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www.procexcellenz.com
Strategic Sourcing Consulting
www.procexcellenz.com
www.procexcellenz.com
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Our Value Proposition
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Our Firm’s 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 Caterpillar’s 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.
www.procexcellenz.com
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Total Cost of
Ownership is important
Purchasing has largest potential
for impacting Company costs
Purchasing competency = Competitive advantage
Evolving new realities
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
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Purchased Goods/Services dominate Cost structure
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Strategic Sourcing’s bottom-line impact
Impact of Strategic Sourcinginitiatives
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• Spend Characterization
• Supply Market analysis
• Strategy Development
• Supply Base re-shaping
• Cost Model development
• Negotiation• APQP / PPAP
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)
• Volume forecasts
• Purchase Order placement and Scheduling
• External Logistics
• Manage Payables and Invoice grief
• Supplier Delivery performance
Tactical Buying(every day / week)
Performance Feedback
Voice of Business
Strategic Sourcing vs. Tactical Buying - differences
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Strategic Sourcing is evolving
TraditionalPurchasing
StrategicSourcing
Global SupplyManagement
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Our Strategic Sourcing Roadmap
As-isSupply Base
Supplier Exit list
New Suppliers injected
StrategicSourcing
- Commodityspecific- Robust 6 Sigma DMAIC approach- Long term outlook
Strategic Alliances
Emerging Suppliers
Keep-in-the-list Suppliers
Supply Base Challenges / VOB
- Rising Costs- Poor Quality focus- Low Supply Response Time- Poor Availability- Lack of Capacity- Process incapability- Lack of technology- Financial / Non-Financial Risks- Poor Wavelength- Weak Management Team - Other Business Risks- Economic uncertainty
Comprehensive and Detailed
Sourcing Strategy (3 to 5 year outlook)
To-be Supply Base
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Deliverables of a Strategic Sourcing project
Reduce Total Cost of Ownership (address VOB) while improving levels of Quality, Availability and
Service
Improve purchasing related sub-processes to eliminate
sources of variability
Develop a Sourcing Road-map to support the Business of the
future
Objectives
Goal
Objectives Deliverables
3 to 5 Year (or) Multi-phased Strategy
Technology Evolution path / Supply Chain Risk Mitigation
Plan
Supply Base migration Plan (Current => Future state)
• World-class / Best-in-class Supply Base
• Competitive Supply Chain
• Improved Quality, Cost, Availability, Service & Tech Support, Business Wavelength
• Company’s buying power effectively leveraged to reduce Total Costs
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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
www.procexcellenz.com
Strategic Sourcing Training
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Training Programs - Index
Program Target Candidates
No. of days
6 Sigma Strategic Sourcing (6SSS Methodology) Training
Black Belts + Purchasing Professionals
3 days
APQP and PPAP Training Purchasing + Manufacturing + Design Professionals
2 days
Total Cost of Ownership Training Purchasing Professionals
1 day
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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
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6 Sigma Strategic Sourcing (6SSS) Training
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
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
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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 modifiedDrive 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
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Total Cost Optimization (TCO) Training
Piece Price
PackagingTransportationWarehousing
RepackingHandling
Quality
Logistics
Development
Management
Total Costof Acquisition
Calculated –
Obvious
Supplier Performance
Estimated – Not
Obvious
Total Cost of Ownership
Research &Development
Pre-Transaction
Transaction
Post-Transaction
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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: [email protected], [email protected]
Phone : +91-44-27665665 / Mobile : +91-9677754111