1. No category

SOURCING EXCELLENCE
”To be innovative, you need innovative suppliers”
(Loewe CEO)
” “Sourcing & logistics would remain the darkest continent of business the least exploited area of business for competitive advantage”
(Peter Drucker)
Morten Munkgaard Møller - 1
Hvem er jeg?
Kommerciel Baggrund
2008-2010
DILF, Procurement Practice, Director
2005-2008
LEGO System A/S, Global Procurement, Director
2005-2003
Arla Foods amba, Global Procurement, Process Manager
2003-1998
Bang & Olufsen A/S, Global Procurement, Project Manager
1996-1998
IBM, trainee
Akademisk Baggrund
2010-
Aalborg University, Center for Industrial Prod., Associate Professor
2005-2010
Aarhus School of Business, Part-time Associate Professor
2005-2006
Aarhus University, Assistant Professor
2001
Stanford University
1998-2002
Ph.D in Supply Chain Management
1990-1995
M.Sc., Aarhus School of Business
Morten Munkgaard Møller - 2
Sourcing Excellence - Research Group
Morten Munkgaard
Møller
Anders Peder
Lysholm Hansen
Ph.D-student
Professor
Chris Ellegaard
External, Professor
Nina Lidegaard
Ulla Normann
Christensen
?
?
Ph.D-student
Ph.D-student
Lars Mikkelsen
External, Associate
Professor
Linda Nhu
Larsen
ASSOCIATED TEAM
CORE TEAM
Associate Professor
John Johansen
Ph.D-student
Morten Munkgaard Møller - 3
Background I – where we came from..
- The growing role & importance of procurement and sourcing…
Value added
100%
20%
Internal task dominates the
organization
External task dominates the
organization
80%
0%
1930s
1940s-1960s
Logistics
1970s
1990s
1970s
Purchasing as an
administrative
function
1980s
Purchasing as supply
chain management
2000s
1990s
Supply Management
& Strategic Decision
Making
2010s
2000s
Outsourcing & LCC
sourcing
2010s
Sourcing Excellence
& Strategic
Purchasing
Morten Munkgaard Møller - 4
Background II – why focus on procurement?
…Highly leveragable
One of the fastest ways of improving the
bottom line…
The impact of procurement can be even
more powerful when the context of
enterprise profit margins are introduced
•
An enterprise´s profit margin, or more
specifically, its net profit margin is the
ratio of its bottom-line profits to its total
revenues
•
Below figure represents the average sales
volume needed to generate a bottom-line
impact (or profit) of $10 million.
•
It is an interesting exercise for CPOs to
take their delivered savings (actual or
targeted) and evaluate the in the context
of their employer´s actual profit margin
•
This may help inform executives as to the
relative value of investments made in
procurement
But…
Cost reduction by 10% can
double the profitability!!!
15%
50%
25%
10%
The way average cost are
•
The way cost are adressed
As is, one dollar saved is in fact much more
than a dollar on the bottom line…
Below figure represents the average
sales volume needed to generate a
bottom-line impact (or profit) of $10
million
Morten Munkgaard Møller - 5
Background I+II – where we come from..
- The growing role & importance of procurement and sourcing…
60%
B
A
A
Transactional: Very low strategic significance
B
Cyclical: Low/medium strategic significance
C
Operational: Medium/High strategic
significance
50%
PROFIT MARGINS
Degree of leverage by
Procurement activities
Software
Service
40%
Oil & Gas
30%
Pharmaceuticals
20%
10%
Retail
Telecom
5%
Computer Automotive
Manufacturing
0%
C
10%
20%
30%
40%
50%
60%
70%
80%
90%
D
Critical: Very High strategic significance
D
100%
% of SPEND OUTSOURCED
Degree of outsourcing
Source: Cox, 2008
Morten Munkgaard Møller - 6
HD-uddannelsen
I Strategisk Indkøb og
Sourcing….
Morten Munkgaard Møller - 7
HD-Uddannelsen – (Danfoss version)
Graduate
Diploma Main
theme
Educational
Period:
Course Agenda:
Main Topics
covered:
Main models,
concepts &
theories used:
DAY 1:
DAY 2:
DAY 3:
DAY 4:
DAY 5:
Role & Organisation
Category Management
Supplier Management
Business Negotiation
Sourcing of Technology
Date: XX
Time: 09.00-18.00
Date: XX
Time: 09.00-18.00
Date: XX
Time: 09.00-18.00
Date: XX
Time: 09.00-18.00
Date: XX
Time: 09.00-18.00
 Development of the
Procurement function
 Where do we come
from?
 Main theories within
Procurement
 Organization of the
Procurement Function
 Performance Mgmt.
 Background of
Procurements new &
increased role in the
company
 Roles & responsibilities
of Procurement
 Organisation &
Performance Mgmt.
within Procurement
 The concept of Category
Management
 Reverse Marketing –
the purchaser as sales
 Categorizing goods &
services
 Supplier Preferencing
 Sourcing Levers
 Category Strategy
 Origins of Category
Management (CM)
 CM in industrial firms
 Challenges with CM
 Stakeholder Mgmt
 How to create an
Category Strategy
 Spend & Market
Analysis
 Krajljic´s Portolio Model
 Stakeholder Mgmt.
Models
 Supplier Preferencing
 The Purchasing chessboard
 SRM versus CRM
 Different modes of
Supplier Relationship
Management
 Supplier Development
and/or exit
 Supplier attractiveness
 Competition for
supplier resources
 Supplier Relationship
Management
 Supplier Development
 Supplier Attractiveness
 Segmenting suppliers
 Differentiated supplier
approaches
 On-stage & off-stage
negotiation
 Interest vs. positions
 ABC of negotiations
 The strategy ladder
 The importance of
preparation
 Exercises
 Bensaous Portfolio
Model
 Network Theory
 Resource-based view
 Contingency theory





 The concept of Value
 Two main drivers
behind the evolution of
procurement
 Procurements strategic
contribution
 Models of organisation




The negotiation process
Preparation –
At the table…
Communication
strategy
 Personality Profiles and
their consequences
Johari-model
Interest vs. positions
Win-win or…?
Prisoners Dilemma
Preparation tools &
techniques
 Sourcing of Technology,
R&D & capabilities
 Supplier involvement in
New Product
Development
 Different types of early
involvement
 Challenges in NPD &
supplier involvement
 Different types of
involvement in NPD
 Sourcing of R&D
compared to Production
 Case: Sourcing of
Technology at B&O
 Capability Portfolio
Models
 The NPD-process
 Møller´s Portfolio
model
 Supplier involvement in
NPD
 Competence
development
Morten Munkgaard Møller - 8
Evaluering fra andet hold – HD-uddannelsen
Morten Munkgaard Møller - 9
Spørgsmål
Morten Munkgaard Møller - 10