ProcureCon 8th-10th November

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Le Plaza Hotel, Brussels 14th Annual November 8 Procurement risk management focus day November 9 Co-developing with suppliers to achieve true innovation November 10 Managing the cost base in fluctuating markets DELIVER COST SAVINGS AND IMPROVE WORKING CAPITAL TO GAIN A COMPETITIVE EDGE AND ACHIEVE TOP-LINE GROWTH THROUGH PROCUREMENT INNOVATION AND TRANSFORMATION DON’T MISS Procurement Risk Management Focus Day Embedding advanced strategies to anticipate, monitor and mitigate risk Tuesday 8th November 2011 40+ industry thought leaders share with you their latest top-line strategies, with ‘real’ examples of procurement best practice, challenges faced and lessons learnt 21 case study presentations sharing candid insight into what really drives the procurement strategies of the world’s leading corporations 6 KEY strategic and practical takeaways to be provided by each speaker – giving you even more to feed back and implement today! Gold sponsors: Sponsors: Vicky De Baere Purchasing Group Manager, GBS Purchases Procter & Gamble Johnathon Baker Vice President, Global Procurement Starbucks Coffee Company Jean-Francois Baril Senior Vice President, Sourcing and Procurement Nokia Andy Collopy Global Procurement Director BP David Manning Group Finance Director Universal Music Maggie Robinson Procurement Director Mars Adrian Furner Commercial Director of Strategic Capability Solutions BAE Systems Dietmar Harteveld Director Indirect Material North West Europe Siemens Francesco Rizzieri Head of Sourcing Strategic Planning UniCredit Jean Christophe Deville General Manager of Supplier Production Preparation Toyota Motor Europe Peter Wright Global Strategic Sourcing Director Amgen Hear from Europe’s leading CPOs! WWW.PROCURECON.COM The 14th Pan-European Strategic Sourcing Event 8-10 November 2011 Hear expert perspectives Thierry Bellon CPO Air France Pernille Boisen Executive Vice President Global Indirect Purchasing Rolls Royce Charles Letizia CPO Cable & Wireless Henrik Larsen VP Group Procurement Maersk

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Transcript of ProcureCon 8th-10th November

Le Plaza Hotel, Brussels

14th Annual

November 8 Procurement risk management focus day

November 9 Co-developing with suppliers to achieve true innovation

November 10 Managing the cost base in fluctuating markets

DeLiver CoST SAvinGS AnD iMProve workinG CAPiTAL To GAin A CoMPeTiTive eDGe AnD ACHieve

ToP-Line GrowTH THrouGH ProCureMenT innovATion AnD TrAnSForMATion

Don’

T M

iSS Procurement Risk Management

Focus Day Embedding advanced strategies to anticipate, monitor and mitigate risk

Tuesday 8th November 2011

• 40+ industry thought leaders share with you their latest top-line strategies, with ‘real’ examples of procurement best practice, challenges faced and lessons learnt

• 21 case study presentations sharing candid insight into what really drives the procurement strategies of the world’s leading corporations

• 6 KEY strategic and practical takeaways to be provided by each speaker – giving you even more to feed back and implement today!

Gold sponsors: Sponsors:

vicky De Baere Purchasing Group Manager, GBS PurchasesProcter & Gamble

Johnathon Baker Vice President, Global Procurement Starbucks Coffee Company

Jean-Francois Baril Senior Vice President, Sourcing and Procurement Nokia

Andy Collopy Global Procurement Director BP

David Manning Group Finance Director Universal Music

Maggie robinson Procurement Director Mars

Adrian Furner Commercial Director of Strategic Capability Solutions BAE Systems

Dietmar Harteveld Director Indirect Material North West Europe Siemens

Francesco rizzieri Head of Sourcing Strategic Planning UniCredit

Jean Christophe Deville General Manager of Supplier Production Preparation Toyota Motor Europe

Peter wright Global Strategic Sourcing Director Amgen

Hear from Europe’s leading CPOs!

