March 1, 2011

Main Conference Day One - March 1, 2010

Driving Efficiencies In Non-Traditional Indirect Categories– Best Practices In Category Spend Management

Some discretionary spend categories are particularly hard to gain enthusiasm from the end-user for a strategic sourcing approach. With that in mind, we created this interactive day where we ask a number of indirect procurement practitioners to demonstrate their path to success, step-by-step, so you go home with a roadmap for success as well as specific category insights.

Recognizing that all indirect spend categories have different infrastructures and requirements, this entire day is built around targeting and managing each spend category individually. Indirect categories are ‘like raising kids – each one has a different dynamic’, as Mike Rager (at Tyco International) puts it.

We focus on effectively sourcing and adding value to specific categories that have traditionally been tough to get into. The current business environment has created a window of opportunity the indirect purchasing organization needs to act upon now! You gain specific insights from fellow indirect procurement practitioners on what to do, and how, for some of the more esoteric indirect categories.

8:00 Registration, Networking & Breakfast
Registration, Networking & Breakfast
8:45 Chairperson’s Opening Remarks
Michael Dennis, Head of Strategic Sourcing, Indirect, Schreiber Foods
No session description available.
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Michael Dennis
Head of Strategic Sourcing, Indirect, Schreiber Foods

Michael recently joined Schreiber Foods to head up their Indirect Procurement activities. Before Schreiber Foods, he spent four years managing the central purchasing department at Johnson Controls. Michael gained a wealth of experience at Alcoa where he worked for over ten years in engineering and as their global capital procurement manager. He started his career as a maintenance engineer where he [read more]
8:50 Professional Services: Getting A Grip On Spend Without Control
Part A - Specific Category Case Studies Following A Step-By-Step Approach
Michael J. (Mike) Rager, Sr Director Indirect Sourcing, Tyco International, Ltd.
Tyco International, the 2009 Purchasing Medal of Professional Excellence winners, have produced close to $2 billion dollars in savings since 2003 despite a de-centralized approach to procurement across 5 business units. Under the guidance of Jaime Bohnke, VP of SCM, the company has taken a unique approach to giving purchasing a seat at the table of every business unit to influence spend in all categories; including all professional services spend Tyco representing $900 million. Professional services could be called a ‘last bastion’ of fertile ground and risk at Tyco. It’s a very emotional and relationship-driven space and requires a lot of buy-in from business users. Mike illustrates how procurement is bringing internal stakeholders together through executive steering committees and category specific procurement councils to jointly establish an optimal sourcing strategy and obtain the buy-in needed for execution. It is the change management piece that make this session so relevant to you. Hear all about Tyco’s journey to get things done in an area where you don’t have a lot of control as a procurement executive.
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Michael J. (Mike) Rager
Sr Director Indirect Sourcing, Tyco International, Ltd.

9:20 Travel 2.0: Reinventing Your Travel Program For Hard & Soft Business Results
Paul J. Perry, Global Sourcing Director - Travel, Nokia
As Paul Perry puts it, "You can always save some money through supplier negotiations and other traditional means, however the real benefits are found in compliance and sustained behavioral change right inside your own four walls." Tasked with reinventing Nokia’s travel program, Paul set out to go beyond rewriting the travel policy and focused on permanently changing the employee mindset towards travel. Taking a three-pronged approach by creating awareness, adjusting policy and driving behavioral change travel spend was greatly reduced. Also, the program has had very positive effects on health, safety, environmental footprint, work/life balance and business performance empowering employees to use alternatives to business travel.
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Paul J. Perry
Global Sourcing Director - Travel, Nokia

