Profit from procurement : how to add 30% to your bottom line by breaking down silos / Alex Klein, Simon Whatson, Jose Oliveira.

Format:

Book

Author/Creator:

Whatson, Simon, author.

Oliveira, Jose, author.

Language:

English

Subjects (All):

Industrial procurement.

Physical Description:

1 online resource (236 pages)

Place of Publication:

Hoboken, N.J.: Wiley, c2021.

Hoboken, New Jersey : Wiley, [2021]

Summary:

"Procurement represents 50% of a business's costs. But traditional procurement processes are broken and ill-equipped to take advantage of the potential savings, and procurement teams aren't traditionally seen as integral to business success. Now that COVID has put a spotlight on the instability of existing procurement and supply chain practices, and cost-reduction is a key initiative for everyone right now, there is a window to remake procurement's role in the business. By rebuilding procurement teams to be cross-functional and integrating them earlier into every business process, businesses can halve costs while increasing supply chain resiliency. Reinventing Procurement gives the playbook for CEOs, COOs, CFOs, and CPOs to make their procurement teams a less siloed, more integral part of daily business--including how to plan the transformation, reskill the team, navigate change management, and ensure the impact on the bottom line"-- Provided by publisher.

Contents:

Cover

Title Page

Copyright

Contents

Chapter 1: INTRODUCTION: Why Procurement, and Why Now?

What Follows Is a True Story

Procurement Is a Company's Number One Cost, Making It a Huge Profit Lever

Why Is Procurement Not Optimized?

Remit

Mindset

Vicious Cycle...and Opportunity

The Birth of Strategic Sourcing-Dawn of a New Era...or Not?

Bad Best Practice

Why Now?

About This Book

Chapter 2: AMBITION: Ensuring You Are Set Up for Success

A Dirty Procurement Word

Walk, Then Run

What to Aim For

The function with no standing

The function with traction

The mature function

Getting Buy‐In

Achieving Your Ambition: Customer Focus

Chapter 3: SOURCING EXECUTION: Making Sure That the Engine Room Delivers

Building the Baseline / "Profiling the Category"

Conducting a Supply Market Analysis

Drawing Up the Sourcing Strategy

Executing an RFP Event

Conducting Supplier Negotiations and Selection

Sourcing Tools

Savings Credibility

Sourcing Gates

Time with Stakeholders

Program Management

Execution

After the Storm

Sourcing Is the Engine Room

Chapter 4: PEOPLE: Building a Winning Procurement Team

Who Do We Need in Procurement?

The CPO

Today's Old School Procurement Skillset

Tomorrow's Procurement Team

Define success and align incentives

Build a team of diverse skills

Ensure the team is versatile

Focus on execution

Attraction and Retention of Talent

Being Bold When Hiring

Chapter 5: OPERATING MODEL: Making It Work in Practice

Documenting the Future Model

The Center‐Led Approach

The foundational layer

The category layer

Shifting from Reactive to Proactive

Organic Growth to a Proactive Focus

Step 1: Visibility of work

Step 2: Start prioritizing

Step 3: Build and maintain a hopper of opportunities.

Isn't This Just Agile?

Chapter 6: CROSS‐FUNCTIONAL CHANGE: Repositioning the Function as a True Partner

Why Is Cross‐Functional Change Management Important?

Procurement Often Lacks the Required Skills and Mindset

How Do We Do It Effectively?

1) You need to execute well and have good deliverables

2) You need to engage formally and meaningfully at all levels

3) You need to use effective stakeholder engagement skills

4) You need to exhibit a service mindset

5) You need to position yourself internally as a proactive dealmaker

6) You need to share credit, and help rather than take away

7) You need air cover

Specific Functions

What Can We Learn from the Consultants?

Conclusion

Chapter 7: SUPPLIERS: Engaging Effectively

Supplier Management-The Traditional Approach

The Strategic Supplier-a Competitive Advantage

Shifting the Mindset

Beware the RFP

Chapter 8: NON‐SAVINGS PRIORITIES: Balancing Your Objectives

Is There More to Procurement than Savings?

Consult the Business First

The Procurement Balanced Scorecard

Sustainability

Supply chain risk and resilience

Customer service levels and accessing innovation

Social sustainability

Environmental sustainability

Financial sustainability

Get the Right Sustainability Key Performance Indicators

Embarking on Your Sustainability Program

Chapter 9: SAVINGS REALIZATION: Stemming the Leaks

What Is a Saving?

The Importance of Data and Baselining

Savings Need to Be Delivered Before They Can Be Measured

The CFO Needs to Be Procurement's Best Friend

TINCSIBR

It's All About Compliance

Effective Budgeting

Savings Leakage Points

Key Steps to Stem the Leakage

Chapter 10: TECHNOLOGY: Investing in and Adopting the Right Tools

A Procurement Revolution That Hasn't Happened.

The Steam Powered Tesla

Technology's Promise to Procurement

Investing in Technology-the Fundamentals

Own your data and don't over‐configure!

Visualize your data

Manage your knowledge

Technological Disruption Is Coming!

Chapter 11: CONSULTANTS: Using Consultants in Procurement

Why Use Consultants?

How to Select the Right Consulting Partner

How Should I Best Use the Consultants?

How Do I Make Sure That I Get the Best Value from My Consultants?

It's All About the People

Weaning Yourself Off the Drug

What Do We Do When It All Goes Horribly Wrong...or How to Avoid That Happening

Chapter 12: PRIVATE EQUITY: Learning Lessons from PE

Private Equity and Procurement

Changing Attitudes

So Why Are Procurement and PE Such a Good Match?

1) PE is all about value creation and EBITDA, a great fit with Procurement

2) PE "gets" the Procurement opportunity and creates a platform to deliver the potential

3) PE helps with speed and rigor of execution

4) Joint ownership creates the right incentives and behaviors

5) PE elevates Procurement to Executive Committee level, which facilitates cross‐functionality

6) Leading PE funds drive Procurement as a structured program across their portfolios

What Can Non‐PE Learn from PE?

Chapter 13: ROADMAP: Making a Concrete and Realistic Plan

Transforming by Doing

Putting the Plan Together

Start by Talking to People...or Even Listening to People!

1) Procurement ambition and role

2) Functional improvement plan

3) Sourcing savings execution plan

4) Procurement investment business case

5) Program structure and governance

Putting It All Together

Getting It Bought Off

Concluding Thoughts

Chapter 14: CONCLUSION: Summary and Final Thoughts

Procurement Is Not Rocket Science, but It's Difficult to Do It Right.

1) Procurement represents a huge untapped opportunity

2) You need to have a strong team that's appropriately organized

3) You have to drive a sourcing program and execute it well

4) Savings credibility is vital

without it, you will fail

5) Stakeholder buy‐in and cross‐functional working is everything

6) You have to learn to walk before you can run

7) Technology is not the answer-it's only an enabler, and must be used judiciously

Breaking Down Silos

Acknowledgments

About the Authors

List of Acronyms

Index

EULA.

Notes:

Includes index

Description based on print version record.

ISBN:

9781119784982

1119784980

9781119784913

1119784913

OCLC:

1243535144