WWW.PROCURECON.COM

The 14th Pan-European Strategic Sourcing Event8-10 November 2011

Hear expert perspectives

Thierry Bellon CPO Air France

Pernille Boisen Executive Vice President Global Indirect Purchasing Rolls Royce

Charles Letizia CPO Cable & Wireless

Henrik Larsen VP Group Procurement Maersk

So, what’s new this year?Dear Colleagues, Now in its 14th year, ProcureCon 2011 has been stripped down and revamped to include only the critical issues affecting CPOs and senior procurement professionals. Last year you asked us to deliver ‘case studies, case studies, case studies.’ So this year, we have revamped ProcureCon to provide 21 procurement best practice, brand led case studies, challenges faced and the lessons learnt. All the speakers have been briefed to share candid insight, to dig deep and share what really drives their procurement strategy. You also asked for practical and strategic takeaway points - so this year, all speakers will provide 6 of their key takeaways for you, giving you even more to feed back to your team and implement when you get back to your desk on Monday!Yours faithfully, ProcureCon Advisory Board 2011

n Jamie Foster, Global Procurement Director, ESAB Holdings Ltd

n Stephen McVey, Global Procurement Strategy Director, Diageo plc

n Erik Dam, Global Purchasing Director – Packaging, The Scotts Miracle-Gro Company

n Thibaut Eissautier, Chief Procurement Officer & Head of Group R&D, Member of the Group Executive Board, McBride Group

n Oliver Cock, Director, Procurement Group, Compass Group

n Herve Menassol, Global Capital Purchases Associate Director, Procter & Gamble

n Giuseppe Conti, Associate Director Services Procurement, Merck Serono SA

n Mikkel Larsen, Procurement, Rolls-Roycen Tim Cummins, CEO, IACCM

8 NOVEMBER 2011 FOCUS DAYEmbedding advanced strategies to anticipate, monitor and mitigate risk

Procuring across multiple geographies, industry verticals and service functions presents a multitude of risks – that’s not taking into account political unrest and natural crises. The Procurement Risk Management Focus Day will showcase 6 case studies of global organisations balancing service delivery risk and return in an increasingly volatile environment. Share, question, debate, then take away practical examples and proven-to-work processes that can be incorporated into your risk management framework.

08:30 Registration and coffee, Chair’s welcome address at 09:1509:30 Strategies to mitigate risks from supply chain disruptions at Toyota › Security of supply – risk management strategies to ensure goods reach the supply chain at the right time,

including contingency plans for extraordinary events (financial risk, social risk and natural disaster risk) › Lessons learnt from recent events in Japan › Frameworks to view and evaluate a macro event from a sourcing practitioner’s point of view - evaluating the

depth to supply chain impacts Jean Christophe Deville, General Manager of Supplier Production Preparation, Toyota Motor Europe 10:00 Contingency planning for the next global crisis to mitigate the impact on your supply chain10:30 Forming effective mitigation plans against exposure to financial and logistical risks from suppliers › Overcoming the challenges of moving from a regionally based procurement organisation to one global team

having a single global approach › Organisational context, approach and key elements to harmonise risk management at Kimberly-Clark James Ratcliff, Director of European Procurement, Kimberly-Clark11:00 Morning coffee and networking11:30 Achieving sustainability and green procurement whilst managing associated risks Les Ball, VP SCM EMEA, Eaton Corporation12:00 Which risk-focused tools and services are cost effective for fast scenario planning? 12:30 Developing the right approach to source goods and services competitively by considering price

volatility and anticipating market movements › Overview of the systems in place at UniCredit to anticipate fluctuations in supply markets and mitigate against

associated risks › What mechanisms and methods are there to control price volatility? The need for flexibility within agreements,

right to vary volumes, flexibility within contracts Francesco Rizzieri, Head of Sourcing Strategic Planning, UniCredit13:00 Lunch and networking14:00 Overcoming the barriers to supplier relationship management at Network Rail › The case for SRM at Network Rail and the barriers faced in terms of processes, people and information › Overcoming the barriers –successes, failures, lessons learnt and next steps Pete Colley, Head of Supplier Development & Commercial Performance, Strategic Sourcing, Network Rail14:30 How the implementation of the HP procurement risk management (PRM) framework has resulted in

savings of over $20M over the past 2 years › Measuring sourcing risks and the pro-active management of these risks using structured contracts and

analytics development › How the HP commodity managers have used the internal frameworks over the past 2 years to save over $20M,

and resulted in 3 patent applications › Future forecast- FY’03 PRM contracts worth over $500M with expected savings of over $40M have been

signed Steve Kakouros, Supply Chain Strategist, Hewlett-Packard 15:00 Afternoon tea and networking 15:30 MASTERCLASS: Best practice in contract compliance to get real value from your suppliers 16:30 Chair’s closing remarks

