Www.procexcellenz.com Strategic Sourcing Consulting .

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Strategic Sourcing Consulting



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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.


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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


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

Www.procexcellenz.com Strategic Sourcing Consulting .

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