Creating Opportunities and Leveraging World Class Tools to build effective synergies

1. International Procurement Strategies:
challenges and opportunities
Webinar
3/14/2019
David Millington, M.Sc.QSM, NPDP, CL6σBB, SPP℠, SPSM3®, CM®
Director of Education

2. Scope of Webinar?
Unlocking Key Strategies and Leveraging Strategic Framework
 Challenges and Leveraging Change Management
Creating Opportunities and Leveraging World Class Tools to build
effective synergies

3. Why do businesses exist?
Value has three components:
There is a conversion or transformation of materials from one stage to the
next
All associated activities are done right the first time
Customers are willing to pay for the output or resulting products and
services

4. The Global Context of Supply Chains and Procurement
Socio-demographic
 Ecological
 Economic
 Technological
 Political
 Industry
 Competitive
The SPSM, SPSM2, and SPSM3 programs are designed to enable procurement
professionals to effectively and efficiently manage the Procurement Functions
proactively, relative to these environmental and business landscape pressures.

5. The purpose of the Procurement Function
Manage Spend
Support Operations
Protect Organizations from Risks

6. The Systemic View of International Procurement
Suppliers reliable, responsive, capable, aligned to strategic objectives
Inputs right price points, quality, all the time
Process on time, right quantities, cost of executing procurement work
Outputs meets customer requirements, great innovative products
Total Cost of Ownership

7. Strategy #1 Leverage End to End Synergy.
This requires Business Process Improvement and Optimization
Clearly define supply chain problems
Measure the degree of non-conformance to business and customer
requirements
Determine root causes of non-conformance
Design cost effective solutions to close performance gaps

8. Strategy #2 Preserve and care about the Ecology and
Landscape that provide raw material inputs
Procurement professionals must understand that there is a dramatic
increase in demand for eco-friendly products and services
 Strategies must be put in place to focus on doing business solely
with eco-friendly suppliers who will facilitate this critical customer
requirement
 Buying organizations should stay abreast of developments related to
climate change, global warming, and eco-friendly consciousness.

9. Strategy #3 Improve the lives of people in the
international communities we purchase from
Many progressive companies provide educational, healthcare, and other
social benefit programs to the international communities that provide raw
material inputs they purchase.
The key is sincerity!

10. Strategy #4 Leverage Common Interest into a solid
Integrated Strategic Master Plan.
Intense collaboration, information sharing, and innovation.
Draft up a master document that draws on the basic strategic needs
and requirements of all suppliers, customers, and buying organizations.
The goal is to negotiate a synergistic strategic plan that maximizes
benefit to all key stakeholders.
The traditional procurement methods of beating up suppliers and
focusing solely on price are losing ground.
The key is to strengthen the entire supply chain by focusing on
common interests and focusing on the collective needs,
requirements, and interest of all key stakeholder groups.

11. Strategy #5 Leverage of Sophisticated Modern
Technology.
Artificial Intelligence, Blockchain, and other Digital Procurement
Technologies can be leveraged to optimize procurement and supply chain
processes.
These initiatives can enhance the realization of point #1 of Leveraging
“End to End Synergy”.
These technologies greatly improve, transactional accuracy, visibility,
error proofing, speed, and reduce the Total Cost of Ownership.
Process Mapping, Value Stream Mapping, SIPOC Mapping, Root Cause
Analysis, 80/20 and 4/50 Analysis, Input and Process Variable Analysis,
Spend Analysis, Supplier Selection Analysis, Integrated Strategic Buying
Plans, and Cost Savings Targets can be leveraged prior to technology
deployment.

12. Putting the Strategies together:

13. https://www.nextlevelpurchasing.com/news/purchasing-articles/critical-keys-unlocking-warehouse-potential