Procurement Risk Management at Hewlett Packard
Patrick Scholler, Procurement Director
HP

Risks are always around the corner for supply chain professionals. Some risk result from unpredictable events, others are structural uncertainties. The Procurement Risk Management (PRM) Group at HP has developed and implemented a framework, business process and tools to mitigate the impact of supply chain risks. The PRM framework involves quantifying uncertainty over product demand, component cost and availability to make sourcing decisions and elaborate structured contracts that will secure supply, reduce cost and improve product margin predictability.

In this presentation you will learn:

• How demand/availability/material-cost risks impact the supply chain performance
• How to measure and manage supply chain risks
• How to make cost savings from uncertainty management

Winner of the ELP Award for Innovation
The judges said: "It's a breakthrough in risk management which has incorporated sophisticated tools such as scenario planning and econometric modeling into an approach that procurement professionals can use"

• Context of IT outsourcing at ING
• Concepts of a new Service Integrator Model (2IM) – Overcoming the challenges of bringing multi-sourcing under control and meeting set goals for cost efficiency, agility and growth
• New Organisation - Developing the right organisational culture and processes to succeed in a multi-sourcing structure
• Transition to the Integrator Model - Principles and tactics to gain maximum benefit in a multi-provider outsourcing configuration

With the aim of improving group-wide performance of its top suppliers, Deutsche Post World Net developed and successfully implemented the “Corporate Supplier Management Model (CoSMo)”. CoSMo ensures a standardised and interdisciplinary approach for supplier rating and development right across the DPWN group, delivering substantial value to its supply chain.

In his presentation, Dr. Stefan Zeisel will present around the following:

• The Supplier Management approach & process
• KPI`s and benefit tracking
• Lessons learned and outlook

Sustainability in the Country of a Million Truths
Ismo Ojanen, Director Marketing Sourcing EMEA
Nokia

Drawing on his 10 years experience of working in China , Ismo will give us his insight into doing business in this region by providing a practical view on what is a realistic expectation of what can be achieved.

On the subject of Sustainable Sourcing, Ismo will look at:

• How sustainability applies in the context of sourcing in China
• How to avoid pitfalls by highlighting the “do’s” and “don’ts of sourcing in China ”
• What cultural differences need to be considered and, in what ways they affect the sourcing and relationship building process

13:20

Best Practice - SESSION A
Sustainable Procurement - “Well done Procurement! Great job...now, what’s next?”
Stuart Dodds, Principal, Efficio Limited
David Fallon, Senior Manager, Efficio Limited

Delivering continual value to the business is an ongoing challenge for many procurement organisations regardless of industry. Whether this is opening doors into virgin territory or delivering a new service to current stakeholders, there are similar challenges. The need to have the right blend of processes, tools, skills and internal / supplier relations is seen as key to creating this platform to generate and deliver value over and above strategic sourcing.

Join Efficio for a lively debate, with practical examples on how we have supported a number of clients in opening closed doors, delivering continued success, often in less familiar areas, while at the same time creating a platform for sustainable value delivery.

Case Study - SESSION D
The future of the NPR procurement organisation
Rene Reumkes, CFO, Philips General Purchasing

Over 15 years companies are working on optimizing the “Non product related” procurement organisation. A generic Category Management approach for similar for all spend categories (one size fits all) is seen as the better solution for NPR.

The “Future of the NPR procurement organisation” study conducted by A.T. Kearney in early 2007 shows that leading companies are looking into more specific solutions and governance structures per category.

The presentation will provide you with:

Outsourcing Roundtable - SESSION G
Realising value and accelerating the outsourcing process:
Morgan Chambers, an EquaTerra company
Facilitators:
David Downs, Principal Consultant, Morgan Chambers and Head of the European Leaders Network Outsourcing Knowledge Group, Martin Laurent, Purchase Manager, Atlas Copco and Dirk Karl, CPO, ING.

In today’s fast paced business environment procurement directors and function heads are often required to accelerate the sourcing process, but what are risks?

Once you have signed an outsourcing agreement, how do you understand and ensure the realisation of benefits?

This interactive roundtable will discuss and share best practice on:

• Accelerating the sourcing process – benefits and risks
• Understanding, and realising value from your outsourcing contract(s)
• The role of procurement in outsourcing deals

14:25

Best Practice / Case Study - SESSION B
IT & Telecommunication in procurement
Wolfgang F. Grassl, Principal,
BrainNet Management Consultants GmbH

Over the last decade phenomenal IT progress has obliged the IT departments of organisations to react constantly to changes in order to remain competitive.

