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Www.procexcellenz.com Strategic Sourcing Consulting www.procexcellenz.com.

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Presentation on theme: "Www.procexcellenz.com Strategic Sourcing Consulting www.procexcellenz.com."— Presentation transcript:

1 www.procexcellenz.com Strategic Sourcing Consulting www.procexcellenz.com

2 02 Our Value Proposition Supply Base Transformation for our Clients by adopting a best-in- class Process approach Superior Value over the term at the right program cost Develop a Culture of 6 Sigma Process Discipline with TCO focus Execution and Governance of a multi-year Supply Base Transformation strategy Competency and Leadership development in Purchasing to deliver greater impact

3 www.procexcellenz.com 03 Our Firms Team capability Lead Consultant has a 13+ year career at Caterpillar Inc.s Asia office as a Certified 6 Sigma Master Black (Black Belt) Qualified Lean Black Belt & Champion Strategic Sourcing and Cost Reduction Consultant Consulted for Caterpillars Asia office and 30+ Strategic Supply partners over the last 8 years in Supply Chain total cost optimization initiatives Industries served are Manufacturing, Automotive, Logistics & Transportation, Heavy Industrials, Energy, etc. Industry Experts for special assignments on call, to deliver superior value and optimize client costs. Lead Consultant has a 13+ year career at Caterpillar Inc.s Asia office as a Certified 6 Sigma Master Black (Black Belt) Qualified Lean Black Belt & Champion Strategic Sourcing and Cost Reduction Consultant Consulted for Caterpillars Asia office and 30+ Strategic Supply partners over the last 8 years in Supply Chain total cost optimization initiatives Industries served are Manufacturing, Automotive, Logistics & Transportation, Heavy Industrials, Energy, etc. Industry Experts for special assignments on call, to deliver superior value and optimize client costs.

4 www.procexcellenz.com 04 Total Cost of Ownership is important Purchasing has largest potential for impacting Company costs Purchasing competency = Competitive advantage Evolving new realities Technology is a critical enabler A singular vision for Strategic Sourcing across the Enterprise Split focus – Strategic versus Tactical teams Supplier Collaboration & Management What we are hearing from the Market

5 www.procexcellenz.com 05 Purchased Goods/Services dominate Cost structure

6 www.procexcellenz.com 06 Strategic Sourcings bottom-line impact Impact of Strategic Sourcing initiatives

7 www.procexcellenz.com 07 Spend Characterization Supply Market analysis Strategy Development Supply Base re- shaping Cost Model development Negotiation APQP / PPAP Strategic Sourcing (every 3 to 5 years) Strategic Sourcing (every 3 to 5 years) Review Supplier performance Manage Supplier relationship Resolve conflicts Monitor Supplier marketplace Capacity planning Cost Reductions / Avoidances Ppm / Cpk / COPQ Supplier Management (every 3 months) Supplier Management (every 3 months) Volume forecasts Purchase Order placement and Scheduling External Logistics Manage Payables and Invoice grief Supplier Delivery performance Tactical Buying (every day / week) Tactical Buying (every day / week) Performance Feedback Voice of Business Strategic Sourcing vs. Tactical Buying - differences

8 www.procexcellenz.com 08 Strategic Sourcing is evolving Traditional Purchasing Strategic Sourcing Global Supply Management

9 www.procexcellenz.com 09 Our Strategic Sourcing Roadmap

10 www.procexcellenz.com 10 Deliverables of a Strategic Sourcing project

11 www.procexcellenz.com 11 Strategic Sourcing benefits - Examples US Postal Service Maintenance & Repair (MRO) 1,000 suppliers down to 2 suppliers Savings of more than $250M Walmart Reduced 500,000 suppliers to 50,000 $17.8B in cost savings over 5 years 95% of spend is with 16,600 suppliers Raytheon Had 27,000 to 45,000 suppliers (estimated) Goal was to reduce by 20% each year Continues to meet supplier diversity goals, even with supplier consolidation Companies doing Strategic Sourcing have seen returns between 20x to 1000x+ on their investments over 3 to 5 years

12 www.procexcellenz.com Strategic Sourcing Training

13 www.procexcellenz.com 13 Training Programs - Index ProgramTarget Candidates No. of days 6 Sigma Strategic Sourcing (6SSS Methodology) Training Black Belts + Purchasing Professionals 3 days APQP and PPAP TrainingPurchasing + Manufacturing + Design Professionals 2 days Total Cost of Ownership TrainingPurchasing Professionals 1 day

14 www.procexcellenz.com 14 Training Delivery Suite of Options Primary Option (7+ Belts preferred per Session of Training) Secondary / Low Cost Options (1+ to 5+ Belts preferred per Session of Training ) Tertiary / Mandatory provisions

15 www.procexcellenz.com 15 6 Sigma Strategic Sourcing (6SSS) Training Understand changing Customer and Business needs Study Category and Supply Market conditions Tap Low Hanging fruits Define Develop Supplier Evaluation Criteria Identify List of Suppliers through RFI issuance Develop Technical Plan and Cost Models Measure Tri-analysis - Market, Supplier, Category Issue RFPs and obtain RFQs Select best Supplier / Supply Chain options Analyze Negotiate Agreements & develop Supplier Performance Metrics Develop an MGPP for Sourcing Change Develop a Sourcing Matrix Develop an Implementation Plan Improve Review and Manage compliance to SP metrics Execute the Implementation Plan Drive Continuous Improvement to bridge SP gaps Control With our Comprehensive Training Program the Candidates will be able to : Understand the need for change based on Customer, Business, Economic, Commodity concerns etc. Lead multi-disciplinary Teams to reshape the Supply Base base Develop Cost Models and Metrics to manage Suppliers Feel empowered based on facts and data to make changes based on changing face of the market Influence the leaders of support functions needed for project completion

16 www.procexcellenz.com 16 APQP / PPAP Training Advanced Product Quality Planning, APQP, is a structured method of defining and establishing steps and expectations necessary to assure that a product satisfies the customer. The goals of APQP are two-fold : Proactively manage technical risk as products or manufacturing processes are designed or modified Drive collaboration between design and supply chain partners (both internal and external) at the appropriate times Production Part Approval Process, PPAP, consists of two primary elements : Demonstration of APQP or proof of risk mitigation of a design and / or process in support of program objectives This demonstration of proof provides confidence that the requirements and specifications of a product prior to shipment are met Documentation to support the demonstration of product and process conformance to requirements and specifications This documentation details the initial quality level the supply chain has achieved

17 www.procexcellenz.com 17 Total Cost Optimization (TCO) Training

18 www.procexcellenz.com 18 Procexcellenz is a premier provider of multi-channel Consulting and Training Solutions for seekers of 6 Sigma, Lean, Stategic Sourcing, Cost Management and Strategy Planning services. E-Mail: info@procexcellenz.com, procexcel@gmail.com Phone : +91-44-27665665 / Mobile : +91-9677754111


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