COMMUNIQUER UNE STRATEGIE ACHAT FAMILLE

NOM DE LA FAMILLE DACHAT

SOUS-TITRE

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MAY 2015

Commodity Market Strategy

1.
2.
3.
4.
5.
6.

Internal Context & Needs

Worldwide Market analysis
Targeted strategy
Suppliers Qualification, Process & Cost comparison
The Panel
Action Plan

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MAY 2015

1. Internal Needs
Turnover, quantities, technologies involved, shares by sub-families and sites

Segment description

Segment 1

Segment 2

Segment 3

(Country)

(Country)

(Country)

Segment Characteristics

Shares of the family (%)

Yearly growth
Turnover
Users

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MAY 2015

1. Internal Needs
Specifications / Product / Service production:
- Technology changes to come / Specific quality & logistic requests
- Significant quantity changes for specific components or services
- Out sourcing trends, Purchase to be done in LCC (targeted market share )

Id

Key drivers

Order to Disposal

Leverage vendors lower cost structure

Leverage vendors technology expertise

Leverage vendors process expertise

Executive mandate to cut costs

Free up internal resources for more strategic processes

Shedding non-core operations

Cut the number of people on the payroll

Leverage vendors re-engineering skills

Remove fixed assets from our balance sheet

10

Could not handle the spikes and drops in processing volume

Source: Forrester

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Comment

MAY 2015

2. Worldwide Market Analysis

Companies, current and new technologies & services involved
Current main suppliers and new comers
Level of turnover per purchasing families and areas
Supplier news and financial situation

Segment 1: ..........

Top 5 suppliers:
Supplier 1:

Segment 2: ..........

Top 5 suppliers:
Supplier 1:

Segment 3: ..........

Top 5 suppliers:
Supplier 1:

Turnover,

Turnover,

Turnover,

Net result,

Net result,

Net result,

Employees,

Employees,

Employees,

Growth,

Growth,

Growth,

Geo coverage

Geo coverage

Geo coverage

Supplier 2

Supplier 2

Supplier 2

Supplier 3

Supplier 3

Supplier 3

Supplier 4

Supplier 4

Supplier 4

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MAY 2015

2. Worldwide Market Analysis

Companies, current and new technologies & services involved
Current main suppliers and new comers
Level of turnover per purchasing families and areas
Supplier news and financial situation
Level of turnover per purchasing families and areas
Key Trends in the Market

Political
Political

Economic
Economic

Social
Social

Technology
Technology

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MAY 2015

2. Worldwide Market Analysis

Cost drivers / Typical cost breakdown :
- Which parameters push price evolutions and trends
- Currency, Volume and Raw materials impacts
- Typical cost breakdown
Cost drivers & Breakdown

Supplier Sourcing & Access to Market

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MAY 2015

2. Worldwide Market Analysis

Cost drivers / Typical cost breakdown :
- Which parameters push price evolutions and trends
- Currency, Volume and Raw materials impacts
- Typical cost breakdown

Fixed specification for transactional external

solicitors work

Service Levels agreed for external solicitors

Renegotiate deals with suppliers e.g. rebates and

indemnity limits
Develop strong relationships with preferred suppliers
Establish incentives contracts
Fees tied to work type e.g. fixed for transactional, value
based for litigation

Collaboration with other Business Units or

countries
Implement framework agreements with QCs

Competitive tendering.
Leverage scale to improve quality and
commercial benefits

Policy on use of Legal Services in order to

reduce maverick spend and exposure to
risk

Balance work completed externally vs.

internally

Manage demand for varying types of work

Channel non-compliant spend

through approved list
Allocate preferred suppliers
for different types of work

Manage relationship and associated risk of advice

Re-engineer processes

Share legal advice for potential duplications e.g.

Same kind of issue for different entities

Negotiation of charges prior to work commencing

e.g. Fixed fees for small and routine cases

Review payment process

for solicitors, expert
witnesses and expenses

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Source: Stakeholder Interviews,12/2005 02/2006; Cap Gemini Analysis,-10/2005
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Consolidate invoices
Standard terms and conditions and discounted
pricing for all activities by each supplier
Clear charging mechanisms
8

MAY 2015

3. Suppliers qualification process, cost comparison

Qualification and evaluation process for suppliers all purchasing parameters combined
Supplier mapping versus key needs / internal constraints

Key needs / internal constraints

Weight

Supplier 1

Supplier 2

Supplier 3

Supplier 4

Supplier 5

1. Area of Expertise
2. Internal knowledge
Shared

3. Key Account Manager

4. Capabilities
5. Number of expert
6. Prices

Customer
specific

1. France
Geo specific

2. Europe
3. World

Total

Out of 5

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MAY 2015

3. Suppliers qualification process, cost comparison

RFQ and current main products price comparisons, current suppliers and worldwide offers
Benchmarks with external buyers in terms of prices
Strategic levers to reduce costs

Potential
Saving

Strategic levers to reduce costs

France

Europe

South
America

North
America

Asia

1. Benchmark rates
2. Billing models
Tender for panel

3. Contractual terms
4. Supplier performance
5. Volume rebate

Management of
disbursements

1. Standardise policy
2. Define reporting process
1. Agree billing rates

Define and
standardise
delivery

2. Identify key suppliers

3. Review scheduled
4. Process for forecast
5. Design procedure
1. Corporate validation

Channel external
spend to in-house
or approved
suppliers.