CASE STUDY

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‘ProcureCon is one of the most focussed meetings I have seen with a very strong agenda.” Giles Breault, CPO, Novartis

9 NOVEMBER 2011 CO-DEVELOPING WITH SUPPLIERS TO ACHIEVE TRUE INNOVATION

08:15 Registration and coffee09:00 Chair’s opening remarks Oliver Cock, Director of Group Procurement,

Compass Group 09:10 Procure-2-Pay: managing tail end spend Vicky De Baere, Purchasing Group Manager, GBS

Purchases, Procter & Gamble Jason Evans, VP Sales – SCM Services,

Corbus09:45 PANEL DISCUSSION: Successfully surmounting

the challenges of cross-departmental collaboration between procurement and R&D to exploit the opportunities of co-developing with suppliers to achieve true innovation

Johnathon Baker, Vice President, Global Procurement, Starbucks Coffee Company

Adrian Furner, Commercial Director of Strategic Capability Solutions, BAE Systems

Thibaut Eissautier, Chief Procurement Officer & Head of Group R&D, Member of the Group Executive Board, McBride Group

Charles Letizia, CPO, Cable & Wireless

10:25 Bridging the gap between finance and procurement: PCF as the universal method for measuring procurement impact on the bottom line

Fabrice Saporito, CEO, Sievo11:00 Morning coffee and networking11:30 PANEL DISCUSSION: Forging and sustaining

a mutually beneficial partnership between the CFO and CPO to leverage individual skill sets and expertise and ultimately deliver measurable value to the business

Maggie Robinson, Procurement Director, Mars Charles Letizia, CPO, Cable & Wireless Thierry Bellon, CPO, Air France Nina Guezennec, Procurement Director,

Orangina Schweppes 12:10 Plan, design and implement a value generating

procurement transformation project that delivers value to the business

Alex Klein, Vice President, Efficio12:45 Structured “speed” networking13:10 Lunch and networking

17:20 Interactive Roundtable Session Managing procurement maturity Karl McEneaney, Head of Procurement,

Capital One UK Indirect spend management: marketing and

professional services Marc Painsmaye, Supplier and Sourcing Development Director, Danone

Energy procurement Gabe Smith, Manager of Client Development, Summit Energy Services Integrating external data Tony Pringle, Regional Managing Director, UK & Ireland, Bureau Van Dijk18:00 Welcome drinks reception and networking 19:00 Conference gala dinner

14:10 Stream Chair: Opening remarks14:15 Putting the role of

procurement into context within a post-M&A integration scenario: lessons learnt from driving procurement efficiencies and synergies from the Air France and KLM merger

Thierry Bellon, CPO Air France14:45 Spend visibility at Royal

Philips Electronics Herke Suhr, Senior Director of

Technology for IT Procurement Philips

15:20 Going beyond savings to revenue generation and making an impact on the top-line

Charles Letizia, CPO Cable & Wireless

15:50 Afternoon tea and networking16:20 Revenue generation -

exploiting underutilised assets to increase your enterprises profitability

Rob Douglas, CPO Dixon Retail Group

16:50 How adopting sustainability at Kone Corporation has generated traction in sourcing activities

Antti Ruutu, Head of NPR Sourcing KONE Corporation

STREAM A: Cost reduction, spend management and revenue generation

14:10 Stream Chair: Opening remarks14:15 Assessing the rationale for

completely outsourcing the procurement function - step-by-step guide of the decision making process, lessons learnt so far and preliminary outcomes

David Manning, Group Finance Director Universal Music

Guy Strafford, Client Director buyingTeam14:50 Building sustainable

competitiveness through partnerships

Jean-Francois Baril, Senior Vice President, Sourcing and Procurement Nokia

15:20 Rio Tinto procurement – our outsourcing journey

Martyn Lawns, General Manager Procurement EMEA Rio Tinto

15:50 Afternoon tea and networking16:20 WORKSHOP: Identifying

which categories you should prioritise in your outsourcing plans to improve operations, lower costs and deliver long-term value

STREAM B: Outsourcing and sourcing strategies

14:50 WORKSHOP: Supply Chain Finance in a global environment - adding value to complex supply chains

What challenges do corporates expect in implementing a Supply Chain Finance Solution and how can they be tackled?

