Presentation Transcript

1. Building a Corporate Supply Chain platform
2. Who we are …… áREA COMERCIAL UNIDADES CORPORATIVAS DE APOYO
3. Delivered Value
4. Differentiation
5. Magical experiences
6. Business Model
7. Tourism mix
8. Experiencias Xcaret: Market Share 2010
9. Prioritize top OEM/MRO commodities Category profiling Total Spend analysis Negotiation Implementation - deployment Building a Corporate Supply Chain platform Define corporate team and roles Define plan and scope Initial focus on indirect goods and capital investments(not services) Standard codification system to classify sku´s Spend analysis on commodities/categories (80/20) Identify high potential savings commodities Define negotiation approach to supplier Volume Leverage Centralized solution with local execution Work process flow
10. Launching a corporate sourcing process Goods & Capital Management Performance Implementation Build structural platform Define segregation process Use an standardized classification code Prioritize high spending categories Global solution with local execution Initiate sourcing process focusing on “speed to cash” Look for new solution for CNT reduction
11. Unbundle contracts Unbundle contracts Consolidate suppliers Consolidate suppliers Leverage Leverage Combine with other materials Combine with other materials market market power power Compare across facilities Compare across facilities Try out new suppliers Try out new suppliers Eliminate middle person Eliminate middle person Reduce Reduce Reduce custom products Reduce custom products purchase purchase Increase purchase quantities Increase purchase quantities Standardize Standardize price price Increase use of components/ Increase use of components/ subassemblies subassemblies Tighten Tighten Set correct Set correct product product tolerances tolerances Loosen Loosen Revise specifications Revise specifications Substitute Substitute Make changes Make changes Usage of all levers to reduce purchase price
12. Diagnostic Overall approach structured according to waves July 2011 December 2012 December 2011 Pilot results will define strategy for following waves Pilot Top 3 Categories Wave 1 Next Categories Wave 2 Next commodities
13. Example of Category Spending Matrix Meat & Poultry 4.9 MUSD 80 skus + Seafood 1.9 MUSD 46 skus Pilot Groceries 1.2 MUSD 95 skus Produce 0.6 MUSD 60 skus Cleaning solutions 0.6 MUSD 40 skus Bakery 0.5MUSD 65 skus Value Specialties 0.4 MUSD 25 skus Oil 0.4 MUSD 10 skus _ _ + Complexity
14. Levels of consolidation on purchases Leader Requirements Corporate Consolidation Deployment of initiative Direct involvement of top management Multidisciplinary team effort CEO High Agressive Direct involvement of area managers Establishment of agreements for consolidation Interdisciplinary team effort Business Unit Consolidation General Manager Moderate Direct drive Establishment of criteria for consolidation Internal team effort Area Consolidation Low Area Manager Conservative
15. ImplementationMethodology Categoryselection Bidlaunch Bidreception Bidevaluation Highvolume & turnovercategories MRO Office supplies IT equipment Costreductionmonitoring Performance metricsevaluation Agreementadministration Project team conformation Demandtrends and consumptionpatternanalysis Purchasingmodels Standardization of specification Marketintelligence: Capacities Price history Supplier´slocation Define Bidstructure Timeline and responsibles T&C revision Agreement Follow up metrics
16. Project resources needed Dedicated resources are needed to guarantee speed to cash Look for practical approach at all stages Standardized code makes classification complicated and difficult for consolidation OEM/Brand classification facilitates consolidation, spend analysis and negotiation with vendors Spare parts standardization requires a separate project Standardization requires technical validation and may delay “speed to cash” Define clear rules and communication channels for data management
17. Pilotconsolidationresults Achievedaveragesavings of 10-15% per category Increasecreditleveragefrom 15 daysto 60 days Reduced 50% Supplier base byvolumeconsolidation ImprovedSupplier performance drivenbyevaluation Estimatedpotential of 15-20% inventoryoptimizationthrustandardizationbetween BU.
18. Productivity2011 29% 37% PO l i nes IncomingAvg: Janto July = 10.7 & Augto Dec= 13.8 (orange line) ProcessedAvg: Janto July = 10.2 & Augto Dec= 14.1 (green line)
19. Collaboration in SCM……….. All companies are different. They may sell the same products and services to the same people in the same volumes. But it is the very culture of companies that dictates how this is done.
20. Thankyou Felipe Fernandez SupplyChain Director ffernandezc@experienciasxcaret.com.mx