Benoit Constanty Jean-Louis Moreau Experienced Chief Procurement Officer Co-Founder of TPN & Market Development Director At Sourcing Force HOST GUEST… [603199]

10 STEPS FOR
PROCUREMENT STRATEGY
DEVELOPMENT
WEBINAR

Benoit Constanty Jean-Louis Moreau
Experienced
Chief Procurement Officer Co-Founder of TPN &
Market Development Director
At Sourcing Force
HOST GUEST
25 Years of experience

-Global executive with multi-sectorial
experience in Procurement, Operational
efficiency and Performance improvement.
-Successful in transforming global
organizations with experience in change
management and digital transformation.
-Trusted advisor with a strong ability to
provide skilled and practical guidance at
C-level.
Spend Management Solution


•Spend Analytics
•Purchase Order management
•Approval Workflow
•Procurement Outsourcing
•Risk management
•e-Catalogs
•Supplier Management
VeoliaFormerly CPO at:

AGENDA
10 STEPS FOR PROCUREMENT
STRATEGY DEVELOPMENTINTRODUCTION
Q&A
CONCLUSION

STEP 1
Spend Analysis

1
SPEND ANALYSIS
How do we spend?

1 SPEND ANALYSIS
Basic toolbox
Two steps:
✦ Spend discovery. A prerequisite being an adequate Procurement classification/
categorization system.
✦ Spend analysis to prioritize actions and manage risks adequately.
Available tools:
✦ Procurement Catalog
✦ Account payables – Pcards – Vendor reports
✦ Four-level Category arborescence system (Classification)
✦ Kraljic Matrix – Constraint Analysis Matrix – ATK ChessboardHow do we spend?

STEP 2
Maturity assessment

2 MATURITY ASSESSMENT
360° evaluation of the
Procurement function to generate
roadmaps towards excellence.
Key enablers / Value adding processes / Strategic direction

• 8 dimensions maturity matrix
• Self-assessment framework
• Procurement excellence roadmaps360° evaluation of the
Procurement function to generate
roadmaps towards excellence.2 MATURITY ASSESSMENT
Basic toolboxKey enablers / Value adding processes / Strategic direction

STEP 3
Opportunities and Project
pipeline

3 OPPORTUNITIES AND PROJECT PIPELINE
Category excellence. Generate a pipeline of
potential procurement projects covering more
than one budget exercise, with action plans and
expected impact on EBIT.

•Buy Less, Buy Better, Buy Cheaper
methodology – Sourcing value
Lifecycle
•Strategic Sourcing methodology –
Strategic Sourcing Guidelines
•Advanced cost models –
Parametric cost estimate
•Target cost iteration matrix •Tear-down analysis – VA/VE
workshops – SCAMPER – Kaizen
Principles
•Stage-gate sourcing process –
Strategic Sourcing Plans per category
•Interactive Project Pipeline – Zero-
based budgeting
3 OPPORTUNITIES AND PROJECT PIPELINE
Available tools:Category excellence. Generate a pipeline of
potential procurement projects covering more
than one budget exercise, with action plans and
expected impact on EBIT.

STEP 4
Organizational Alignement

Center-led hybrid organization adaptable and
scalable to provide local support to Operations
and Projects while achieving the necessary
transverse coordination on categories.4 ORGANIZATIONAL ALIGNMENT

• 3P Organization Guidelines
• Value Mapping
• Procurement Request Generation Mapping
• Operating Model Design guidelines
• One-page RACI
• DREAM methodology
• Internal SLA's4 ORGANIZATIONAL ALIGNMENT
Basic toolboxCenter-led hybrid organization adaptable and
scalable to provide local support to Operations
and Projects while achieving the necessary
transverse coordination on categories.

STEP 5
Human Capital Evaluation
and Training

Team excellence. Ensure the necessary
competencies are available at the appropriate
level for each career path in Procurement. 5 HUMAN CAPITAL EVALUATION AND TRAINING

• Job descriptions
• Competency Matrices
• Career Ladder with bridges to other functions
• Personal assessment guidelines
• Training Plans – Ad hoc Training Material
• Hiring plans – Rotation plans – Succession plans5 HUMAN CAPITAL EVALUATION AND TRAINING
Tools available Team excellence. Ensure the necessary
competencies are available at the appropriate
level for each career path in Procurement.

