copyright 2008 sipm location x date, v.1 client xx purchase workshop objectives 20xx 1 this is a...
TRANSCRIPT
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Copyright 2008 SiPMwww.sipm.com
Location x
Date, V.1
CLIENT XX PURCHASE WORKSHOPOBJECTIVES 20XX
1
This is a draft example of a workshop. Feel free to adapt it to your needs. It should be a “feel good” workshop, where your buyers feel important. Celebrate the successes of last year and develop next years objectives. In the end, the buyers leave with individual objectives that are not yet SMART. They get 1 week to digest them and discuss them with the manager before final sign-off.
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Agenda Workshop
FIRST DAYPREPARATION
SECOND DAYCONSOLIDATION
13.45-14.00: 1. Welcome
Purpose Workshop (name)
08.30-10.00: 5. Consolidation objectives day 1
14.00-15.00: 2. Big picture: Purchasing Vision 10.00-10.45: 6. Brainstorming•Individual input•World-Class segments
15.00-15.45: 3. Achievements 20x 10.45-11.15: 7. Break – preparation by chairman
Break 11.15-11.30: 8. Assign objectives
16.15-18.00: 4. Brainstorming •Key learnings 20x•Objectives to be continued•Budget 20x (next year)
11.15-12.30: 9. Refine individual objectives
18.00: Catching-up Lunch
18.45: Refresh 13.30-14.00: 10. Wrap-up
19:30: Bar and dinner 14.30: End
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Agenda Workshop
FIRST DAYPREPARATION
SECOND DAYCONSOLIDATION
13.45-14.00: 1. Welcome
Purpose Workshop (name)
08.30-10.00: 5. Consolidation objectives day 1
14.00-15.00: 2. Big picture: Purchasing Vision 10.00-10.45: 6. Brainstorming•Individual input•World-Class segments
15.00-15.45: 3. Achievements 20x 10.45-11.15: 7. Break – preparation by chairman
Break 11.15-11.30: 8. Assign objectives
16.15-18.00: 4. Brainstorming •Key learnings 20x•Objectives to be continued•Budget 20x (next year)
11.15-12.30: 9. Refine individual objectives
18.00 Catching-up Lunch
18.45 Refresh 13.30-14.00: 10. Wrap-up
19:30 Bar and dinner 14.30: End
3
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Copyright 2008 SiPMwww.sipm.com
OBJECTIVES WORKSHOP
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Workshop Objectives
• The goal of the workshop is as a team to:
DEVELOP OUR INDIVIDUAL BUSINESS OBJECTIVES FOR 20XX
The difference between where we are (current status)
and where we want to be (vision and goals)
is what we do (target objectives and action plans)
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Workshop Objectives
• The objectives will need to be aligned
– Between each other
– In line with corporate strategy
– In line with purchasing mission
– Support the long-term purchasing vision & strategy
– Leave room for personal objectives
• Only new objectives
– On top of current daily activities
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Workshop Objectives
• The objectives will be SMART
– Specific Clearly state what it is you want to do/achieve by way of a factual description.
– Measureable. Ensure that the success of your business objective can be measured against concrete
criteria.
– Achievable. Is the objective achievable given your current operational resources and/or
competence/capacity.
– Realistic. Is the scope of the objective within the bounds of what is recognisable as a proper
‘business fit’.
– Time Bound. Include a time scale within which the objectives should be achieved .
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Copyright 2008 SiPMwww.sipm.com
THE BIG PICTURE:PURCHASING VISION AND MISSION
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Agenda Workshop
FIRST DAYPREPARATION
SECOND DAYCONSOLIDATION
13.45-14.00: 1. Welcome
Purpose Workshop (name)
08.30-10.00: 5. Consolidation objectives day 1
14.00-15.00: 2. Big picture: Purchasing Vision 10.00-10.45: 6. Brainstorming•Individual input•World-Class segments
15.00-15.45: 3. Achievements 20x 10.45-11.15: 7. Break – preparation by chairman
Break 11.15-11.30: 8. Assign objectives
16.15-18.00: 4. Brainstorming •Key learnings 20x•Objectives to be continued•Budget 20x (next year)
11.15-12.30: 9. Refine individual objectives
18.00 Catching-up Lunch
18.45 Refresh 13.30-14.00: 10. Wrap-up
19:30 Bar and dinner 14.30: End
9
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We are in the WINS program
• WINS : Our program to become best-in-class.