Alexander Mutter, Director, Head of Trade & Supply Chain Solutions Deutsche Bank AG

15:50 Afternoon tea and networking16:20 C-LEVEL THINK TANK Under Chatham House Rule,

this is your chance to network, discuss best practice and benchmark with the leading CPOs and Directors of Procurement across industries. Focus of the discussion will be on the key strategic areas of the procurement function, including:

› Commodities risk management

› Bottom and top line improvement

› Delivering growth through innovation

CPO’s and Directors only To be facilitated by: Erik Dam, Global Purchasing

Director - Packaging The Scotts Miracle-Gro Company

STREAM C: Supply chain finance and C-level think tank

CASE STUDY

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10 NOVEMBER 2011 MANAGING THE COST BASE IN FLUCTUATING MARKETS

08:30 Registration and coffee08.50 Chair’s opening remarks Oliver Cock, Director of Group Procurement,

Compass Group 09:00 EXPERT CPO INTERVIEW CIRCLE: The Roadmap

for Procurement 2020 - analysing future trends for procurement to shape your strategies to become more responsive to change by being agile and flexible

Henrik Larsen, VP Group Procurement, Maersk

Pernille Boisen, Executive Vice President Global Indirect Purchasing, Rolls Royce

Andy Collopy, Global Procurement Director, BP09.30 Latest Trends in supplier relationship

management

Jules Goffre, Vice President, A.T. Kearney10:10 Total spend management - aninnovative

approach to B2B payments

Dennis Bauer, Managing Director, Barclaycard Global Commercial Payments

10:50 Morning coffee and networking

11:10 Purchasing transformation at Goodyear Dunlop EMEA - the rise to advantaged purchasing

Onno Maliepaard, Strategic Procurement Director, Goodyear Dunlop Tires Europe

11:40 Gaining an up-to-the-minute insight into the latest macro-economic trends, with a particular focus on the state of play within the commodities market

Martin Wolf, Chief Economics Commentator, Financial Times

12:10 PANEL DISCUSSION: How to manage the cost base in fluctuating markets to deliver value to your business- commodities risk management, hedging decisions and identifying the best pricing models

Thibaut Eissautier, CPO & Head of Group R&D, Member of the Group Executive Board, McBride Group

Onno Maliepaard, Strategic Procurement Director, Goodyear Dunlop Tires Europe

12:40 Lunch and networking

13:40 Stream Chair: Opening remarks13:50 Talent development – practical strategies to

boost buyer skills to align procurement with business needs and market fluctuations

Jean Godde APJ & EMEA Agency Contractors, Contact Centers Procurement Director Hewlett-Packard Company

14:20 Supply Chain Risk - supplier risk assessment, due diligence and relationship management to prevent supply disruptions

Glenn Edwards Head of Procurement Policy BT

14:50 How does procurement positively influence the internal stakeholder?

Dietmar Harteveld Director Indirect Material North West Europe Siemens

15:20 Afternoon tea and networking15:50 WORKSHOP: Engagement and influencing

- sourcing is the easy part, getting your stakeholders to play is the challenge

Peter Wright Global Strategic Sourcing Director Amgen

16:50 Stream Chair: closing remarks

13:40 Stream Chair: Opening remarks13:50 Indirect spend transformation program at

Firmenich Eric Danjoux-Dichamp, Global Purchasing, Indirect

Spend Director Firmenich

14:20 Supplier information management – certainty in uncertain times

Colin Maund, CEO, Achilles Group Limited14:50 Tools and technologies to embed sustainability

into your global business processes to select your supplier base and influence purchasing decisions that simultaneously achieve economic return and support the green agenda

