Global Procurement COE Procurement Operations

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Presentation transcript:

Global Procurement COE Procurement Operations Transforming the Sourcing and Procurement Organization to a Global Category Management Model will Enable FMC to Drive out and Sustain Cost Reductions Global Sourcing and Procurement Organization Model 1 Procurement Council VPShared Services 1 Procurement Council - key functional and BU stakeholders who provide strategy and direction VP Global Services CIO VP HR Legal APG SCG ICG Procurement Leader 2 Global Procurement COE- provides center of excellence, process, tools and technology 2 3 4 Global Procurement COE Category Management Procurement Operations 3 Category Management – performs strategic sourcing and spend under management for centralized, centrally- coordinated, and decentralized categories System /Process Supplier Management Support Policies/ Procedures: Tracking and Measurement Contracting Process Other COE Centralized Categories Centrally- Coordinated Categories Decentralized Categories (embedded in businesses) Implement company-wide purchasing initiatives Regional Supplier Issue Resolution Compliance tracking Site procurement operations 4 Procurement Operations – oversee purchasing activities and compliance of site purchasing operations; resolve regional supplier issues; implement company-wide purchasing initiatives; perform site procurement operations

High-level Future State Organization Structure Global Procurement Leader Global Procurement COE Global Category Manager Regional Procurement Manager Manage Region Purchasing Activities Ensure compliance of negotiated contracts (e.g., packaging contracts with Cimplast) Resolve regional supplier issues Implement region-wide purchasing initiatives to facilitate purchasing activities Communicate regional requirements and escalate major supplier issues to Global Category Managers Provide oversight to the site operations, and communicate approved vendors, pricing and contracts requirements Procurement Support Conduct market analyses to support category management (e.g., packaging market in Brazil) Provide supplier management support Track and measure adherence to policies/ procedures Develop systems and tools and provide analyses and policy updates for the category and regional managers to support their sourcing and procurement activities Category Management Manage sourcing activities for category Develop and execute RFI/RFP’s for category Perform negotiations and contract development Maintain cross-BU, cross-regional perspective on spend Interface with Regional Procurement Manager to understand regional requirements and major supplier issues Perform as a key business partner to BUs (1 category manager per BU) Act as key sourcing and procurement contact for the business Understand and communicate changes that will impact the business (e.g., supply disruptions, cost fluctuations) Site Operations Execute Against Supplier Contracts Perform tactical purchasing activities Follow site purchasing processes to ensure compliance with global procurement initiatives Report any supplier related issues Global Positions Procurement Operations