Excellence inProcurementAmChamCroatiaSeptember 2022MarkoDerca, Parter&managingdirectorKearneySEEKFARNFY
Objectives forIntroduce Kearney viewon excellence inprocurement. trends and futuretodayoutlookDiscuss challenges you have in procurement. lessons learned. solutionstestedPresent typical elements of procurement transformation project - caseDiscuss possible next stepsWelcomeKEARNEY
FrameworksaddressingAllow us a30 secondProcurement'sadvertisement ...toughestquestionsWe set the industryPurchasingMgmt.DigitalAssessmentrueSRMDisruptiveof ExcellenceChessboardFrameworkProcurementProcurementin ProcurementAssetsstandard forprocurement.1980s1990s2000s2010s201620202021 During the pandemic,Books andwe published 2 bookspublicationsaddressingkeyMASTERSand conducted aexecutive109DisruptivedozenCPO exchangesagenda topicsfocused on top-of-mindINNOVATIONSRMI1topicsThe PurchasingTheCPOSupplierDisruptiveDigitalProcurementInnovationProcurementNotExhaustiveCPOAgendas,RoundtablesandEventsExampleJune23,0202720219AprApril 28May 27OctMarch4,Date202020212022ics discussTopicTakingAreyouShitingResillenceESGandChangingPrioritifroStockfor2022Diversitycalls in the USAcceVerationPandemicOffensemonthsfocus3KEARNEY
Why are we talking about Third Party Spend?Creating opportunities and need for advanced procurement capabilityKey Challenges-varies by industryChallengesfrom... RequirenewtypesofTHEBIGGESTall sides...OPPORTUNITYcollaboration acrossthe enterpriseMacroeconomicdisruptionsResiliency-alterative supply sources, tensionThird party spendisthe bigestcostFragilesuply chansexacedaed y popolicalelementaspercentageofrevenueforbetween cost and risk.nsions and war, Covid resurgence.Inflation-supplyshortages&risinginput pricesmost companies.Commoditv inflation.Technology-emerging technologies, big data,Optimizingthisspendisasignificant,Long-term natural resource challenges.roboticssourceforcompetitive advantageshat we call 3- PartyEconomicsCitizenshipredefined -Heghtened foaus on,(3PE)Evolvingconsumersextended coporate foprint (ESG impacl), More purpose driven,desite for sustanable,NASCARmeetsF1-emphasisonbeingnimble,goods & services. Changing channel dynamicsand quick vs. steady and consistentConsumerFocus-all parts of organizationchallenged to create consumerbenefit(avg-)55%ChangingBalanceofPowerSupplyconsolidationleadina toincreasedsuppliencollaboration outside the organizationCrossindustryMulti-tiered supply base-mega-suppienpower and oligopolistic market structure across theaveragesvalue chain.managemntandiffrentated SRMstrategy,Manuf. goods30%ComplexOperatingModelsServiceintability formanagingthirdpartyCulture of conectivity -igia aceleration,industriesenables"quantum"organizational solutionsspend and suppliers.Mixedcross-BUcolaborationslowingdown,rathrthan beiga setof tols and systems.innovation
RegionalCurrently most important impact on"Ibelievethatcompared toprocurementprocurementprocurement costs, the followingfactorsare more important"organizations are% of comparies agreeing with the statement.focused onWar in Ukraine50%Risk management98%managing risk andCovid-1929%Talent&attracting talentknowledgemng.8...