ProcureCon USA – November 10-12, 2008

Day Two: Procurement Strategy & Organizational Alignment
Tuesday, November 11, 2008

7:30 Breakfast, Networking & Registration Inside The Solution Zone

8:40

Welcome Address

  Carina Kuhl
Executive Director
ProcureCon 2008
 

8:45

Chairperson's Opening Remarks

Jim Nelles
Partner
Roland Berger Strategy Consultants

9:05

Considering The Total Costs Of Your Entire Global Sourcing Process To Identify Your True Cost-Savings Potential

Scott Searls
Chief Supply Executive & SVP
Alltel Communications

How is it that we are using the concept of "total" when we talk about supply chains and supplier management .... what does it mean and what should it mean? Scott opens the day with an insightful and contrarian approach using multiple examples of the range of implications for taking a "total" perspective to our profession and the global demands being placed on us.


9:40

Accelerating Supplier Enablement To Drive Lights Out Procurement

Presented By:

James A. Szilagy
Chief Supply Chain Officer
UPMC
Michael DeLuca
Director - Supply Chain Systems
UPMC

10:15 Refreshments & Networking Inside The Solution Zone

10:45

How To Be A World-Class Strategic Sourcing Organization

Farryn Melton
C.P.M., VP, Global Strategic Sourcing, CPO
Amgen, Inc.

Farryn shares with you the top 10 lessons she has learned to create a world-class strategic sourcing organization. She draws from her experiences as the CPO at Amgen where she manages the company’s $5+ billion direct and indirect spend. Farryn also has extensive procurement experience at companies including Novartis, Pfizer, Warner-Lambert, Sony, Boeing and Rockwell International.


11:20

Collaborating With Your Key Suppliers To Ensure Continuous Supply

James A. Ward
VP and CPO
Eli Lilly

Unfortunately, the days of supply assurance are gone. As companies have rationalized suppliers, implemented lean supply chains and pursued increased global sourcing, many face disruptions and supply uncertainty. With 80% of supply disruptions caused by 20% of the commodities or suppliers, it is essential to gain visibility into your suppliers’ performance, financial & operational risks to predict potential supply disruptions and become proactive in risk mitigation planning.
Getting your suppliers involved to manage supply chain continuity:

  • Obtaining supplier buy-in as the key to business and supply chain continuity
  • Countering supply risk by co-creating supplier business continuity plans
  • Identifying how involved the procurement organization needs to be and is permitted to be in supplier continuity planning
  • Providing your suppliers with risk self-assessment tools and metrics for continuous tracking and reporting

11:55

Chairperson's Closing Remarks

Jim Nelles
Partner
Roland Berger Strategy Consultants

12:05

Lunch For All Attendees


12:05

ProcureCon Boardroom Meeting & Idea Xchange

Hosted by:

Jim Nelles
Partner
Roland Berger Strategy Consultants

The ProcureCon Boardroom is invitation-only. If you wish to nominate your CPO or senior management colleague, or if you qualify to attend, please contact Carina Kuhl at carina.kuhl@wbresearch.com or 646-200-7461 for further details.

Interactive Roundtables & Luncheon

Roundtable Topics:

  • Global sourcing and value creation strategies for the next 10 years
  • Risk management in procurement
  • Performance management
  • Procurement strategies for volatile markets
  • TVO – taking a value chain approach to procurement and collaboration
  • Managing Procurement Through M&A: Preparing for and capturing the value of the deal

1:30 Start Of Track Sessions: Choose Track A or B
  Track A: Globalization, Outsourcing & Emerging Market Developments
1:30

Track Chair Introductions

Omer Abdullah
Co-Founder and Managing Director
The Smart Cube, Inc

1:35

Assessing Potential Problems That May Affect Your Plans For Sourcing In Emerging Markets

  Ken Mitchell
VP Production Purchasing FX Acquired Products, Global Purchasing
Xerox Corporation

This session provides an overview of key issues to consider in managing your emerging markets sourcing plans with a main focus on Asia.


2:05

A.T. Kearney 2008 Assessment Of Excellence In Procurement Study: How Leading Procurement Organizations Are Succeeding In A Global, Virtual, And Ever Demanding World

Randy Watson
Partner
A.T. Kearney

The world of our 24-hour supply chain is always changing and challenging us with new issues, risks, and opportunities that appear daily. Some of the key questions that supply management professionals are asking include:

  • Do we have the right supply strategies in place and the right amount of influence to drive maximum value to the company’s bottom-line?
  • How should we address and adapt our strategies and organization to new movements in sustainability, supplier collaboration/partnering, procurement/category outsourcing, and emerging markets sourcing?
  • How best should we be organized for today…and, more importantly, for tomorrow?
  • What are the best supplier relationship management strategies and practices to extract ongoing value from your supply base after the sourcing has been completed? How are leading companies organizing themselves to better collaborate with suppliers?
  • What risk mitigation strategies should we have in order to prevent major supply and service level disruptions?
  • What technology and collaboration solutions and strategies should we have to drive greater value and decrease the time it takes to capture that value?
  • How do we attract and retain the best available talent?

