© the delos partnership 2005 a workshop for dairygold dairygold consumer foods & tesco ireland...

© The Delos Partnership 2005

A Workshop forA Workshop forDairygoldDairygold

Dairygold Consumer Foods

& Tesco Ireland

How to minimise the impact on Dairygold’s bottom-line


Objectives for workshopObjectives for workshop

1. To prepare for negotiations with Tesco on 10th November

2. To outline likely Procurement strategies and tactics which Tesco will use and counters for these moves

3. To discuss and develop negotiating strategies which will assist Dairygold in their desired aim to minimise the LTA’s which Tesco will aim to impose

4. To review all aspects of the negotiating process which can be used

• Meeting skills• Presentation skills• Negotiation strategies

5. To understand all aspects of Tesco’s process and Supplier Relationship Management to ensure that all aspects of the relationship can be leveraged at minimum cost to Dairygold

6. To ensure that there is minimum impact on Dairygold’s profitability as a result of these key negotiations with Tesco


Workshop ContentWorkshop Content

1. Preparation for negotiation around understanding of current position

2. Understanding of complete skills requirements for negotiation

3. Simulation and role play of Dairygold and Tesco Ireland

4. Preparation of Action Plans for negotiation


Dairygold Workshop Dairygold Workshop AgendaAgenda

November November 77thth

Morning Morning SessionSession

ItemItem

Objectives and Goals for the WorkshopObjectives and Goals for the Workshop

Dairygold Business StrategyDairygold Business Strategy

Dairygold Financials & 2005 Interim ResultsDairygold Financials & 2005 Interim Results

Product, Sales & Discounts Strategy / Analysis Product, Sales & Discounts Strategy / Analysis

Customer Contribution AnalysisCustomer Contribution Analysis

Competition Analysis and Tesco PositioningCompetition Analysis and Tesco Positioning

Dairygold CRM System & Tesco / Customer AgreementsDairygold CRM System & Tesco / Customer Agreements

Tesco Ireland Tesco Ireland – Account History, Management, People, Results – Account History, Management, People, Results

Tesco – Vision, Strategy & Priorities Tesco – Vision, Strategy & Priorities

Tesco – Supply & Procurement Analysis / PeopleTesco – Supply & Procurement Analysis / People

Tesco - Simulation Brief and RolesTesco - Simulation Brief and Roles


Dairygold Workshop Dairygold Workshop AgendaAgenda

November November 7th7ththth

Afternoon Afternoon SessionSession

ItemItem

Meeting, Presentation & Negotiation Skills Meeting, Presentation & Negotiation Skills

Strategic Sourcing – Tesco Process Strategic Sourcing – Tesco Process

Defining the Deal & Role PlayDefining the Deal & Role Play

Supplier Relationship ManagementSupplier Relationship Management

November November 8th8ththth

Morning Morning SessionSession

ItemItem

Tesco Ireland Meeting – Simulation Tesco Ireland Meeting – Simulation

Analysis from the Tesco Simulation Analysis from the Tesco Simulation

What Dairygold will do differently What Dairygold will do differently – Defined Tesco Strategy & Approach – Defined Tesco Strategy & Approach

Other Key Account Management PlansOther Key Account Management Plans

Action Plan DevelopmentAction Plan Development


Details of workshopDetails of workshop

Introduction 1. Review and discuss key issues to be addressed in negotiation with Tesco

2. Set aims and objectives for workshop

3. Review Financial results and business plans for 2005-2007 for Dairygold in general and Tesco in particular

Review of Dairygold relationship

1. Review Dairygold Sales & Discounting strategies

2. Review Customer Relationship Management system

3. Review current agreements

4. Put the Tesco account and negotiations in the context of Dairygold business objectives

5. Review Tesco versus other key account status, positioning and competition strategies. (Templates will be provided by Delos).

Preparation for simulation of negotiation

1. Focus in detail on Tesco and Tesco Ireland’s position

2. Prepare for negotiation simulation to ensure this is as realistic as possible for the planned meeting with Tesco on November 10th 2005.

