2. 2
CDK Global, Vice President of Global Procurement and Supply Chain
• Lead procurement and supply chain programs
• Lead business transformation, providing strategic benefit in cost, quality,
responsiveness and continuity.
Ipsos, Vice President IT for North America, (top-three global market research
company)
• Responsible for IT services
Motorola, variety of senior technology leadership roles, including:
• Global supply chain systems, IT/technical strategy, IT procurement, business
relationship management, portfolio and program management, application
systems development
Who Am I?
3. 3
• Leading global provider of integrated IT
and digital marketing solutions
• Automotive retail and adjacent industries
• Automotive dealer solutions in 100 countries
• 30,000 automotive retail locations and most
manufacturers
• More than $2 billion in annual revenues
Who is CDK Global?
4. 4
Joined CDK shortly before its spin-off from ADP and implemented new
operating model and global sourcing structure that provides:
• Significant margin improvements
• Strategic sourcing strategies and process simplification
• Significant investment in procurement systems
• Featured in Supply Chain World Magazine
For business transformation program, executive sponsor for:
• Implementing Robotic Process Automation
• Leveraging Global Insource Centers
What I am doing at CDK?
5. 5
A leading challenge for procurement
leadership is to realize benefits from
data analytics?
True or False
6. 6
• Technology investments drive innovation in all companies today
• Cost optimization can make or break investment effectiveness
• Procurement and IT often can be at odds in the investment process
• Role confusion (IT negotiated, business negotiated, not negotiated!)
• Value gets lost, innovation gets delayed and careers are damaged
The Challenge
7. 7
• Provide new capabilities for customers and employees
• Reduce business cost run rates
• Five Nines availability, no less
• Acquire hot new tech at flea market prices…because…
• ….Everyone knows technology is too expensive….
C-Level Expectations
9. 9
Big Three Programs to Procurement Excellence
Procurement Operating Model
• Model and org review
• Key areas of focus
• Strategic Sourcing
• Vendor Management
• Operations
• S&OP
• SC Visibility
• Training and development plans
Margin Transformation Procurement System
• Process and tech focus
• Take (SC Visibility)
• Wand (3rd party labor)
• Aspera (Assets)
• Zycus
• Strategic Sourcing
• Vendor Management
• eProcurement
• Analytics
• P2P
• Executed plan
• Work Streams support
• Savings $ Multi MM,
FY16 - FY19
• Targeted help: 3rd party advisors
Procurement Excellence
➢ These 3 programs were the primary focus
➢ Balanced execution drive you towards procurement excellence
10. 10
Once procurement implements the right
operating model and systems, they no
longer need to focus on managing
stakeholder and business expectations.
True or False
11. 11
Roadblocks
• Rogue purchases
• Late to the game (last to know, IT may be second to last)
• “We” (IT, CTO, low-level developer) are the experts
• CEO says … (Substitute your favorite VP…)
• Slow procurement process
• Procurement staff are penny pinching SOBs
Real Needs
• Common strategies
• Common and understood approach
• Planning and more planning
Transformation Challenges
12. 12
• Don’t be an order taker
• Don’t hide your technical knowledge
• Take every opportunity
• Get invited – Staff meetings, vendor
visits, “drive by’s”
• Don’t be the “procurement
person” in the room
• Bring value
Build The Relationship
14. 14
• Asset Management (ITAM) / Services Management (ITSM)
• Software Rationalization
• Support models
• True ups and maintenance renewals
• Compliance
• Escalations
Find The Collaboration Points
15. 15
Procurement should always wait to hear
from the business about their strategies
and then adapt to their direction.
True or False
16. 16
Technology Investment Council
What is it?
• CIO / CPO Sponsored
• Shared strategies
• Shared savings plans
• Shared investment plans
Who attends?
• Procurement Category leads
• Senior IT leadership
• Product leadership / Finance
Create the Collaboration Points
Benefits
• Savings maximized
• Cost effective architecture
• Finance validated
17. 17
Procurement Can Drive the Conversation
ERP Cloud Database
Vendor
Leverage
Unified
Communication
18. 18
• Supply chain visibility systems
• Temp labor managed service
• Asset management tools
• Modern sourcing, procure to pay systems
• Analytics are your best friend
Investment Back into Procurement
19. 19
Results
• Cost savings
• Common technology and sourcing strategy
• Common vendor engagement
• Perception moved further than reality
Lessons Learned
• Hire tech savvy
• Reach across the aisle
• Speed and results comes from early involvement
Results / Lessons Learned
20. 20
• Procurement leaders are technology leaders
• AI, machine learning, digital transformation
may have a bigger impact on procurement
than any other function
• Relationship with CIO / CTO needs to be
strong
Parting Thoughts
22. 22
• SIG podcast: The Ideal Leader with Mike Morsch
• Transforming Fulfillment for Better Customer Outcomes
• Building Procurement Capabilities after a Corporate Spinoff
• Transforming the Dynamics between Procurement and Technology Leadership
Appendix