Paul J. Perry is the Global Sourcing Director responsible for Nokia’s global travel spend and serves on Nokia’s global indirect sourcing senior management team. During his tenure in Nokia’s Indirect Sourcing group, Paul also directed the Marketing sourcing efforts for North and South America as well as the overall indirect sourcing efforts for the Americas region managing near €1 billion euros in [read more]
9:45 Contract Staffing: Applying Work Packages ToSourcing Contract Staffing
Randall C. (Randy)Clark, Sr. Strategic Buyer, Volvo Group Non-Automotive Purchasing (MRO & Packaging), Volvo Group Non-Automotive Purchasing
Professional services are mostly negotiated on a per hour basis but can vary wildly based on the operating level of the people you need. To ensure the right quality of temporary labor for projects, Volvo is deploying a work package model to sourcing professional services. Traditionally more commonly used in capital equipment buys, a work package is based on deliverables versus billable hours. Taking a reward/penalty structure within the work package approach has resulted in major savings, quality improvement of outsourced labor projects and thus happier internal customers.
  • Exploring the work packages model to source professional services; what makes it work based on today’s success story and previous failure
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Randall C. (Randy)Clark
Sr. Strategic Buyer, Volvo Group Non-Automotive Purchasing (MRO & Packaging), Volvo Group Non-Automotive Purchasing

Randall C. Clark is a Global Senior Strategic Buyer for Volvo Group Non-Automotive Purchasing (NAP). His role is to create the procurement strategy for MRO and Packaging products and services required by the brands of Volvo Group worldwide. He is focused on the requirements of each manufacturing facility to create the process for supplier selection, negotiation, implementation and development. He [read more]
10:05 MRO
Michael Dennis, Head of Strategic Sourcing, Indirect, Schreiber Foods
Jake Verdegan, Indirect Spend Procurement Commodity Analyst, Schreiber Foods
Through the natural process of business evolution and rapid corporate growth the large and complex category of MRO had become an after thought. As Schreiber Foods, Inc. continues to execute an aggressive growth strategy, a new MRO strategy had to be developed to maximized expenditures and free up capital availability and exceed the needs of our customers. The new strategy must be sustainable, scalable and efficient, driving cost out and productivity in. Jake and Michael share the program attributes that is taking the category from highly decentralized and fragmented to center-led and leveraged. The discussion outlines the process from data collection, communication, collaboration on project role out to validation of savings.
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Michael Dennis
Head of Strategic Sourcing, Indirect, Schreiber Foods

Michael recently joined Schreiber Foods to head up their Indirect Procurement activities. Before Schreiber Foods, he spent four years managing the central purchasing department at Johnson Controls. Michael gained a wealth of experience at Alcoa where he worked for over ten years in engineering and as their global capital procurement manager. He started his career as a maintenance engineer where he [read more]
12727_003_JakeVerdegan

Jake Verdegan
Indirect Spend Procurement Commodity Analyst, Schreiber Foods

Jake joined Schreiber Foods as MRO, Category Manager in 2008. Jake’s background includes economics, finance and sales. His unique and powerful skills have been instrumental in building a strategic sourcing strategy that has lowered cost and improved lead times for Schreiber Foods. Jake has focused on relationships both internal and external to build collaboration, trust and results. Jake is presen [read more]
10:30 Networking & Refreshment Break
Networking & Refreshment Break
11:00 Marketing (including a focus on Print)
Jamie Crump, Director Indirect Strategic Sourcing, United Rentals
Jamie tackles key success factors of strategic category management from a marketing & print sourcing perspective:
  • Identifying and leveraging the key elements and unique requirements to being successful with the specific category negotiation
  • Assessing what the supplier can bring to the table for this category and what you should be aware of
  • Including unique support guidelines, SLAs and defined supplier and end-user responsibilities in the statement of work
  • Successful implementation is especially key in a category you have no previous track record in. Discussing what makes this implementation unique.
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Jamie Crump
Director Indirect Strategic Sourcing, United Rentals