Erik Dam, Global Purchasing Director - Packaging The Scotts Miracle-Gro Company

15:20 Afternoon tea and networking15:50 PANEL DISCUSSION: Proven transformation

strategies to deliver strategic, agile and responsive procurement capabilities aligned with dynamic business requirements

Oliver Cock, Group Director of Procurement Compass Group

Larry Beard, Procurement Transformation Tate & Lyle

Andy Collopy, Global Procurement Director BP

Pernille Boisen, Executive Vice President Global Indirect Purchasing, Rolls Royce

16:50 Stream Chair: closing remarks

STREAM A: Talent development, stakeholder engagement and supplier relationship management

STREAM B: Transformation, technologies and leveraging a global structure

17:00 INNOVATION SHOWCASE: Save the Day… and the Euro! Join IQNavigator for this session on jump starting your firm’s internal financial recovery • Take away best practices from some of the world’s leading brands on how you too can create huge

savings through the latest innovations in services procurement • Understand the secrets to a successful business case, how technology can help vault your progress and

the power of information (not just data) Brian Owens, Senior Vice President, Market Strategies, IQNavigator

18:00 Close of conference

1-2-1 meetings will run throughout the afternoon giving you dedicated networking time

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Supporting organisations:

“Great networking! Very professional organisation! Finally a Procurement Conference during which you pick up new ideas and you can start implementing once back in the office!” Thierry DeCocq, CPO, DeStar

Sponsors

Sievo is a highly innovative technology provider with a unique offering in the procurement performance management space. By enabling companies to analyze past purchases, predicting future spend and managing procurement savings from idea to cash –all in a fully integrated fashion – Sievo is bridging the gap between procurement and finance functions. Sievo´s 7 Steps Idea-To-Cash process is built upon its PCF© (Procurement Contribution to Financials) model, a formal, universal and fair method for measuring procurement impact to the bottom line. Developed from procurement practitioners for procurement practitioners, Sievo has codified the PCF© model in its Procurement Performance Management technology and provide its clients with an unmatched visual and interactive user experience on their journey to procurement performance excellence. Sievo´s has it global headquarters in Helsinki, Finland and houses operations in France, Germany and Sweden.

Efficio is a results-focused procurement consultancy, with a track record of helping leading organisations achieve more value from their procurement. Whether the challenge is delivering significant savings to the bottom line or managing suppliers to create value for the longer term, Efficio provides a range of client-tailored services including: Procurement Opportunity Assessment, Strategic Sourcing Execution, People and Process Development and Procurement Transformation. Comprised of experienced professionals with a blue-chip consultancy heritage, Efficio combines the credentials of a top tier firm, with the depth of expertise and execution of a flexible niche player. With offices in the UK, Germany, France and Switzerland and a growing operation in the USA, we service clients from a broad range of sectors throughout Europe and the United States.

A.T. Kearney is a global management consulting firm that uses strategic insight, tailored solutions and a collaborative working style to help clients achieve sustainable results. Since 1926, we have been trusted advisors on CEO-agenda issues to the world’s leading corporations across all major industries. A.T. Kearney’s offices are located in major business centers in 37 countries. A.T. Kearney is committed to sustainability and is carbon neutral across its global operations. A.T. Kearney Procurement & Analytic Solutions, a practice unit within A.T. Kearney, Inc., offers clients value-driven services designed to enhance strategic procurement efforts and supply chain transformation. Results achieved include accelerated savings and value creation across the entire organization. Through innovation and growth, risk management, value chain optimization and advanced cost-management techniques, as well as our use of integrated service delivery capabilities, sourcing technologies, advanced analytic solutions, and best-in-class intellectual capital, we help executives transform their procurement and supply chain processes to increase efficiency and effectiveness.

Corbus provides flexible global collaboration solutions around Supply Chain Management Services (SCM/SCS), Business Process Outsourcing (BPO) and Information Technology (IT) to Fortune 1000 companies around the globe. Corbus supports our customers in solving their key pain points: Too many suppliers, lack of purchasing intelligence, lack of parts standardization, no standard naming or commodity codes, lack of spend visibility by supplier, difficulty getting true lowest cost. Corbus creates solutions by combining leading processes and technologies that deliver business value to clients through year-over-year savings. We work as partners with clients to innovate and achieve cost reduction and enhanced productivity. Corbus has a global execution model that enables it to be an end-to-end solution provider for customer needs. Corbus is located globally in North America, Europe, Asia Pacific and the Middle East.