• World-Class Innovative Sourcing
• Innovative and structured methodology to approach world-class
• Todays workshop is part of WINS
Mr. WINS
More info at www.sipm.com 10
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Framework
Client Vision & Strategy
P u r c h a s i n g Mission
P u r c h a s i n g Strategy
P u r c h a s i n g Structure
P u r c h a s i n g Vision
Categ
ory
plan
Execution
Categ
ory
plan
Categ
ory
plan
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Client mission and strategy
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TYPE HERE CORPORATE MISSION/STRATEGY
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Client mission and strategy: link to purchasing
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TYPE HERE WHAT THIS MEANS FOR PURCHASING
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Scope
Direct: 40 M€40%
Overhead: 25 M€25%
Scope: 65M€
Labour: 35 M€35%
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Purchasing Vision
Client Vision & Strategy
P u r c h a s i n g Mission
P u r c h a s i n g Strategy
P u r c h a s i n g Structure
P u r c h a s i n g Vision
Categ
ory
plan
Execution
Categ
ory
plan
Categ
ory
plan
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Purchasing Vision client
WE WILL BECOME ONE OF THE
FEW “WORLD-CLASS” SOURCING DIVISIONS
IN THE WORLD
WE WILL BECOME ONE OF THE
FEW “WORLD-CLASS” SOURCING DIVISIONS
IN THE WORLD
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= INSPIRING ONE-LINER (SEE EXAMPLE):
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Why is World-Class important?
0
10
20
30
40
50
60
70
80
90
CompanyRevenue
Profit Dir. Labour Ind. Labour Overhead COS
Mil
joen
en
7M€61M€
85% of our turnover is spent with suppliers!We will need to superiorly manage this spend.
Source data: xxx
SCOPE
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Vision: what does world-class look like?
• Internal customer satisfaction (both board and BU)
• Being “spoken” (in the same way as an UPS…)
• Client purchase keynote speaker at international conferences
• Discover differentials with competition
• Suppliers ask us to present at their (world-)conferences
• Our suppliers want to align with us
• xM profit increase thanks to purchasing
• Manage total spend
• World-class = Rarity/unique/small world
RESULT OF BRAINSTORMING
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You may want to use the wall during brainstorming i.e. tape a roll paper on the wall and write down the results of the brainstorming.
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Vision: what does world-class look like?
Your logoYour logo
Possible quote to paste on site: Client stock quote peaks thanks to client purchasing.Client purchasing enhances overall value through great strategic thinking, great planning and smart negotiations.
Client website/investors page
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You may want to use the wall during brainstorming i.e. tape a roll paper on the wall and write down the results of the brainstorming.
