Achieving World Class Supply Management- As Easy as A, B, C (No Really!)

1
Achieving World Class Supply Management- As Easy
as A, B, C (No Really!)

• Dr. Peter OReilly, C.P.M.
• Associate Vice-President
• AMERIGROUP
• 516-334-5138 drpor_at_aol.com

2
Definition of World Class Supply Management

• Being responsible for 90 of all global spend
• Use of E-Procurement System and supporting
  software packages to process more than 75 of all
  spend
• Achieve in excess of 90 of good to excellent
  grades in customer surveys
• Attaining more than 51 savings to cost ratio
• Have a dynamic professional development program
  for supply chain staff
• Participate regularly in customers planning
  sessions and have customers join in supply
  management planning sessions
• Having a leader with a vision and a plan

3
Why Take on the Challenge of Achieving World
Class Status?

• Provide Competitive Advantage for Company
• Opportunity for Personal and Professional Growth
• Survival of the Fittest
• Have some Fun

4
Pitfalls of the World Class Journey

• Lack of resources
• Weak support from senior management
• Not up to the challenge
• Other priorities
• No time for fun

5
Strategic A Factors

• Associates
• Attitude
• Analytical Skills
• Assertiveness

6
Strategic B Factors

• Business Planning
• Bottom Line
• Be Believable
• Be a Winner

7
Strategic C Factors

• Customer-driven
• Change Management
• Communications
• Credibility
• Cost Reductions
• Computer-related Tools
• Chief Purchasing Officer

8
Matching up the definition of World Class Supply
Management with the A,B,Cs

• 90 Global Spend- Attitude, Analytical Skills,
  Assertiveness, Business Planning, Bottom Line,
  Cost Reductions, Computer-related Tools
• 75 E-Procurement Spend- Analytical Skills,
  Business planning, Bottom Line, Change
  Management, Cost Reductions, Computer-related
  Tools
• 90 Customer Satisfaction- Associates, Attitude,
  Business Planning, Believable, Customer-driven,
  Change Management, Communications, Credibility,
  CPO

9
Matching up the definition of World Class Supply
Management with the A,B,Cs

• 51 Savings Ratio- Associates, Analytical
  Skills, Assertiveness, Business Planning, Bottom
  Line, Change Management, Cost Reductions, CPO
• Dynamic and Professional Staff- Associates,
  Attitude, Assertiveness, Business planning,
  Believable, Be a Winner, Customer-driven, Change
  Management, Communications, Credibility, CPO
• Leader with a Vision and a Plan- Attitude,
  Assertiveness, Business Planning, Believable, Be
  a Winner, Customer-driven, Change Management,
  Communications, Credibility, CPO

10
Lessons Learned

• Lofty ambitions are fine, but lofty results are
  finer
• Make it a team effort but merely a supply
  management initiative
• Do not expect too much quickly
• Be responsive to changing factors
• Be resilient and flexible
• Frequent victories are welcomed by all

11
Final Thoughts

• In most cases, the processes involved in
  achieving a world class supply management
  organization are as important as the results, as
  they become the foundation for long term growth
  and for generating a constant source of
  opportunities for the company.