IQNavigator provides software and services that help the world’s best companies manage their extended workforce and procured services in a smarter way — putting the emphasis on “IQ” by giving companies powerful insight into and control over the way they source services and utilize their extensive non-employee workforce. For more than a decade, IQNavigator has been at the forefront of the industry in providing the software solutions and managed services that address issues inherent with services procurement and extended workforce management, turning those challenges into opportunities for companies to become more nimble, reduce risk and save millions of dollars. For more information about IQNavigator and how its industry-leading offerings such as IQNtelligence are helping many of the world’s most respected companies, visit www.IQNavigator.com.

The Corporate & Investment Bank Group Division, CIB, is responsible for Deutsche Bank’s capital markets business, comprising the origination, sales and trading of capital markets products including debt, equity, and other securities, together with our corporate advisory, corporate lending and transaction banking businesses. Our clients are institutions, both public sector entities – including sovereign states and supranational bodies – and private sector entities, from medium-sized businesses to large multinational corporations. CIB is subdivided into Corporate Banking & Securities and Global Transaction Banking (GTB). Our Trade Finance and Cash Management teams (GTB) provide a combination of commercial banking products and services for corporates and financial institutions dealing with the management and processing of domestic and cross-border payments, professional risk mitigation for international trade and asset and liability management. Our customers are supported in their domestic, regional and global trade finance and cash management programs through Deutsche Bank’s extensive global network.

Achilles helps companies to improve their supplier information management. Our range of web-based services identify, qualify, evaluate and monitor suppliers on behalf of buyers’ organisations worldwide. On-boarding suppliers and validating their information throughout the life of the business relationship enables buyers to be better informed in order to make better procurement decisions. Achilles has offices in 22 locations around the world and we actively support over 750 of the world’s largest buying organisations to manage their supplier information. With a global view of the supplier base buyers: have access to accurate and up-to-date information on their suppliers; they can streamline their supplier engagement, standardise their policies and reduce the risk of non-compliance (in areas such as health and safety, quality and environment); and confidently assess the total impact of their procurement decisions.

Bureau van Dijk works with over 100 leading data providers around the world to create information solutions that empower procurement professionals. We cover companies’ financials, what they do, their financial strength and their corporate structures. Create synergy by integrating the information on our products directly into your supplier management system, enriching your data to get valuable insight across your portfolio. Our products empower cost reduction, credit risk analysis and strategic purchasing; improve your supplier knowledge and enrich your intelligence, source new and alternative suppliers; create benchmarks to help your buyers’ decide who to proceed with and create customised risk and spend reports on your supplier portfolio. Our products include: Orbis – 80 million companies worldwide, Amadeus – 18 million companies across Europe, Fame – companies in UK and Ireland. Our new Procurement Catalyst takes the most common procurement questions, and simplifies how you use our data to get to the answers.

Zycus provides integrated, comprehensive yet easy to use spend management solutions to companies who aim to build a world class procurement organization. Cutting edge technology and expertise in the domain has enabled us to deliver millions of dollars in savings. Zycus is a global company with multiple offices in USA, Europe and Asia and more than 200 customers spreading across 20 countries. Most of its customers are Fortune 500 & Fortune 1000 companies. The Zycus suite comprises of solutions for spend analysis, eSourcing, contract management, supplier performance management and supplier information management.

buyingTeam is a procurement outsourcer and solutions provider, bringing extraordinary benefits to blue chip organisations across Europe and North America via an innovative knowledge-based shared services model. Fundamental to our success is how we change the way our clients think about procurement, redefining it as an indispensable strategic tool at the heart of their business. By doing so, we release procurement’s potential to make our clients leaner, fitter, stronger organisations. Having grown at more than 25% a year for over five years, we are now the largest shared services procurement operation in Europe, constantly building and sharing our expertise across hundreds of categories and delivering average savings on total expenditure of 8% - 15% for our clients. buyingTeam works with a diverse range of organisations such as Adecco, AGCO, British Airways, WM Morrisons and Prudential.

