduction success
step of the strategic
sourcing process • Supplier
that drives total rationalization
• Ability to value
implement and • Invoice
track progress on rationalization
• “Companies that do
areas such as
Spend Analysis
working • Procurement
save 67% more
capital, contract compliance
than companies
compliance and
that do not.”
invoice • Customer
Aberdeen Group
rationalization development
programs opportunities


Criticality of data integrity:
Data that is processed, organized and structured
C-GAP

ERP ecosystems External Business Risk Data


Integrating spend analysis with eSourcing:
Transport modelling illustration

• Scenario building/analytics and
optimization enables:
• Information orchestration to meet
desired end state
Working
Compliance
capital • Set-up of agile, scalable solutions to
rapidly sense and respond to changes in
Risk Carrier
customer requirements
scorecard management • Risk mitigation by managing
promotions, demand, seasonal product
Market and ‘early buy’ opportunities
Sustainability
intelligence
• Information visibility to facilitate fact-
based decisions.


Conclusion

• Procurement professionals assisted with advanced sourcing tools should yield far
more than just cost reduction
• In order to continue to advance the procurement profession and delight customers
we must continue:
- Doing things better
- Pushing the boundaries where we never could do before
- Ensure continuous innovation is a catalyst for creating superior value.


Q&A

Steve Hall Simon Boggis FCIPS Jennifer Sikora
Moderator CPO & Executive Vice President Global VP Marketing
Procurement Leaders Procurement CombineNet, Inc
CEVA Logistics

25th September 2012
3:00pm BST | 4:00pm CEST | 10:00am EST

Staying focused on procurement’s business value: CEVA’s CPO shares strategy

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à Staying focused on procurement’s business value: CEVA’s CPO shares strategy

Similaire à Staying focused on procurement’s business value: CEVA’s CPO shares strategy (20)

Dernier

Dernier (20)

Staying focused on procurement’s business value: CEVA’s CPO shares strategy