Classification: Internal

Henrik Larsen, Chief Procurement Officer at Maersk

21st November 2019

Sales – reflections from

a procurement

perspective

Henrik Larsen, Chief Procurement Officer at Maersk

21st November 2019

Sales – reflections from

a procurement

perspective

Classification: Internal

Henrik LarsenChief Procurement Officer

Years at Maersk: 1981 – Present

Sales - reflections from a procurement perspective

5 postings around

the world

Sales, Pricing GM Married & two

children

2

Classification: Internal

Connecting and

simplifying

global supply chains

OUR BUSINESS

A.P. Moller - Maersk enables its

customers to trade and grow by

transporting goods anywhere.

Classification: Internal

Now the brutal reality ...!

Sales - reflections from a procurement perspective

Business Impact

Ris

k &

co

mp

lex

ity

CollaborateManage Risk

Manage PerformanceNo coffee

1:10

90%

90%

4

Classification: Internal

Establish Scope, Team &

Goals

Collect & Analyse

Internal Data

Collect &

Analyse Supply

Market Data

Develop Strategy Execute Strategy Implementation

The 6 Sourcing Steps

What you will be facing when “selling”

Classification: Internal

How do we prepare

Preparation is key!Execution can maximize outcome

further

• Know the objectives, goals,

alternatives, and walk-away

position

• Get the strategy right and then

develop the tactics

• Fairness has little place in

negotiations

• Build trust and explore how to

create value (win-win)

• Get the preparation right before

you start

• THEN - leveraging carrots and

sticks to maximize relative gains

✓

Sales - reflections from a procurement perspective6

When you then get to the negotiation table …

Sales - reflections from a procurement perspective

NegotiationProcess

Communication

Commitment

Options

BATNA –Best Alternative to

Negotiated Agreement

Legitimacy or fairness

Relationships

Position

Interest

YoursTheirs

With self(Personality)With others

“What authority is at the table”

7

Classification: Internal

10 elements of effective negotiator – on either side of the table

Sales - reflections from a procurement perspective

Understand human behavior

Be prepared

Can create

relationships

Read the goals of the

other party

Keep calm and cool

Avoid using power to

force results through

Good listening

Communicate clearly

Create the appropriate

atmosphere

Know his/her bottom line

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Some personal experiences – reflections ...!

Sales - reflections from a procurement perspective9

Data! Data! Data!

Monopoly – Making the Pie bigger

No Leverage – Humiliation

Physical Uncomfortable Surroundings

Style Intimidation

Sales - reflections from a procurement perspective

… So what would we like to see?

Tuesday

81%

Big Data

Sales - reflections from a procurement perspective

Classification: Internal

Sales - reflections from a procurement perspective13

Sales - reflections from a procurement perspective

Sales - reflections from a procurement perspective

Classification: Internal

Now the brutal reality ...!

Sales - reflections from a procurement perspective

Business Impact

Ris

k &

co

mp

lex

ity

CollaborateManage Risk

Manage PerformanceNo coffee

1:10

90%

90%

16

Classification: Internal

Sales - reflections from a procurement perspective

… SO WHAT WOULD WE

LIKE TO SEE

– HOW CAN YOU MOVE UP THE

STRATEGY LADDER?Innovation - your R&D

We have the playground – you

have the toys

Insights - data solutions

Market insights

17

Classification: Internal

Sales - reflections from a procurement perspective

WE WANT MORE

THAN A SALES

PITCH

We want your best people working

on our problems/challenges

We want the A-team – not only in

the pitch but throughout …!

We want collaboration

– leaning in ...!

18

Sometimes we just

shut up...!

Sales - reflections from a procurement perspective

THANK YOU

Sales - reflections from a procurement perspective20