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Purchasing Mission
Client Vision & Strategy
P u r c h a s i n g Mission
P u r c h a s i n g Strategy
P u r c h a s i n g Structure
P u r c h a s i n g Vision
Categ
ory
plan
Execution
Categ
ory
plan
Categ
ory
plan
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Purchasing Mission
• = measurable long-term goal
By 20xx, purchasing will have:
•Xxx
•Saved xxxM€ (DCF)
•built a reputation of “reliable partner”: (example)
•strong team with professionals who belong to the top in their field
•supplies transparency in (future) spend
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TYPE HERE THE PURCHASING MISSION
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Purchasing Strategy
Client Vision & Strategy
P u r c h a s i n g Mission
P u r c h a s i n g Strategy
P u r c h a s i n g Structure
P u r c h a s i n g Vision
Categ
ory
plan
Execution
Categ
ory
plan
Categ
ory
plan
22
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WINS strategy: main steps to reach world-class
Skills(People/processes/systems)
Bronze Silver Gold
1. Strategic Sourcing and Category Management
Bronze Quick wins/cut down source plans in placeMore formal sourcing strategies under developmentSavings are measured but not captured
Silver Defined way of sourcing agreed and in place for all spendEach major category has a sourcing leader
Global sourcingMeasure, Capture and Control savings (1), formally acknowledged by local FD
All significant glass have dual supplyTransition PU to dual sourcing/600ml technology
Gold Time allocation buyers: 5% tender, 5% problem solving, 40%analysis and cost out initiatives, 20% listening to stakeholders, 20% competitive advantage analysis
Savings are aligned with budget and reporting packTop Management review & challenge of source plans
(1): capturing savings is different from price down benefit.
Nothing1 2 3 4 5 6 7 8 9
Bronze Silver Gold
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Cov
erag
e
0%
40%
80%
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WINS strategy: main steps to reach world-class
20%
SKILLS
0%
40%
80%
CO
VE
RA
GE
Bronze Silver Gold
0 MEASURE
Yr 3
Yr 4
Yr 2
Yr 1
60%
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MISSION: DESCRIBE IN BULLETS
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Vertical axis: coverage
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EXPLAIN HERE THE CURRENT STATUS
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Horizontal axis: skills
SkillsWINS support - Tactical process - operational process
0,0
2,0
4,0
6,0
8,0
10,0
STRATEGIC INT LEADERSHIP DESIGN of TAC TENDER PROCE RELATIONSHIP STRATEGIC CO CAPITAL PROD OPERATIONAL
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EXPLAIN HERE THE CURRENT STATUS
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WINS strategy = current status
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= hard €
Yr 1
Yr 1
SET GOALS YEAR X = CURRENT WORKSHOP
20%
SKILLS
0%
40%
80%
CO
VE
RA
GE
Bronze Silver Gold
60%
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WINS strategy = execution is key
• Uitspraak Bossidy: zie extranet
• Delivery of Individual objectives is key – monthly coaching sessions
– tools at your disposal via sipm.com
– colleagues
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Purchasing Structure
Client Vision & Strategy
P u r c h a s i n g Mission
P u r c h a s i n g Strategy
P u r c h a s i n g Structure
P u r c h a s i n g Vision
Categ
ory
plan
Execution
Categ
ory
plan
Categ
ory
plan
29
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Organisation
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TYPE HERE CURRENT ORGANISATION STRUCTURE AND (IF APPROPRIATE) - FUTURE
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Responsibilities in purchase process R&R
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YOU MAY WANT TO EXPLAIN THE R&R PER FUNCTION: who does what?
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Copyright 2008 SiPMwww.sipm.com
ACHIEVEMENTS 20XX
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Agenda Workshop
FIRST DAYPREPARATION
SECOND DAYCONSOLIDATION
13.45-14.00: 1. Welcome
Purpose Workshop (name)
08.30-10.00: 5. Consolidation objectives day 1
14.00-15.00: 2. Big picture: Purchasing Vision 10.00-10.45: 6. Brainstorming•Individual input•World-Class segments
15.00-15.45: 3. Achievements 20x 10.45-11.15: 7. Break – preparation by chairman
Break 11.15-11.30: 8. Assign objectives
16.15-18.00: 4. Brainstorming •Key learnings 20x•Objectives to be continued•Budget 20x (next year)
11.15-12.30: 9. Refine individual objectives
18.00 Catching-up Lunch
18.45 Refresh 13.30-14.00: 10. Wrap-up
19:30 Bar and dinner 14.30: End
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Achievements 20xx
€ 2006 2006 => € 2007 LT SUPPORT
• Category x 100 K €
• Category y 60 K €
• Category z 400 K €
• … …..