These questions and many more are addressed in this overview of the results from the A.T. Kearney 2008 Assessment of Excellence in Procurement (AEP) Study. Over 400 companies from across the globe and across a variety of industries participated in the study. The 2008 study is the sixth AEP study since 1992.


2:40

Emerging Market Round tables: Identifying 10 Things You Need To Look Out For

Developing and outsourcing in emerging markets: a consideration of opportunities and constraints. In a roundtable setting we discuss the following issues and all challenges you bring to the table as well.

Moderated by:

Gregg H. Malicki
Executive VP, Office of the Chairman
Woods Equipment Company
 

Assessing the impact of unions in emerging markets
Moderator TBD

Handling structurally fragmented and/or largely state-controlled markets
Moderated by:

  Shawn D. Allen
President
Asset Auctions LLC

BPO to sell your surplus assets domestically
Moderated by:

  Ken Mitchell
VP Production Purchasing FX Acquired Products, Global Purchasing
Xerox Corporation

Handling logistics infrastructure, distribution, electronic visibility, reaction and lead times
Moderator TBD

Creating strategic local procurement offices
Moderated by:

John Geraint
Editor
CPO Agenda

Understanding cross-cultural management and finding and developing talent issues
Moderator TBD

Dealing With Information Scarcity in Emerging Markets: Maximizing Information and Intelligence to enable Better Sourcing Decisions
Moderated by:

Omer Abdullah, MD
the smart cube

Tools and lessons learned in supplier discovery and qualification in emerging markets
Moderator TBD

Securing, auditing and developing suppliers for your supply chain creating
Moderator TBD

How to succeed in Sourcing from Emerging Markets
Moderated by:

Aniruddha Gokhale
Head - Sourcing Solutions, Engineering & Industrial Services
Tata Consultancy Services

3:35 Refreshment & Networking Break

4:15

Case Study: Global Supplier Selection Guidelines To Identify First-Class Suppliers To Match Your Company's Sourcing Needs

Howard Levy
CPO - Strategic Sourcing
Biomet, Inc.

Many global sourcing professionals grapple with identifying qualified suppliers within the low cost countries. Add limited experience within a foreign market to having to verify unproven suppliers with challenged scalability who provide limited trustworthy information and we have the ingredients for many headaches.

  • Developing formal quality standards and requirements to which you hold all of your suppliers
  • Identifying local sources of supplier information to select a core group of potential suppliers that require further review
  • Doing the due diligence: gathering comparable information of potential suppliers, seeking independent validation, evaluating your suppliers’ suppliers, evaluating supplier risk

4:45

Innovations In Global Direct Material Sourcing

  Brian Huewe
Director, Global Sourcing
Goodrich Corporation

Step change improvements in the management, processes, and technology to identify, quote, source and implement complex direct material spend utilizing a collaborative cross functional team approach.


5:15

Roundtables: Global SRM And Procurement Outsourcing

  Scott Gaskill
Director Supply Management - General Procurement
United Technologies Corporation
  Howard Levy,
CPO - Strategic Sourcing
Biomet, Inc.
  Brian Huewe
Director, Global Sourcing
Goodrich Corporation
  Daryl Fullerton
CEO
BizNet Solutions
Bill Huber
Director, CPO Services
TPI

The global SRM and procurement outsourcing are an opportunity to group with colleagues to discuss real-life challenges you grapple with. Come prepared with up to 3 issues you want to address and share them with your roundtable discussion moderator. You can introduce the issues during the discussion and obtain the insights of your colleagues in a closed group of peers. What other opportunity do you have to receive industry feedback directly from your equals?!


5:55 Conclusion By Chairperson

6:00 End Of Main Conference Day Two

6:00-7:30 ProcureCon Party

  Track B: The Last Frontier In Indirect
1:30

Track Chair Introductions

Chaired by:
James V. Kelly
C.P.M. – CEO and Managing Principal
JVKellyGroup, Inc.

1:35

Driving Indirect Innovation & Savings Initiatives Around The Globe By Tapping Into The Know-How Of Your Suppliers

  Scott Gaskill
Director Supply Management – General Procurement
United Technologies Corporation

Since the inception of the UT500 program, UTC has realized over $1.5 billion in indirect spend cost savings. For several years now, non-critical sourcing categories have been outsourced to key suppliers. That does mean UTC lost some of its in-house expertise. Scott Gaskill is here to not only share with you how he engages his suppliers to achieve key performance, but also how he is leveraging the know-how of his indirect suppliers in a global environment.