The challenge of permanent changes has also impacted IT-Procurement.

The requirements facing IT and IT-Procurement increase as more IT-Systems become vital parts of an organisation's value chain.

How are procurement leaders approaching these challenges and what strategies should they adopt for the future?

In this presentation BrainNet will show how a CPO / CTO (out of Best-Practice-Projects) can face the challenges of dealing with increasing complexity without increasing IT budgets.

The question of what the best of breed approach could look like in order to take future hurdles will be addressed.

Various solution approaches are discussed:

Case Study - SESSION E
Transforming the Supply Management Organisation – Strategy & Key Enablers
John Webster, Head of Product Marketing, Emptoris
Tim Green, Head of e-Supply Chain, Vodafone Group
Tim Williams, Head of Supply Chain Strategy & Change, Vodafone Group

Delivering share-holder value via organisational transformation – during this presentation, Vodafone will discuss the structural change, process transformation and enabling technologies leveraged by Vodafone’s Global SCM organisation to achieve world-class procurement.

By attending this session, attendees will hear:

Emptoris will also share insights as to how European organizations are embracing Spend Analysis, Sourcing, Contract Management, Supplier Performance & Compliance solutions to help deliver and sustain competitive advantage.

Procurement Talent Roundtable - SESSION H
The need to move from “Farming“ to “Hunting“ for Talent
Facilitators: Christopher Barrat, Chair & Sammy Rashed, Head of Sourcing - Global Sites, Novartis

As procurement is becoming more visible and powerful within organisations, there is an increasing and urgent requirement for highly skilled purchasing people who can capitalise on the opportunity for procurement to grow and become one of the key functions. If purchasing does not take up the challenge, it will miss the train and risk being a more tactical than strategic function.

This roundtable builds on the outcomes of the previous roundtable at ELP London 2007 focusing on:

• Attracting new talent, internally and externally
• Coordinating global recruitment standards
• Using innovative assessment and development techniques to find the 'right skills' for the 'right job

Case Study – SESSION F
The Success of France Telecom Orange ’s Sourcing University
Francois Brejoux, Head of Sourcing Transformation, France Telecom Orange

With €18 billions purchasing spend and a global sourcing headcount of 1,000 France Telecom Orange set up in 2003 a Sourcing University to enhance the skills and sourcing techniques of its 700 buyers working all over the world.

In 2006 the SU team has reviewed its strategy to meet the new group challenges: dedicated training space, content review and repackaging, pedagogy enhancement, content owners and trainers networks, business school certification, new training modules as project sourcing or sustainable development, new methodologies developments as Outsourcing or Supplier Relationship Management.

More than 800 people have now received full training from 50 internal trainers over 2,000 days in 11 countries and 5 languages.

In this presentation you will:

• Learn how France Telecom Orange  meats his challenges by setting up the Sourcing University and how it restructured its training organisation.
• Learn how the Sourcing University has become a real transformation enabler in all the Group’s major locations around the world, with the support of the top management

Winner of the ELP Award for People Development
According to the judges, France Telecom’s skills development process went well beyond training for the sake of training. “France Telecom has seized the opportunity, has leveraged the existing infrastructure and has executed the new programme brilliantly."

Epson’s Commitment to Global CSR Procurement
Yoshihiro Ohno, General Manager, CSR Promotion Trust-based Management Department
Seiko Epson Corporation

In 2005 Epson defined its expectations of suppliers in "Epson Group Procurement Guidelines" and "Supplier Evaluation Criteria. Epson reviewed their evaluations of suppliers and improvement activities, and promoted the application of uniform standards and evaluations for all suppliers around the world. Specifically, Epson revised evaluation items on their checklist, adding CSR items in line with their Procurement Guidelines, and established a system to conduct a series of activities including self-evaluation by suppliers, audits by Epson, and cooperative improvement activities on a regular and continuous basis.

This presentation will describe:

Chairman’s Review
Christopher Barrat, European Leaders In Procurement

In this presentation Christopher will bring together the key findings from the day’s presentations, case studies and workshops. He will discuss the key take away actions and highlight techniques put forward by the different presenters, whilst also answering some of the key questions raised during the day.