• Total x K €
• Category x, y, z
• xxx
• Dashboard
• New people
• xxx
“WE HAD AN EXCELLENT AND BUSY YEAR”“WE HAVE INCREASED OUR CREDIBILITY”
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BRAINSTORMING: USE FLIPCHART (EXAMPLE FOR CLIENT PREPARING 2007 OBJECTIVES)
You may want to use the wall during brainstorming i.e. tape a roll paper on the wall and write down the results of the brainstorming.
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Achievements: external view
• tekst
35
TYPE HERE VIEWS FROM CEO, SUPPLIERS… (IF APPROPRIATE)
You may want to use the wall during brainstorming i.e. tape a roll paper on the wall and write down the results of the brainstorming.
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Copyright 2008 SiPMwww.sipm.com
LEARNINGS 2006CONTINUE OBJECTIVES
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Learnings 20xx
POSITIVE NEGATIVE (WHAT TO AVOID IN 20XX+1)
• xxx • xxx
Rank from important to less important
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USE FLIPCHART
You may want to use the wall during brainstorming i.e. tape a roll paper on the wall and write down the results of the brainstorming.
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Objectives to be continued
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USE FLIPCHART
You may want to use the wall during brainstorming i.e. tape a roll paper on the wall and write down the results of the brainstorming.
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Budget/expectations stakeholders
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PUT INPUT FROM OTHER STAKEHOLDERS ON FLIPCHART
You may want to use the wall during brainstorming i.e. tape a roll paper on the wall and write down the results of the brainstorming.
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Copyright 2008 SiPMwww.sipm.com
DAY 2SUMMARY DAY 1
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Agenda Workshop
FIRST DAYPREPARATION
SECOND DAYCONSOLIDATION
13.45-14.00: 1. Welcome
Purpose Workshop (name)
08.30-10.00: 5. Consolidation objectives day 1
14.00-15.00: 2. Big picture: Purchasing Vision 10.00-10.45: 6. Brainstorming•Individual input•World-Class segments
15.00-15.45: 3. Achievements 20x 10.45-11.15: 7. Break – preparation by chairman
Break 11.15-11.30: 8. Assign objectives
16.15-18.00: 4. Brainstorming •Key learnings 20x•Objectives to be continued•Budget 20x (next year)
11.15-12.30: 9. Refine individual objectives
18.00 Catching-up Lunch
18.45 Refresh 13.30-14.00: 10. Wrap-up
19:30 Bar and dinner 14.30: End
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Summary Day 1
• Most important projects
• Objectives to continue
• Learnings
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Copyright 2008 SiPMwww.sipm.com
INDIVIDUAL INPUTWORLD-CLASS QUESTIONNAIRE
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Agenda Workshop
FIRST DAYPREPARATION
SECOND DAYCONSOLIDATION
13.45-14.00: 1. Welcome
Purpose Workshop (name)
08.30-10.00: 5. Consolidation objectives day 1
14.00-15.00: 2. Big picture: Purchasing Vision 10.00-10.45: 6. Brainstorming•Individual input•World-Class segments
15.00-15.45: 3. Achievements 20x 10.45-11.15: 7. Break – preparation by chairman
Break 11.15-11.30: 8. Assign objectives
16.15-18.00: 4. Brainstorming •Key learnings 20x•Objectives to be continued•Budget 20x (next year)
11.15-12.30: 9. Refine individual objectives
18.00 Catching-up Lunch
18.45 Refresh 13.30-14.00: 10. Wrap-up
19:30 Bar and dinner 14.30: End
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Individual input
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PERSONAL INPUT THAT HAS NOT BEEN DISCUSSED
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World-class segments
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DISCUSS QUESTIONNAIRE: NEW PROJECTS?
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Copyright 2008 SiPMwww.sipm.com
APPENDIX
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First price, than costs
Cost outCost downPrice downPrice drift Cost outCost downPrice downPrice drift
Tactical cost management Strategic cost management
Cost
Price
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In your quest for better purchasing, first focus on price. Only after focus on cost.
current status
© John Hughes