Summit Energy provides energy management services to businesses in a wide range of industries, leading companies to cost-effective strategies by providing energy procurement, risk management, rate analysis, demand reduction and sustainability services. Summit manages more than $20 billion in annualized energy spend for more than 650 clients worldwide.

IACCM

Procurement Professionals

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A localised, collaborative supply chain – Toyota’s vision of the future?

When someone talks about ‘locally sourced’ one immediately conjours up images of trendy London boutiques or small organic restaurants. What you don’t think of is one of the most ubiquitous names in the automotive industry. But believe it or not, Toyota take that ethos and expand it to truly super-sized proportions, despite having some of the most complex procurement challenges in the world.

Mark Adams, Vice President of Purchasing at Toyota Motor Europe talks us through the system they employ and the challenges that they face that results in 90% of their cars value being locally procured in Europe for Europe.

How is procurement structured at Toyota?Global Purchasing Division based in Toyota Motor Corporation, Japan, where Purchasing Chief Officer is located. Three regional organisations – based in USA, Europe, and South East Asia, each responsible for procurement for the operations in their respective regions […]

What are the company’s core categories? If by categories, you mean the product groups that we buy, then the answer cannot be concise. We are responsible for strategy and procurement of all components of our cars made in Europe. More than 90% of our cars’ value is locally procured in Europe by ourselves. Everything from complex electronic control modules developed with multi-national suppliers, down to simple presswork and plastic parts supplied by local family companies.

What key challenges are you currently facing? The automotive industry was just recovering from the global financial crisis when the earthquake and tsunami of March 11th hit Eastern Japan. In addition to the immense human consequences, we have seen starvation of some components and materials that were supplied by companies directly affected by the earthquake, tsunami, the nuclear accident, and interruption to electricity supplies. Production volumes of cars have again been adversely affected […]

What do you see as the top 3 challenges facing the procurement function in the next 12 months?After the recovery from the earthquake, I believe that we will be in a fight for capacity at our suppliers. We are sure to try to catch back lost volume, and that will place a deal of pressure on businesses that may be depleted of resources. We must maintain a focus on quality when the volume uplift arrives and green labour walks through the door […]

How mature is procurement in the automotive sector? How can it be improved?The procurement function is well matured, however, that may be seen as a weakness rather than advantage. The process is to some extent locked into a system that requires part by part engineering release followed by part by part supplier selection and negotiation. We need to get suppliers working with us at the very early stages of projects, even before a project is conceived. I can visualise a better system where […]

What are the major lessons for procurement in the automotive sector that have emerged from the recession? We have several lessons. For example, we learned how to function and achieve more with less. Headcount and fixed costs have been slashed while performance remained at target. In Toyota, many people learned to take tough decisions for the first time […]

How do you see the procurement function evolving in the next few years?I see major change coming in the way that we prepare for new projects. Suppliers need to become more self reliant so that we can dedicate a higher percentage of our procurement resource towards value added activity, instead of checking that suppliers have done what they should […]

To read the full interview, go to www.thevaluechain.net

Mark Adams, Vice President Toyota Motor Europe shares Toyota’s latest insight on procurement strategy

Join Europe’s leading heads of procurement for 3 days of high-level discussion, debate, benchmarking and networking. Book early to benefit from preferential rates!

Procurement Professionals

Book BeforeBookings received

before 1st July 2011Bookings received before 26th August

Bookings received before 30th September Final Price

3 Day Gold Package Focus Day, 8th November Both Conference Days, 9-10 November

E1,549 SAVE €E600

€E1799 SAVE €E350

€E1,949 SAVE €E200

€ E2,149

Team Ticket 3 Day Gold Package for 3 people from the same company

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€E4,149 SAVE €E800

€E4,499 SAVE €E450

€ E4,949

Solution Providers, Vendors, Consultants 2 Day Package, conference days only

€E2,299 SAVE €E600

€E2,399 SAVE €E500

€E2,649 SAVE €E250

€ E2,899

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