Team Development Slide 1 © The Delos Partnership 2005

Supplier Relationship Management Supplier Relationship Management Module 4 – Project Team Development

• Vision & Strategy• Supplier Interfaces• The Business Model• Supply Vision & Strategy• Key Internal Relationships

Team Development Slide 2 © The Delos Partnership 2005

Board of Directors

CEO

Executive Committee

Global Sales & Marketing Global Supply

Finance Operations

Thousands of employeesOne of the market leaders, present in many countries

Typical Business StructureTypical Business Structure

Team Development Slide 3 © The Delos Partnership 2005

Supply Vision Supply Vision

What is your Supply Vision and what Strategies are being used to achieve the supply vision internally and with your Suppliers?...

Team Development Slide 4 © The Delos Partnership 2005

Supplier Interfaces Supplier Interfaces

Spend Category Suppliers

Raw Materials Packaging Consumables Energy & Utilities CEMRO Logistics Technical Goods & Services People

Businesses

• CEO & Directors • Finance• Purchasing • Supply Chain,• Development• Engineers• Influencers,

Purchasing Function

Purchasing Director Sourcing Managers Category Managers Buyers Analysts P2P

Supply Chain Function

• Supply Chain Director• Planning Manager• Master Scheduler• MRP Planner / Buyers• Warehouse Manager• Logistics Manager

Other Key Functions

Manufacturing Finance Development Engineering HR Sales & Marketing Legal

Team Development Slide 5 © The Delos Partnership 2005

New in New in 2005/6/72005/6/7

VisionVision2005/6/72005/6/7

StrategyStrategy

PrioritiesPriorities2005/62005/6

Demand Demand

Quality, Finance Quality, Finance I.T. etcI.T. etc

SuppliersSuppliers

Business Model IntegrationBusiness Model Integration

Supply Side Integration

Team Development Slide 6 © The Delos Partnership 2005

Supply Supply Improvement Improvement

StrategyStrategy

Supply Supply Improvement Improvement

StrategyStrategy

New Supplierswith better value

proposition

New Supplierswith better value

proposition

Supplier Cost & Price

Improvement

Supplier Cost & Price

Improvement

Supplier RFTQ100%OTIF

Performance

Supplier RFTQ100%OTIF

Performance

SupplierOn Time

New ProductPerformance

SupplierOn Time

New ProductPerformance

SupplierSales Forecasting

& Demand Planning

SupplierSales Forecasting

& Demand Planning

SupplierLead time &

Process Improvement

SupplierLead time &

Process Improvement

Improved Supply Strategy Improved Supply Strategy

+ Quick Wins+ Quick Wins

Team Development Slide 7 © The Delos Partnership 2005

Business and Financial Strategy & Priorities

Sales & MarketingSupply Chain

& Manufacturing

Customer ServicePurchasing

& Supplier Management

Innovation Support Functions

Demand & Supply BalanceDemand & Supply Balance

Demand & Innovation

Side Processes &Management

Supply Side Processes &Management

Team Development Slide 8 © The Delos Partnership 2005

Supply Side Resources & Plan Supply Side Resources & Plan

Business & Customers

• Business Strategy• Priorities• Key Markets • Product Offer• Product Innovation• Supply Chain • Competitors• Alliances• Channels• Quality & HSE

Business & Customers

• Business Strategy• Priorities• Key Markets • Product Offer• Product Innovation• Supply Chain • Competitors• Alliances• Channels• Quality & HSE

Culture HSE, Quality, Lean

• HSE Performance • Eye of the customer• Voice of the customer• Welcoming problems• Internal failure• Supplier failure• Six Sigma / Lean • Total Quality

Culture HSE, Quality, Lean

• HSE Performance • Eye of the customer• Voice of the customer• Welcoming problems• Internal failure• Supplier failure• Six Sigma / Lean • Total Quality

Supplier Management

• Business Centric• Procurement Policy• Risk Map• Spend Map• Agreements• Supplier Map / Managers• Partnership projects• Sourcing Process• Leverage/Benchmarks• Performance Measures• Workshops• Total Value Plans

Supplier Management

• Business Centric• Procurement Policy• Risk Map• Spend Map• Agreements• Supplier Map / Managers• Partnership projects• Sourcing Process• Leverage/Benchmarks• Performance Measures• Workshops• Total Value Plans

Supply People

• Organization• Roles• Capability & Values • Education• No Holes• Reduction of layers• Focus & Goals • Remuneration• Polycompetence

Global Supply

• Key Plants• Core processes• Maintenance• CEMRO• Capacity• Productivity• Logistics• Inventory• Planning Systems

Global Supply

• Key Plants• Core processes• Maintenance• CEMRO• Capacity• Productivity• Logistics• Inventory• Planning Systems

Team Development Slide 9 © The Delos Partnership 2005

Interfaces with Suppliers Interfaces with Suppliers

CEO

Sales

Marketing

Finance

R&D

HRIT

Delivery

Team Development Slide 10 © The Delos Partnership 2005

Customer FocusCustomer Focus

Work together to come up with ideas for Supply Chain and Purchasing to integrate with the Vision & Strategy, be more Customer centric and how valuable customer solutions could be delivered faster…

Team Development Slide 11 © The Delos Partnership 2005

Questions ?Questions ?

Team Development Slide 12 © The Delos Partnership 2005

Supply Side Planning is dedicated to preparing the future;

• Current Year – Delivery & the starting point for analysis / assessment for the future

• Next Three Years – Current / +1 Year / +2 Years• Purchasing Strategy, Focus & Priorities for the Current Year• What needs to be done in the current year to prepare for next year • Purchasing Strategy for next year • Plans in the current and next year for 2 years time

• Preparing the Supply Side future is made up of five key elements;• Supply and Purchasing People - Strategy and Education• Demand & Innovation Alignment (S&OP – IEP) • Manufacturing, Facilities and Process Alignment (including ERP)• Quality First & H.S.E. • Supply Chain, Procurement & Finance Integration

Supply Side Planning Approach Supply Side Planning Supply Side Planning