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Emmanuel Bernoux, CPO at Agfa spoke at the CPO Event March 2014
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CPO-CFO Alliance
@ Agfa
Emmanuel Bernoux
Chief Purchasing Officer
March 20-21, 2014
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Executive Summary
At Agfa, the CPO-CFO partnership emcompasses a increasing range of strategic and tactical areas, ranging from financial planning, to profitability and value support including risk management.
This takes place in a fundamental change of internal and external factors.
With one common objective : long term business sustainibility.
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Contents1. Agfa Introduction
2. CPO-CFO Goal Congruence
• The example of the Agfa Graphics Business Group.
3. Financial Management
1. Planning & Budget
2. Cost
3. Cash
4. Risk Management
1. Materials and supplier markets in the short-mid term
2. Suppliers and supplier markets in the long term
5. Make it work :
1. Commonly defined objectives
2. Necessary Governance and working together in teams
Agfa
An Introduction
Emmanuel Bernoux
Chief Purchasing Officer
March 20-21, 2014
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Introduction
What you have in mind
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Introduction
What it is
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FY'12 FY'13 Δ % (excl. X-rate)
Sales 3.091 2.865 -7.3%(-4.8%)Gross Profit* 870 833 -4,3% as a % of sales 28,1% 29,1%
SG&A* -573 -538 -6,1% SG&A as % of sales 18,5% 18,8%
R&D* -163 -146 -10,4%Other operating items* 6 -5Recurring EBITDA* 225 224 -0,4% as a % of sales 7,3% 7,8%
Recurring EBIT* 139 144 3,6% as a % of sales 4,5% 5,0%
Profit & Loss: Key Figures (in million Euro)
* Before restructuring charges and non-recurring items
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Agfa Group: Sales
Specialty Products8%
Graphics52%
HealthCare40%
Split per Business Group (YTD) By Region (YTD)
Europe40%
NAFTA25%
Latin America9%
Asia and ROW26%
Two strong business groups and a smaller niche business
Small half of sales in Europe; strong presence in North America and Asia (excl. Japan)
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Flexo plates
Pages
Images
Proofing
Offset press
Film setter FilmAnalog plates
Computer-to-Film
Plate setter Digital platesThermal, Polymer & Silver
Computer-to-Plate
Digital Inkjet Print
Ink
Flexo CTP
Screen pressScreen exposure frame Screen
Industrial Inkjet Printing
Flexo
PrintingFlexo press
PC
Agfa Graphics: Product Portfolio
Screen Printing
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Administration
Resource Management
Logistics
Catering
Accounting
Billing
Planning
Examining
Diagnosing
Treating
Reporting
The HealthCare Community
Referring Physicians
Assisted Living
Home Care
Pharmacists
Payors
Electronic Patient
Record
Intensive
Care
Emergency
RoomNursing
Surgery
LaboratoryCardiology
Intensive
Care
Radiology
HealthCare: IT Solution Portfolio
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Conventional
Radiography
Radiology - Product Portfolio
Conventional X-ray Film
X-ray Film
Processor
Hardcopy
Softcopy
DR
Scanners
CT
MRI
US
NM
PET
X-ray Table
DR-GenRad
CR
PACS
Dry Film
Reusable
Phosphor plate
CR Digitizer NX workstation
Dry Imager
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Specialty Products: Product Portfolio
Classic Film
Functional Foils
Advanced Coatings and Chemicals
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Supplier Financial Content @ Agfa
2,900 MEUR
1,900 KEUR 1,800 MEUR 62%
1,900 KEUR 1,150 MEUR 64%
650 MEUR 36%
Revenue
Total Spend
Non Metals
Metals
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Supplier Content by Spend Categories
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Agfa Purchasing as Global Shared Service Organization
Internal Customers
Supplier Spend K€
Revenue K€
Agfa Graphics 832 1,491Agfa HealthCare
416 1,160
Agfa Materials 536 214TOTAL 1,784 2,865
Strategic Metals has global responsibility
for the purchase of the strategic metals,
Silver and Aluminum
Global Category Management is
responsible for the Quality Cost Delivery
performance of the supplier base for all
Agfa entities globally.
Regional Purchasing
- the deployment of global category
strategies
- and for the Quality Cost Delivery
performance of the supplier base
regionally.
They support the globalization of Agfa
and of its supplier base.
- The organization covers all categories,
Business Groups and GSS Purchasing
needs in the region.- There are 4 regions : Europe, North
America, LATAM and ASPAC.
Advanced Purchasing is responsible
for the Quality Cost Delivery
performance of suppliers in
Solutions Development (New
Product Development) cycles
Purchasing Process Office is
focused on defining, building and
implementing the necessary
standards, business processes,
business tools of the end-to-end
Purchasing process.
Legal and Controlling both support
Agfa Purchasing in legal and
financial monitoring fields.
CPO-CFO Goal Congruence
The example with the Agfa Graphics Business Group.
Emmanuel Bernoux
Chief Purchasing Officer
March 20-21, 2014
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CPO-CFO Goal Congruence The example with the Agfa Graphics Business Group.
Agfa Graphics
• EBIT• COGS• Price Management & Structural Erosion• SG&A• Working Capital• Predictiblity• Business Continuity• Manufacturing footprint financial
efficiency• Distribution Channels Performance• Value Chain Optimization• Revenue Life Cycle and new Businesses
Agfa Purchasing
• Spend Efficiency• Payables• Financial Risk
Management• Strategic Category
Management• Key Supplier Relationship
Management• Advanced Purchasing
Financial Management
Risk Management
Make it work
Financial ManagementPlanning & Budget
CostCash
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Planning, Budget and Cost
Increase performance via
partnership, transparency and focus.
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Cash
Long term improvement stratgy supported by short term hands on approach
Risk ManagementMaterials and supplier markets in the
short-mid termSuppliers and supplier markets in the
long term
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Short Term
Financial Risk Raw Materials Price erosion distorsion Suppliers Financial Health
Supply Continuity Manufacturing Efficiency
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Mid & Long Term
Supplier Organic Risk KSRM
Supplier Market Risk Supplier markets’
expertise Technology Consolidation in mature
markets Versatility of Commodities
Metals Petrochemicals
Micro and Macro Financial risk Metals’ markets
financiarization Suppliers’ Financial Health
Make it work Commonly defined objectives
Necessary Governance and working together in teams
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Objectives & Governance
• Objectives and Targets are algined
with Business cycles
• Along annual budget and 5 year
plan
• Governance is aligned along
purchasing categories and steered
in common
• Teamwork is instrumental to
succes
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Questions
Thank You