Jamie Crump has more than 20 years indirect strategic sourcing experience in a variety of industries including banking, medical products, pharmaceutical, telecommunications and welding. Her category experience includes advertising, benefits, BPO, brand, contingent staffing, facilities, financial services, human resources, IT, legal, marketing, meetings & events, MRO, office services, print, re [read more]
11:30 Customer Service And Call Center Procurement Best Practices
Linda Winter, Director, Corporate Services Sourcing, PG&E (Pacific Gas & Electric)
Linda forged a new relationship with the Customer Service Group at Alltel, partnering with them to lead a 2.5 year project to offshore a portion of Alltel’s JD Powers award-winning customer call center operations. A key objective was the ability to deliver significant cost reduction with equal quality and seamless integration with the Alltel internal centers and back office systems (in all aspects of call queuing, quality and metrics). The team deployed a wide range of sourcing techniques including best practice research, RFPs, reverse auction, headto- head trials and VMI. Linda shares how a 36% increase in quality and performance and 56% in savings was achieved while creating an advocate for indirect procurement participation and processes.
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Linda Winter
Director, Corporate Services Sourcing, PG&E (Pacific Gas & Electric)

Formerly Director, Indirect Procurement and Strategic Sourcing, Alltel Wireless
12:00 Lunch for all Attendees
Lunch for all Attendees
1:00 Logistics: Strategic Sourcing of International Freight in a Dynamic Market
Diane O'Connor, Vice President, Post Sale and Supply Chain Procurement, Xerox Corporation
Diane and her team have taken a strategic and centralized global approach to sourcing international freight this year. First, they brought all international freight volumes together using an online tool. Then they identified potential suppliers and negotiated larger volumes to make the most of the softer market. The results have been excellent and Diane shares their keys to success beyond ‘right place, right time’ which you can emulate at your organization.
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Diane O'Connor
Vice President, Post Sale and Supply Chain Procurement, Xerox Corporation

1:30 Business User Perspective; ‘The Voice of the Customer’
It’s great to have different procurement executives share with you how their category efforts have come to pass. But wouldn’t it be even better to receive the business user perspective as well? After all, they hold the functional knowledge and requirements: We invited Michael and his business user counterpart to gain both their perspectives on collaborating – including specific challenges and achievements – on their joint path towards effective category management. Gain full insight to the thinking of your Business User before taking over the procurement reins!
Part B – Interactive, Category-Specific Roundtables
After the case study examples, we break into individual discussion groups by category to delve deeper into the process of obtaining category ownership and achieving optimal spend management and internal support as a result of your efforts to balance the voice of the customer with procurement objectives.

This is your opportunity to steer the conversation and delve deeper into the particular issues you are facing in managing a specific category.

So, if you want to make the most of this interactive format; Do your homework and arrive with the questions to which you need answers! The moderator starts the discussion asking all participants for key discussion points, taking notes on a flipchart. You then number the discussion topics into a natural discussion flow and start the group conversation using the framework you just helped create.

Here’s how the Roundtables work:
  • We start out with an introductory session where all moderators introduce themselves, their category and issues on the agenda to help you choose the discussions in which you want to take part
  • Then we embark on two back-to-back interactive discussions of 45 minutes each
  • Throughout, one participant keeps notes on a flip-over chart
  • We take a break while the moderators summarize the findings in a couple of PowerPoint slides
  • After the break, moderators present the key points back to all attendees – so you won’t miss out on any of the knowledge shared! We then embark on an interactive panel Q&A with the audience and the moderators
  • The slides will be available on the presentations download website after the event
2:00 Roundtable Moderator Introductions
Jamie Crump, Director Indirect Strategic Sourcing, United Rentals
Wayne Evans, Head of Procurement Americas, DHL Global Business Services
Michael Hart, Sr. Director Procurement, ConAgra
Diane O'Connor, Vice President, Post Sale and Supply Chain Procurement, Xerox Corporation
Michael J. (Mike) Rager, Sr Director Indirect Sourcing, Tyco International, Ltd.
Jake Verdegan, Indirect Spend Procurement Commodity Analyst, Schreiber Foods
The following spend categories are addressed during the roundtables:
  • Contract Staffing by Wayne Evans, Head of Procurement Americas, DHL Global Business Services
  • Professional Services (Including Legal) by Mike Rager, Sr. Director Indirect Sourcing, Tyco International, Ltd.
  • Marketing(including Print) by Jamie Crump, Director Indirect Strategic Sourcing, United Rentals
  • MRO & Packaging by Jake Verdegan, Indirect Spend Procurement Commodity Analyst, Schreiber Foods
  • Logistics by Diane O'Connor,  CPSM, Vice President, Post Sale and Supply Chain Procurement, Xerox Corporation
  • HR by Michael Hart, Sr. Director Procurement, ConAgra
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Jamie Crump
Director Indirect Strategic Sourcing, United Rentals