2. Compliance policy
3. Implement reporting
4. Highlight non-panel spend

Total

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MAY 2015

4. Targeted Strategy
Internal SWOT analysis

Strengths
Strengths

Weaknesses
Weaknesses

Opportunities
Opportunities

Threats
Threats

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MAY 2015

4. Targeted Strategy
Explanation of Strategy : needs, market situation and cost comparison
Risk evolution in terms of supply failure
Aiming number of suppliers by type and segments

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MAY 2015

5. The Panel
Panel and not Panel suppliers, A, B, C + Area status, In/out Panel versus previous strategy

Definition
February
2010

Tender
March
2010

Negotiation

Shortlist
April
2010

Supplier
Del
VS Technology
Groupe Park CO
Industry
H3 Technology
Varitronix France
LTD
EPIQ
Pantene
Gerhard Kurz GMBH
EPCOS
Telefield LTD
EM Microelectronic
Choon Nang Elect.
Sanwall MFY.
Electric
APPLI.
Global CircuitLTD
Products
WeiMao CO LTD
Shenzen Moso
Deka Elektronik
Power
Supply LTD
Simplastic
STI
Sagem
Atelier Protege
Wah Hing

9
1
2
7
1
1
6
7
2
8
0
3
4
6
68
1
9
1
8
19
3
8
4
7
47
5
19
5
1
1
07
1
3
6
9

Transformer Mfy LTD 6

0
6
9
1
3

Targ
et
savi
ngs
Elec
troni
c ()

Savin
Include
gs %
d in
1,6
vs TO
budget
2,8
%
%
3,2
58
2,4
%
000
4,8
%
%
4,0
2,4
%
%
6,0
0,0
%
2,8
%
0,0
%
0,0
%
%
58
000

92
17
10
66
67
63
89
18
86
19
1
5
14
-4
13
18
75
79
-0
-1
5
11
35
73
-6
-9

Targe
t

May
2010

Decision

June
2010

51
-1
-11
3

Definition:
Current
situation
Needs
Constraints

XX consolidated
suppliers

Meet Suppliers &

Launch Tender
29/03/2010

XX invited
suppliers

Shortlist
suppliers
30/04/2010

XX suppliers in
the shortlist

Net saving
k
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Quality test and

internal validation
Meeting with
internal
customers
19/05/2010
Price
Negotiations

XX invited suppliers

2010

2011

k
13

Panel Definition
PANEL A

X suppliers

MAY 2015

5. The Panel
Strengths and weaknesses of Panel suppliers
Panel suppliers vs. strategic levers
Suppliers know and How per technologies or services

Supplier 1

Strengths

Weaknesses

Opportunities

Threats

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MAY 2015

5. The Panel
Strengths and weaknesses of Panel suppliers
Panel suppliers vs. strategic levers
Suppliers know and How per technologies or services

100%
Remove

Potential

Panel

Capabilities

Cost
Cost competitiveness
competitiveness
Compliance
Compliance with
with needs
needs
commitment
commitment
Financial
Financial health
health
Ability
Ability to
to work
work on
on aa
partnership
partnership process
process
Reporting
Reporting

0%

Competitive levers
Volumes
Volumes purchased
purchased

Mix
Mix of
of services
services

Quality
of
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ofservices
services
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100%

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MAY 2015

5. The Panel
Current and targeted suppliers turnover and market shares
Suppliers know and How per technologies or services
Suppliers turnover and weight, Supplier Evaluation, Purchasing contract signed, ISO 14001, ECO V7,
Payment terms

Supplier1: ..........

Supplier1: ..........

Supplier1: ..........

RADAR

RADAR

RADAR

Turnover,

Turnover,

Turnover,

Internal Weight

Internal Weight

Internal Weight

Net result,

Net result,

Net result,

Payment terms,

Payment terms,

Payment terms,

Certifications (ISO)

Certifications (ISO)

Certifications (ISO)

Employees,

Employees,

Employees,

Growth,

Growth,

Growth,

Geo coverage,

Geo coverage,

Geo coverage,

Contract timeline.

Contract timeline.

Contract timeline.

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MAY 2015

6. Action Plan
What Who When in order to match the targeted strategy and the Panel

Q1 2010

All
segments

Q2 2010

Q3 2010

Q4 2010

2011

2012

Worldwide Panel Communication

Legal and Purchasing Dpt Control
Legal Control
New Tender
Panel Implementation

France

Quarterly Review & Adjustments

SPR
SPR

Europe

Panel Implementation

South
America

Panel Implementation

Control

Control

North
America

Panel Implementation

Control

Control

Asia

Panel Implementation

Control

Control

Activities

Milestones / Key events / Key planned achievements

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Saving milestones
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MAY 2015

6. Action Plan
Aggregation / Standardisation / Globalisation / Total Cost of Ownership / Other levels
Main savings to conduct, Easy track extract

Impacts on Value Chain / Cost Structure

How to leverage?

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Expected savings

Key Success Factors

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MAY 2015