1. 2 executive board director general: kenneth plummer media director: lars grarup director of...
TRANSCRIPT
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Executive board
Director General: Kenneth Plummer
Media Director: Lars Grarup
Director of Programmes: (vacant)
Director of Economy: David Hellemann
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Strategic goals
•01 DR will create value for everybody•02 DR must engage, inspire and challenge•03 DR must provide unique experiences•04 DR whenever and however you like•05 DR means efficiency and job satisfaction
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Facts
Income: • appx. 3,5 mia. DKK (2006) / 470 million EUR
Expenses: • 3,3 mia. DKK (2006) / 442 million EUR
Employees: • 3300
Procurement:Appx. 1 mia DKK/120 million EUR
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Organisation
Procurement in DR
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Procurement in DR
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Agenda
• Procurement – Procurement analyses– Procurement policy– Fewer suppliers – the use of SKI– Internal storage in DR
• The procurement process – the use of Oracle e-business suite– E-matching - order and invoice– E-invoice – the experience – Use of electronic tools – i.e. marked places
• The future of procurement – case DR
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Procurement policy in DR
• Plans for development of suppliers • Plans for reporting• Plans for the use of e-commerce• Plans for the use of central contracts• Plans for co-operation with other
institutions • Guidelines for which persons have the
authority to enter contracts• Plans for how to uphold the principles• Plans for development of competences• Plans for how to develop procurement in
DR
Often forgotten
Procurementpolicy
Procurement strategy
Plans for items and supplier
Many compan
ies have this
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Supplier policy in DR
DR uses contracts made by SKI (National Procurement Ltd.)
in the following circumstances:
• Contracts of little value to DR• Contracts where DR are not able to obtain better
terms than SKI
DR has co-operated with SKI on EU-tenders i.e. tenderfor chairs and tables for office purposes
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Procurement analyses in DR
• We do them ourselves
– Analyses on the procurement pattern in DR• Procurement Project in DR – result 180
mio. DKK / 30 million EUR in savings
– Analyses of the procurement process in DR
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Method
•Analysis on: –Costs on goods and services
–Cost on processes
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Procurement in mio. dkkapp. 900 mio. dkk
220
145
95
72
46
45
37
34
28
26
100
8
9
10
33
Technical equipment
Telecom
IT, hosting, licens mv.
Services
Consultanties
Datamedia
Goods
Office furniture and props
Transportation
Travel
Energy
Marketing
Insurance
Text
Office supply
Procurement analyses in DR
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Target – Procurement project
0
16
44
76
109
141
0,3
21,6
57,8
98,8
139,8
180,9
141
181
0
20
40
60
80
100
120
140
160
180
200
2002 2003 2004 2005 2006 2007 Total
År
mil.
kro
ner
Akk. target
Total obtained
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4858
77 78 81
0
10
20
30
40
50
60
70
80
90
2002 2003 2004 2005 2006
%
Loyalty – procurement contracts
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15
17
40
65
7888
0
10
20
30
40
50
60
70
80
90
2002 2003 2004 2005 2006
%
Loyalty – procurement system
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The procurement process
– the use of Oracle e-business suite
• We store the invoice images in Oracle • We store the list of the approvers in Oracle • We use Microsoft Outlook to forward
information about invoices• We keep the invoices inside Oracle as long as
the financial transactions – in DK 5 years
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Previous to e-handling of invoices
• 64.000 invoices handled manually • The lowest benchmark cost of handling an invoice
manually was DKK 350 / 47 EURo The cost in DR was much higher
• DR paid around DKK 300.000 / 40.000 EUR annually in interests
• 3.000 invoices disappeared in DR• 30 days from receiving an invoice, until it was approved• 11 staff in AP department
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Today with Fakturius
• All invoices are handled via the electronic system –40.0000
• The cost of handling an invoice is now DKK 150 / 20 EUR• DR pays DKK 50.000 / 6.700 EUR annually in interests • Very few invoices disappear in DR (and only because
they’re not being sent directly to the credit bookkeeping)• 6 days from receiving an invoice, until it is approved• 6 staff in AP department
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Focus in 2007 – Contracts module
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Winning bid price
Price before auction
Prisniveau
Expecxted longterm price
Case: e-auktion – IT hardware
Savings : 10%
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Internal storages in DR
•Used to have a large internal storage
•Cost benefit analysis – not financial sound solution for DR
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DR BYEN- a world class media house
What the future holds – Coherent services for the customers
case: Analyses on services in DR
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DR BYEN – a world class media house
• For the Danish public this means: – Better programs – More to choose between
• For the employers in DR this means:– A flexible and open workplace – Cooperation and creativity
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The task in 2005
• Find the service solution, that is best for DR – in terms of quality, competences, flexibility and finance
– Goal – savings 8 mio. DKK / 1 million EUR
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How to choose the best solution
• Description of possible solutions
• Analysis of how to obtain the goal of savings
• Pros and cons of the chosen scenario
• Risks and considerations
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Two possibilities where investigated
EU tender
Service contract that ensures the level of quality and 8 mio. dkk in yearly savings
Some are outsourced others are remaining internal
Option 1 Option 2
EU tender
All services to be outsourced
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Parameters for choice of solution
• Quality in the solution• Steering of services -
organisation• Good-will • Finance• Innovation in services• Flexibility in services • Know-how• Time• Image
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Choice
It is about making decisions • Capacity• Quality• Culture• Co-operation
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The chosen solution
2EjendomsserviceRengøring, vinduespolering og udvendig renholdIndvendig og udvendig bygnings-vedligeholdInventarvedligeholdTerrænvedligeholdTilstandsvurderingFlytningerBrandberedskabParkeringsadministration og - serviceRenovation og afløbvagt
1Intern serviceOmstillingReceptionIntern postDistributionKopiserviceMødelokaleadministrationViceværtopgaverKontrollører og Garderobe
3ForretningsserviceMedarbejder Restaurant - interne spisestederRestaurantBistroKiosk
Internal services Outsourced service
Internt i DR Udbydes i projektkonkurrence
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The contract: partnership
– Joint DR/ISS project group was formed with the purpose to analyze, negotiate and establish the contract.
– Yearly budget DKK 34 mio. / 4,6 million EUR
– 5 year contract
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Co-operation
Customer
Service supplier – internal and external
Service management and
administration
Service requestsNegotiation of service contract
Supply of services
Payment
Evaluation of services and partnership
Evaluation – satisfaction with services supplied
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The ordering of services
•On the intranet
•Service rapport
•Tracking of services
•Controlling
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Balanced scorecard
Measurements via joint balanced scorecard
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•High quality
•Service level agreements must be followed
•Good working environment
•Yearly innovation plans
Joint goals for the process
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Focus
• The role of the procurement department, responsibility and tasks
• Competencies of the future procurement consultant
Role, responsibility and tasks
• Innovative thinking
• Look at procurement as part of a larger entity
The future of procurement
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To create value
• Lower procurement prices• Administrative effectiveness – lower cost of
processes• More competent suppliers and partners• Focus on total cost of ownership• Focus on total solutions for customers
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The future – reinventing procurement
Clear vision/mission Logic and effective
processesContracts with thechosen suppliers
Value creation
Integrated procurementsolutions
Reduction ofsuppliersSupplier
management
Procurementanalysis
Procurementstrategy
Full potential
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The challenges
• Develop bullet proof analysis and foundation for measurements
• Internal focus on the importance of loyalty towards supplier contracts
• Measurements
• Holistic approach
• Controlling
• Marketing and customer focus