This document outlines the transformation of the procurement team at an international retailer over a 4-year period from 2009 to 2012. It describes how the team developed their capabilities, improved stakeholder management and relationships, and became a more strategic partner within the business. The procurement team grew to deliver higher value through strategic sourcing, achieving £60 million in annual benefits with a 45:1 return on investment. They established themselves as an essential commercial function through their involvement in all strategic decisions across the company.

1. Our Capability Approach:
The Journey to Becoming a
Critical Friend
Roger Davies
Group Head of Procurement

2.  International Multi-channel Retailer
 General Merchandise (Clothing, Home, Beauty)
 Food
 No.1 provider of womenswear & lingerie in UK
 21 million customers visit our stores each week
 £8.9Bn annual turnover
 78,000 Employees
 700 stores in UK
 390 stores across 44 international territories
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3.  Team of 17
 Work across 5 categories:
Retail & Insights &
Logistics &
Corporate IT Marketing Cross-Category
International
Services Sourcing
£2Bn Non Merchandise Spend
4 year transformation process:
2009 2012
Low spend tactical High performing
purchasing team strategic sourcing team
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4.  Low Value Projects
 £20M Annual Benefits
 Transactional Purchasing  Mixed Feelings re Ability / Value
 No Mandate  Ambiguity of Role of Procurement
 No Sourcing Process  Lack of Stakeholder Engagement in Key Areas
 No Involvement in International
 Excluded From Strategic Projects
 No Procurement Leader for 9 Months
 30% Reduction In Headcount Following Consultation Process
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5. 5
Working with you to build opportunities that drive value and deliver more…
…bang for your buck!, profit/margin, for less money, robust contracts, high performing suppliers, innovation
Delighted Team External
Stakeholders
Transformational
development making Procurement is an
us highly effective. inspirational place to
Our key stakeholders
Culture of optimum work and we are
are delighted by
output whilst respects sought after for our
Procurement because
for individual choices knowledge and
of the value we deliver.
about how we work. expertise.
Structure that
We make it easy for
facilitates support We benchmark
them to work with us.
through challenges ourselves against 10
and celebrating companies.
success.
Team Sat 80%
LT Feedback 100% G/G
100% Development Plans Top quartile benchmark
Others 85%
100% PDRs aligned
ROI 30:1, Contracts with 100% key suppliers, 100% key suppliers Risk assessed and managed
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6. CAPABILITY
MODEL DEVELOPMENT
STAKEHOLDER
MANAGEMENT
&
INFLUENCING
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7. Strategic sourcing, negotiation & contracting support
>£500k spend contracts
> £500k £1.9Bn spend p.a.
Approx. 300 Suppliers
< £500k
Best practise buying guidelines, tools & templates
<£500k contracts
£135m spend p.a.
Approx. 3000 Suppliers
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8. CAPABILITY
MODEL DEVELOPMENT
STAKEHOLDER
MANAGEMENT
&
INFLUENCING
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9. iLEAR
N
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10. Designed, facilitated & delivered by members of the M&S Procurement Team
M&S Learning & Development Approved
Over 400 M&S delegates trained with extremely positive feedback (100% Excellent or Good)
10

11. 11
 Negotiation training
 Marketing, Communications &
Commercial Acumen
Hypnotik Dance Group
 Business planning, budgeting,
commercial awareness & communications
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12. FIERY SUNSHINE
RED YELLOW
EARTH COOL
GREEN BLUE
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13. CAPABILITY
MODEL DEVELOPMENT
STAKEHOLDER
MANAGEMENT
&
INFLUENCING
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14. STAKEHOLDERS
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15. Positive To Improve
• Professional • Profile
• Dedicated • Clarity of role
• Liked • Prioritisation
• Known • Key Commercial Skills
• Commercial Knowledge • Recognition of Stakeholder Issues
• Plan A (in part) • Influence
<50% Satisfied
Target > 85% Satisfied
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16. Valued and Trusted
Early Engagement
Input
Challenges Part of the Core
Appreciated Project team
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17. “IT”
Stakeholder
“Corporate Services”
Stakeholder
Power
“Logistics”
Stakeholder
Interest
Example Stakeholders marked
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18. Category - Stakeholder Communication Action Plan
M inimal Engagement
Stakeholder Relationship
N ame Colour O wner Activity - Generic Activity - Bespoke FO CUS ACTIVITY
A name Blue SSh Send out Quarterly comms Adhoc Meetings where required
Keep Informed
Stakeholder Relationship
N ame Colour O wner Activity - Generic Activity - Bespoke FO CUS ACTIVITY
A name Red EW Send out Quarterly comms Fortnightly update meetings
Keep Satisfied and Informed
Stakeholder Relationship
N ame Colour O wner Activity - Generic Activity - Bespoke
Regular quarterly meetings and weekly
Project updates, facilitated by
Quarterly Comms Procurement. Liaison with LT Team on a
A Name Yellow TB Quarterly 1-2-1's Weekly project team meetings weekly basis.
Fully Engage/ Involve, keep Informed, keep Satisfied
Stakeholder Relationship
N ame Colour O wner Activity - Generic Activity - Bespoke
Quarterly comms/ informal
conversations/ project
A Name Green SSh specific meetings Regular monthly meetings
Regular monthly meetings
Informal fortnightly engagement
Quarterly comms/ informal Walk the floor
conversations/ project Attend Stakeholder weekly team meetings, Additional adhoc meetings as required
A Name Blue SSh specific meetings inlcudes 15 mins Procurement update. per project.
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19. Stage of Engagement
45%
 Stakeholder delight grows 40%
from 50% (excellent and 35%
v good) to > 75% ....with
30%
95% satisfied
25%
20%
15%
10%
5%
0%
Early - Late
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20.  Low Value Projects
 High Value Strategic Projects
 £20M Annual Benefits  Stakeholders delighted and clear on role
 Transactional Purchasing
 £60M Benefits (ROI 45:1)  Mixed Feelings re Ability / Value
 Fully embedded in all areas
 UK Mandate
 No & International Projects  Ambiguity of Role of Procurement
 On all relevant Leadership teams
 Mandated Procurement Policy
 No Sourcing Process  Lack of Stakeholder Engagement in Key Areas
 Sponsored by CFO
 Recognised Sourcing Process  No Involvement in International in company
 Run the most sought after course
 Corporate Coach  Excluded From & valuable function
 Highly regardedStrategic Projects
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21. ESSENTIAL
COMMERCIAL
PARTNERS
Actively involved in all key
strategic decisions
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