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Semelhante a Supply Chain Transformation - What You Need to Succeed - Susan Lasecki-Corio, Head of Strategy Performance, Group Supply Chain at Anglo American
Semelhante a Supply Chain Transformation - What You Need to Succeed - Susan Lasecki-Corio, Head of Strategy Performance, Group Supply Chain at Anglo American (20)
2. Who We Are at a Glance
• One of the world’s largest mining companies
• Focused on the following commodities:
• Platinum – Iron ore
• Diamonds – Metallurgical coal
• Copper – Thermal coal
• Nickel
• Employees: 107,000
• Market cap. (LSE): ~$68.3bn
• Performance 2011
• EBITDA $13.3bn
• Operating profit $11.1bn
• Underlying earnings $6.1bn
3. Topics for Today
I Supply Chain transformation
II What you need to succeed
III Where to next
IV Local supplier: La Fancy Kay
4. I. Supply Chain Transformation
Anglo American Metals & Mining Industry Masters in Procurement Mining Peer Best in Class
100% 94% 93%
90%
83% 84%
87% 89%
86%
83% 81%
75% 69%
64% 64% 64%
59%
56%
53%
Score
50% 53% 54%
46% 48%
43%
38%
25%
0%
Procurement Sourcing & Category Requisition Supplier Relationship Workforce & Technology
Strategy Management to Pay Management Organisation
Source: Accenture analysis (2008)
5. I. Supply Chain Transformation
• Vision: becoming the industry leader and global
benchmark for supply chain value creation
• Target: create $1 billion of additional value by 2011
• Plan:
• Deploy new operating model and deliver value through category
management and strategic sourcing
• Develop and apply consistent processes, governance and
performance management framework
• Improve capability through better teamwork and individual
competencies
6. I. Supply Chain Transformation
From To
BU Supply Chains 2008 2009 2010 2011 an integrated
New operating model Supply Chain
Platinum
1 Organisation change
Diamonds
Copper $1bn of value
Nickel Strategic category management by end 2011
Iron Ore & Wave 1
Manganese 2 Wave 2 Become
Metallurgical Wave 3 industry
Coal leader and
Wave 4
Thermal Coal global
Other Mining Processes and systems benchmark for
and Industrial
3 supply chain
Define Enablers Implement Enablers
value creation
4 Capability development and Change management
7. II. What You Need to Succeed
New Operating Model
2008: Decentralised Procurement 2011: Centre-Led Team
Group
Group
Group
Group SC
SC Strategic Category
Management BU Supply
Chain
Platinum
Platinum
Projects & Services
Projects & Services
Met. Coal
Met. Coal
Thermal Coal
Thermal Coal
Mining Production
Mining Production
Platinum
Platinum Coal
Coal Ferrous &
Ferrous & Base
Base Nickel
Nickel
Industries
Industries Metals
Metals Copper
Copper
Processing &
transportation
Kumba II O
Proc. Proc. Proc. Proc. Kumba O
Support services IIO Brazil
O Brazil
Support services
& equipment
O M & II
OM&
Governance
Strategic Category Boards Financial Policy Benefits Measurement Tool
AA PLC ExCo
Business
General Management sub-Committee
1 Opportunity Idea Initiative 2 Approved Project 3 as Usual 4
Strategic
Log initiative in Achieve approval f or plan Update and approve implementation Track delivered
Category
Strategic SCB 2
Strategic SCB 3
Strategic SCB 4 BM Tool benef its
Commodity
Board (SCB) 1 Commodity Commodity
Board Board Board
Spend Area 1
Projects & Spend Area 2
Mining Processing & 2
Spend Area Support
Services Production Transport Services & Equip
Cross-Functional Group Category Teams
Crushing - Temporary -
BU Services Fuels & Lubes
Mining Supply BU Supply BU Supply Personnel
Chain Council Chain Council
EPCM Tyres Chain Council
& Grinding IM
Base
Structural Steel Coal
HME KIO
Conveyors Electricity
8. II. What You Need to Succeed
Strategic Category Management
Category Planning
Analysis Recommendations
HIGH LEVEL SPEND MARKET INTERNAL INTERNAL & STRATEGIC OPTION HIGH LEVEL
SUPPLY & DEMAND
PROFILING & COST MODELING POSITION FUTURE TECHNICAL ASSESSMENT AND CATEGORY IMPLEMENTATION
MARKET DYNAMICS
SEGMENTATION ASSESSMENT REQUIREMENTS ASSESSMENT STRATEGY PLAN
Strategic Sourcing
Data Collection & Analysis Opportunity Development & Negotiation Implementation
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7
Identify Develop Category Develop Identify Selection Conduct Develop &
Opportunities Value Creation Factors & Screen RFP / Negotiate Implementation
Profile
Strategy Suppliers Auction Agreements
Sources of Value
TCO Arbitrage Low Cost Country Sourcing
Mine level
Activity level (eg, load & haul)
Equipment level (eg, truck)
New equipment
Hardware ($/hr)
Total life-cycle Components
cost ($/hr) + ($/hr)
Energy Parts
Total operating Fuels, electricity ($/hr)
+
cost ($/hr) ($/hr)
Tyres
Fixed costs ($/hr)
Labour and
overheads ($/hr)
Unit cost ($/Ton) ÷
Engineering Installed
Throughput Utilization
= x availability x capacity
(Tons/hr) (%)
(%) (Tons/hr)
9. II. What You Need to Succeed
Process and Systems
Collaborative procurement
Spend Analysis
Master Data Management
1 Sourcing & Contracts
Strategic Sourcing Contracts Management
ERP’s (SAP + Ellipse)