November 7th Morning - OverviewNovember 7th Morning - Overview



Education 1. Education on Meeting, Presentation & Negotiation skills

2. The Strategic Sourcing process which Tesco use

3. Tesco’s process for RFQ [Request for Quotation] and RFI [Request for Information]

4. Tesco’s Supplier Relationship Management Process

Strategy Relationship review

1. Dealmaking and price discounting mechanisms will be reviewed

2. Review of the two way relationship between Dairygold and Tesco

Supplier Relationship management and Performance measurement

1. What do Tesco expect of suppliers in their Supplier Relationship Management process

2. What performance measures will Tesco expect to use, and how will Dairygold perform against these.

3. What will Tesco concede?

November 7th Afternoon - OverviewNovember 7th Afternoon - Overview



Simulation 1. Simulation of Tesco meeting and negotiation with teams for Tesco, Dairygold and observers

- Delos [Paul] to Lead “Tesco Ireland”

- Delos [Gordon] to observe

Simulation review 1. Review of Meeting simulation

2. Agreement of the critical success factors for the 10th November meeting – what will success look like

Action Plan development

1. Develop Action plans for the negotiation

2. Set goals and objectives and focus for the meeting

3. Develop plan for developing relationship with Tesco

November 8th Morning - OverviewNovember 8th Morning - Overview


Paul Warrick has substantial Strategic Purchasing & Global Sourcing expertise and a career track record of delivering outstanding supply side value improvement. He has held global purchasing leadership roles with ICI PLC, Elementis PLC, Lonza Biopharmaceuticals, Crown Cork & Seal, Georgia Pacific and Borden (Hexion).

Paul has complete spend category and project management expertise and recently led major improvement projects for covering Inventory Reduction, Global Logistics & Freight, Strategic Sourcing of key Raw Materials with volumes in excess of 500,000 tonnes and E Commerce.

In addition to his considerable experience of Chemicals, Biopharmaceutical, Packaging, Paper, Coatings, Adhesives and Metals industries, Paul has also worked with leading food, retail and consumer businesses. In his Purchasing role for Borden, he was also the global Casein buyer and has first hand knowledge of the leading Irish milk producers.

Paul has a chemistry & polymer science degree, is Six Sigma and World Class Manufacturing trained and has corporate and interim career experience of working with a number of world’s biggest consulting companies on Supply Chain and Purchasing transformation projects. He has provided Procurement, Supply Chain and Business strategy support and advice to numerous blue chip clients .

PAUL WARRICK


Gordon Hammond has strong supply chain and client relationship management skills that have been developed both within industry as a manager,and as a change agent and educator working in a variety of blue chip companies.

Prior to joining The Delos Partnership he worked for MML between 1994 and 2002. During this time, before the management buy out from ICL, he was Head of Division during which time he returned MML to profit and raised turnover by 500%. He built the reputation of the business to focus upon delivering business benefits for clients and worked with a variety of companies in this time including BAE SYSTEMS, Caterpillar, Lawson Mardon, Rolls Royce and Westland Helicopters. From 1990 to 1993 he was an associate of Mike Salmon’s MRP Ltd.

Before joining MRP Ltd, Gordon worked for Cincom Systems’ Manufacturing Systems Division as Consultancy Manager for a period of ten years. His role included profit and loss responsibility for pre and post-sales support team. The proactive approach taken was to ensure that Cincom’s clients implemented their business solution in an effective way so that they achieved business benefits. Clients included Rosyth Royal Dockyards, Birds Eye Walls, Dowty Aerospace, ICI Agrochemicals, ICI Pharmaceuticals, Marley. MEL, Smith & Nephew, Thorn EMI Electronics (Radar, Computer Systems and Defence Divisions) and Vickers SystemsHe has worked in a variety of supply chain management roles. At Chesebrough-Ponds Gordon was Inventory & Planning Manager. He project managed the company’s MRPII implementation which delivered increased staff productivity as well as significant customer service and stock turn improvements. Whilst at Rediffusion he managed a team of personnel that worked with the operating companies to increase both profitability and productivity. Projects ranged from subscriber payment methods, supply chain solutions for improved customer service and reduced stock holding. In addition he was responsible for the set up of all processes and procedures for an electrical discount warehouse chain selling goods direct to the public. Gordon is a Fellow of The Institute of Operations Management and currently tutors on two of their public course programmes. He was Chairman of the Institute for two years. He holds a degree in Industrial Engineering.

GORDON HAMMOND

© the delos partnership 2005 a workshop for dairygold dairygold consumer foods & tesco ireland...

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