  • Best practices in outsourcing indirect procurement to suppliers globally
  • Getting involved with your indirect suppliers to drive innovations and improvements in product, packaging and distribution
  • Developing your suppliers globally through innovative programs and technology to drive savings in your supply chain

2:05

Buyer Initiated Payments

  Marc Christman
Director
American Express Company

Companies have spent the last several years automating the front end of the source to settle process with ERP systems, e-procurement systems, automated workflows, etc.   The benefits achieved to date with these improvements include reduced costs, streamlined processes, better visibility into spend management, etc.  Organizations are now looking to improve and automate the settlement process; where they can utilize their purchasing cards to help improve the company’s cash flow by increasing their days payable outstanding (DPO). Join us to hear how a leading technology consulting firm has implemented American Express’s technology to automate the payment process.  Buyer Initiated Payment (BIP) can help grow the scope and volume of your company's CPC program - and the resulting rebates your company receives - thanks to robust controls, automatic reconciliation capabilities and enhanced spend data.  BIP allows you to make electronic payments for all types of spend using checks, EFT and ACH, as well.  This means reduced processing costs and fewer inquiries about payment status from suppliers.


2:40

Interactive Workshop: Deciding On Your Indirect Organizational Structure; Where Would You Place The Seat Of Power?

Howard Levy
CPO – Strategic Sourcing
Biomet, Inc.
Randall C. Clark, Sr.
Strategic Buyer, Volvo Group Non-Automotive Purchasing
Volvo Group Non-Automotive Purchasing

As indirect procurement continues to develop rapidly, we are starting to acknowledge the huge separation between indirect and direct organizational design structures. Just as direct purchasing organizations have experimented with permutations of centralized and decentralized models, indirect organizations are exploring design trends from their point of view.

  • Determining the merits and drawbacks of various indirect organizational designs from around the world (center-led, centralized, de-centralized, outsourced/off-shored, hybrid models)
  • Where is the seat of power;
    • Should indirect sit under treasury or the supply chain?
    • Where does the indirect budget come from?
  • How should indirect report into the organization to avoid creating silos between the two buying arms?

3:35 Refreshment & Networking Break

4:15

Streamlining And Driving Ownership Of Indirect Categories

Mikko Kivisto
Director Indirect Sourcing
Nokia

Direct and indirect categories have very different characteristics and each calls for a different leadership approach. In indirect procurement you deal with the individual needs of a high number of internal stakeholders and at the same time your company’s use of preferred suppliers is critical to success. Not to mention the challenges you encounter in measuring the value of your – often intangible - efforts. In this session we create a framework to drive ownership and streamlined processes of indirect categories.

  • Streamlining category process management taking indirect’s unique challenges into account
  • Allowing for tailored engagement strategies to incorporate the needs of each different stakeholder and supply market
  • Creating a skill requirements matrix for members of your indirect procurement team to lead specific categories
  • Finding a ‘universal’ way to capture and communicate indirect category strategy

4:45

Getting Procurement And Key Suppliers Involved In New Product Design Early On To Drive Green And Cost Saving Initiatives

  Scott Charon
Program Manager, Design for the Environment
Herman Miller

More and more companies are setting aggressive environmental goals to reduce air and water emissions and waste. They are sourcing ‘greener’ raw materials for their products, greening their supply chain processes and reducing their footprint.
Herman Miller launched its Design for Environment (DfE) program in the 1990s. At the core of the Herman Miller DfE program is the McDonough Braungart Design Chemistry (MBDC) Cradle to Cradle Design Protocol, which evaluates new product designs in three key areas:

  • Material Chemistry -- What chemicals are in the materials we specify, and are they the safest available?
  • Disassembly -- Can we take products apart at the end of their useful life to recycle their materials?
  • Recyclability -- Do the materials contain recycled content, and more importantly, can the materials be recycled at the end of the product's useful life?

A key element of the DfE program is the company’s work with its suppliers to co-develop environmentally responsible products. Take this great opportunity to learn how to implement a DfE program in your own organization.


5:15

Roundtables: Tackling The Last Frontier In Indirect Spend: Professional Services

Mikko Kivisto
Director Indirect Sourcing
Nokia
James V. Kelly
C.P.M. – CEO and Managing Principal
JV Kelly Group, Inc

For most companies, over 50% of all spend is in the indirect arena. In order for purchasing to be effective in directing this spend, the indirect function must be corporate in scope and accountability as it increasingly becomes involved in the specialized corporate functions such as marketing and advertising, legal, HR benefits programs and financial services. In this session we explore how to convince the departments that traditionally control professional services to allow procurement to take over the reigns.

  • Identifying the current complex and fragmented professional services spend throughout all categories in your organization
  • Assessing how purchasing can successfully take ownership of politically charged professional services categories
  • Re-training your internal users; driving internal user adoption and managing long-term compliance and continuity
  • Claiming added value, efficiencies and savings to add credibility to the indirect department

5:55 Conclusion By Chairperson

6:00 End Of Main Conference Day Two

6:00-7:30 ProcureCon Party