STEP 6
Supplier Strategy

6 SUPPLIER STRATEGY
Supplier excellence. What supply base is most
appropriate and how the company will interact
with its suppliers through a well-defined SRE? Set
clear expectations on quality, cost, delivery and
innovation.

6 SUPPLIER STRATEGY
Basic toolbox
•Supply base Mapping –
Supplier typology Analysis
•Supplier Positioning Matrix –
Supplier "Preferencing" Matrix
•SRE Guidelines – SMO –
Supplier Classification –
Supplier Status
•Traffic Light Model •Supplier Assessment Framework –
Supplier Audit Matrix
•Set of standard documents (RFx,
Contracts, …)
•Contract review reports – Supplier
Dashboard QCDI
•Supplier Development plans –
PDCA – TPSSupplier excellence. What supply base is most
appropriate and how the company will interact
with its suppliers through a well-defined SRE? Set
clear expectations on quality, cost, delivery and
innovation.

STEP 7
Risk Assessment

Are key risks and dependencies relating to
procurement processes, identified, understood,
prioritized, monitored, mitigated and
communicated? 7 RISK ASSESSMENT

• Risk Assessment Matrix
• Risk Mapping Charts
• Dedicated cloud based apps
• Corrective Action plansAre keys risks and dependencies relating to
procurement processes, identified, understood,
prioritized, monitored, mitigated and
communicated?7 RISK ASSESSMENT
Tools Available

STEP 8
Social Responsibility

How does the company plan to take account of
its social, economic and environmental
responsibilities through procurement to make a
big impact? 8 CORPORATE SOCIAL RESPONSIBILITY

• Code of Ethics in Procurement
• UN Global Compact
• ISO 26000
• CSR External Audit Guidelines
• CSR RoadmapsHow does the company plan to take account of
its social, economic and environmental
responsibilities through procurement to make a
big impact? 8 CORPORATE SOCIAL RESPONSIBILITY
Tools Available

STEP 9
Procurement IT/Tools

9 PROCUREMENT IT/TOOLS
Once the basic ERP is up to date, generate
technology roadmaps designed to leverage
analytics and big data to uncover new
opportunities in company spend.

• Digital Strategy development
• Technology roadmaps
• Procurement Process maps
• Process reengineering (Source-to-Pay)
• BPA/RPA
• e-Procurement tool sets
• Technology Enablement
• Potential use of IoT and Big DataOnce the basic ERP is up to date, generate
technology roadmaps designed to leverage
analytics and big data to uncover new
opportunities in company spend. 9 PROCUREMENT IT/TOOLS
Tools available

STEP 10
KPI’s and Performance
Reporting

Define future procurement savings and metrics that will
be monitored and shared. Should always be easily
translated into P&L terms, namely the impact of
Procurement performance on EBIT. Enabled by an
appropriate IT. 10 KPI’S AND PERFORMANCE REPORTING

• Procurement Dashboards
• Performance calculation rules – Procurement indexes –
TEFYS
•Return on Procurement Management Assets (Procurement
ROI)
• Performance benchmarking
• Communication Plan10 KPI’S AND PERFORMANCE REPORTING
Basic toolboxDefine future procurement savings and metrics that will
be monitored and shared. Should always be easily
translated into P&L terms, namely the impact of
Procurement performance on EBIT. Enabled by an
appropriate IT.

PROCUREMENT
STRATEGY
DEVELOPMENT
Opportunities
and Project
pipeline
Organizational
Alignment
Human Capital
Evaluation
and Training
Supplier
Strategy
Risk
Assessment
Corporate
Social
Responsibility
Procurement
IT/Tools
19-10-20
As many
multifunctional
iterations as necessary
to fully align on
corporate strategy
Spend
Analysis
Maturity
Assessment
KPI’s
Performance
Reporting
Procurement
Strategy
Deployment

www.sourcing-force.comO
+1 (647) 874 3076
bconstanty@sourcing-force.comBen Constanty
Market Development Director
Sourcing ForceJean-Louis Moreau
mail@jlmoreau.comExperienced Chief Procurement Officer
JLM Consulting
www.jlmconsultant.com
JLM CONSULTING