2 Spend Analysis
Spot Order Goods Service Invoice Remittance
Order
RFQ Status Receipt Confirm Response Advice
3 Master Data Mgmt.
Source
4 Requisition to Pay Centre
5 E-catalogues Ariba Network + Catalog
6 Spot Sourcing
Order Advance
Order Service Suppliers
Quote Status Ship Invoice Suppliers
Response Entry
Response Notice
10. II. What You Need to Succeed
Capability Development
Capability Accelerator Action Learning Cycle
L=P+Q
• Learning
• Programmatic Knowledge
• Insightful Questioning
Change Management
Communications & Feedback
Engagement Loops Facilitation
12. III. Where to Next
Local Procurement
Local Procurement policy
COORDINATE
has driven integration WITH
LOCAL PROCUREMENT
INITIATIVES
between Supply
Chain, business units and Key enablers: Policy, Ring-fencing
Enterprise
functions Development Contract Terms, KPIs, Relevant Categories
Definitions, Reporting of Spend
Initiatives are improving: Social Investment
Local Supplier Country Strategies
Programmes
Development for Local
• Community relations Micro-credit Programmes Procurement
Initiatives
• Project approval times Integrating Local and
Stakeholder Supplier Parks
China sourcing
• Competitive advantage engagement
In 2008 as part of the One Anglo initiative, we identified a significant improvement opportunity through the transformation of our Procurement and Supply Chain operations globally. At the time our Supply Chain operating model was decentralised and not taking full advantage of the group’s scale and purchasing power. An effective and efficient Supply Chain organisation is a key source of value so best practice, performance benchmarks and other mining houses were analysed to develop the optimum model transition roadmap for Anglo American. When we compared ourselves against Mining industry peers and procurement best in class benchmarks, the major areas of opportunity were in strategic sourcing and category management, and supplier relationship management. From this analysis the business case for implementing an approach to category management was developed in order to achieve $1 billion of improved value by 2011. This is equivalent to just over 10 percent of our annual spend or 3.5 percent each year for three years. This spend was split into four category groups Projects & Services ($2.7B), Mining Production ($4.7B), Processing and Transport ($2.6B)and Support Services and Equipment ($1.4B) based on 2009 estimated spend of $10.9B. A vision was also set for Anglo American Supply Chain “To be industry leader and global benchmark for Supply Chain value creation”.
In 2008 as part of the One Anglo initiative, we identified a significant improvement opportunity through the transformation of our Procurement and Supply Chain operations globally. At the time our Supply Chain operating model was decentralised and not taking full advantage of the group’s scale and purchasing power. An effective and efficient Supply Chain organisation is a key source of value so best practice, performance benchmarks and other mining houses were analysed to develop the optimum model transition roadmap for Anglo American. When we compared ourselves against Mining industry peers and procurement best in class benchmarks, the major areas of opportunity were in strategic sourcing and category management, and supplier relationship management. From this analysis the business case for implementing an approach to category management was developed in order to achieve $1 billion of improved value by 2011. This is equivalent to just over 10 percent of our annual spend or 3.5 percent each year for three years. This spend was split into four category groups Projects & Services ($2.7B), Mining Production ($4.7B), Processing and Transport ($2.6B)and Support Services and Equipment ($1.4B) based on 2009 estimated spend of $10.9B. A vision was also set for Anglo American Supply Chain “To be industry leader and global benchmark for Supply Chain value creation”.
Arrow on date showing continued transformation
Mention we won Award from Proc leaders – for cap acc