Jamie Crump has more than 20 years indirect strategic sourcing experience in a variety of industries including banking, medical products, pharmaceutical, telecommunications and welding. Her category experience includes advertising, benefits, BPO, brand, contingent staffing, facilities, financial services, human resources, IT, legal, marketing, meetings & events, MRO, office services, print, re [read more]
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Wayne Evans
Head of Procurement Americas, DHL Global Business Services

Wayne is currently the Vice President, Head of Procurement for the Americas at DHL, the global market leader of the international express and logistics industry. His career in procurement spans more than 20 years in which he has held senior level procurement positions at Lockheed Martin, Unisys, and CBS. In addition, he was a Senior Manager for a “Big Five” consulting firm where he performed suppl [read more]

Michael Hart
Sr. Director Procurement, ConAgra

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Diane O'Connor
Vice President, Post Sale and Supply Chain Procurement, Xerox Corporation

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Michael J. (Mike) Rager
Sr Director Indirect Sourcing, Tyco International, Ltd.

12727_003_JakeVerdegan

Jake Verdegan
Indirect Spend Procurement Commodity Analyst, Schreiber Foods

Jake joined Schreiber Foods as MRO, Category Manager in 2008. Jake’s background includes economics, finance and sales. His unique and powerful skills have been instrumental in building a strategic sourcing strategy that has lowered cost and improved lead times for Schreiber Foods. Jake has focused on relationships both internal and external to build collaboration, trust and results. Jake is presen [read more]
2:10 Roundtable 1: The Path To Strategic Category Management
Discussion Topics Include:

Category Profile & Strategy
  • Best practices in getting business units to ‘buy into’ the recommendations from the procurement team without a mandated approach
  • Challenges in pulling category spend out of the BU level to a crossfunctional buy
  • What are the key questions to ask in identifying:
    • The business requirements of the function
    • The service provider profile to meet user objectives
    • Demand/consumption management considerations and potential ROI


Advanced Sourcing & Negotiation Approaches
  • Discussing what advanced sourcing and negotiating approaches can you use beyond traditional methods
  • Identifying and leveraging the key elements and unique requirements to being successful with the specific category negotiation
  • Assessing what the supplier can bring to the table for this category and what you should be aware of
  • Including unique support guidelines, SLAs and defined supplier and end-user responsibilities in the statement of work


Implementation & Compliance
  • Successful implementation is especially key in a category you have no previous track record in. Discussing what makes this implementation unique.
  • Defining the right metrics and scorecard to measure this particular spend category
  • Effectively monitoring/measuring/documenting and communicating performance & defects to suppliers as well as driving joint value creation
3:00 Roundtable 2: The Path To Strategic Category Management
Attendees choose a second roundtable session and move to another table.
3:45 Refreshment & Networking Break
Refreshment & Networking Break (during which the moderators summarize the discussions on PowerPoint slides)
4:05 Closing – Group Conclusions & Wrap-Up
At the end of the day, we come together again as a group to discuss key insights and practical tips obtained; each moderator reports back on the key discussion findings and conclusions supported by PowerPoint slides (created during the afternoon break). The slides of all case studies and roundtable wrap-ups are available for download on the event proceedings website. You receive the web address and password via email after the event.
5:00 End of Day 1
End of Day 1