Paul Harlington – CPO, Tui Travel

TUI GROUP | Group Procurement | Paul Harlington | 6th July 2016

The Digital Shift in Procurement

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About me


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Purchasing

• Keeping the factory floor running

• Paper based / transactional

Direct / Major Equipment Procurement

• Automotive

• Engineering

• Manufacturing

Indirect Procurement

• Stationery / Consumables

• Copiers and Printers

• Information Technology

• Services

• Marketing

The rise and change of Procurement


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4 TUI GROUP | Group Procurement | Paul Harlington | 6th July 2016

Hardware

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Software

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Marketing


Marketing

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http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj6wZn558zNAhUEvBQKHXjDBq0QjRwIBw&url=http://www.tui.com/service-kontakt/onlinekataloge/&bvm=bv.125801520,d.d24&psig=AFQjCNFtKz8FSlAnfwJJplSb_O6qoIdMOA&ust=1467275124590943

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjbpNCb6MzNAhVG7BQKHZHBDZ0QjRwIBw&url=http://www.candm.co.uk/cm/news/tui_travel_eyes_online_sales_rise&bvm=bv.125801520,d.d24&psig=AFQjCNFtKz8FSlAnfwJJplSb_O6qoIdMOA&ust=1467275124590943

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjo8sal6MzNAhXLVRQKHTZvDI0QjRwIBw&url=http://www.thedrum.com/news/2016/02/25/tui-we-d-rather-not-advertise-have-one-ad-appear-wrong-place&bvm=bv.125801520,d.d24&psig=AFQjCNFtKz8FSlAnfwJJplSb_O6qoIdMOA&ust=1467275124590943



Marketing

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Strong growth in

online distribution

A unique position in the global market

The TUI Group

1,800 travel agencies

across Europe

30 million customers

in 31 source markets

More than

300 hotels with

210,000 beds

Turnover of

20 billion euros

15 cruise ships

77,000 employees

140 medium- and

longhaul aircraft

Together we feature:


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Dependance on

online distribution

Digital Positioning

The TUI Group

Digital signage and

customer engagement

Communicating with

30 million customers

in 31 source markets

Online bed

sales

41% Online Sales

8 billion euros

Satellite comms

77,000 IT users

6 Airline IT eco-

systems, last minute

sales, 3rd party flights


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OLD RECIPES NO LONGER WORK

EVERY TOUCHPOINT. EVERY CHANNEL.

GLOBAL - FLEXIBLE

Hotel

Self Service

Portal In Store

Airline Staff

Destination

Agent

Social

Media

eCommerce

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© 2014 SAP AG or an SAP affiliate company. All rights reserved. 11

WELCOME TO THE AGE OF DIGITAL CUSTOMER DIGITALLY

CONNECTED

SOCIALLY

NETWORKED

BETTER

INFORMED

ENPOWERED CUSTOMERS ARE CHANGING THE RULES

WELCOME TO THE AGE OF DIGITAL

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The new world of Digital Procurement

Hygiene Factors

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http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj6wZn558zNAhUEvBQKHXjDBq0QjRwIBw&url=http://www.tui.com/service-kontakt/onlinekataloge/&bvm=bv.125801520,d.d24&psig=AFQjCNFtKz8FSlAnfwJJplSb_O6qoIdMOA&ust=1467275124590943



2012 2017 desk

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)


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Marketing versus IT versus Digital


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Pri

mary

colo

urs

• Always use

TUIType

• Font

size18pt

• Line spacing

6 pt

• titles in TUI-

Dark Blue

• Bullet points

& standard

text in New

TUI-Grey

Conve

nti

ons

TUI-Corporate Blue

214.238.252

TUI-Dark Blue

9.42.94

New TUI-Blue

112.203.244

TUI-Red

239.0.0

Functio

nal

New TUI-Green

170.215.0

TUI-Yellow

255.225.0

TUI-Red

239.0.0

TUI-Black

0.0.0

TUI-White

255.255.255

New TUI-Grey

115.115.115

New TUI-Beige

215.210.195

New TUI-Sand

255.223.183

New TUI-Light Grey

216.214.216


“Immigration policy must change to stop digital skills crisis“

“Digital skills shortage hits crisis levels“

“Europe rallies together to solve digital skills crisis”

“Procurement jobs set to grow rapidly, but skills shortage remains a problem

for employers”

de

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tudio

Trial

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Conclusion

CPOs must address the

Digital Shift in Procurement

Digital is the new “direct”

category

Traditional procurement

approaches don’t work

“Direct” and “Indirect”

concepts redundant


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Paul Harlington – CPO, Tui Travel

Business

Transcript of Paul Harlington – CPO, Tui Travel