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Strategic Sourcing Consulting

Strategic Sourcing Consulting. www.procexcellenz.com. 02. Our Value Proposition. 03. Our Firm’s Team capability. Lead Consultant has a 13+ year career at Caterpillar Inc.’s Asia office as a Certified 6 Sigma Master Black (Black Belt) Qualified Lean Black Belt & Champion

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Strategic Sourcing Consulting

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  1. Strategic Sourcing Consulting www.procexcellenz.com

  2. 02 Our Value Proposition

  3. 03 Our Firm’s Team capability • Lead Consultant has a 13+ year career at Caterpillar Inc.’s Asia office as a • Certified 6 Sigma Master Black (Black Belt) • Qualified Lean Black Belt & Champion • Strategic Sourcing and Cost Reduction Consultant • Consulted for Caterpillar’s Asia office and 30+ Strategic Supply partnersover the last 8 years in Supply Chain total cost optimization initiatives • Industries served are Manufacturing, Automotive, Logistics & Transportation, Heavy Industrials, Energy, etc. • Industry Experts for special assignments on call, to deliver superior value and optimize client costs.

  4. 04 What we are hearing from the Market Total Cost of Ownership is important Purchasing has largest potential for impacting Company costs Split focus – Strategic versus Tactical teams Evolving new realities Purchasing competency = Competitive advantage Technology is a critical enabler Supplier Collaboration & Management A singular vision for Strategic Sourcing across the Enterprise

  5. 05 Purchased Goods/Services dominate Cost structure

  6. 06 Strategic Sourcing’s bottom-line impact Impact of Strategic Sourcing initiatives

  7. 07 Strategic Sourcing vs. Tactical Buying - differences Tactical Buying (every day / week) Strategic Sourcing (every 3 to 5 years) Supplier Management (every 3 months) • Volume forecasts • Purchase Order placement and Scheduling • External Logistics • Manage Payables and Invoice grief • Supplier Delivery performance • Spend Characterization • Supply Market analysis • Strategy Development • Supply Base re-shaping • Cost Model development • Negotiation • APQP / PPAP • Review Supplier performance • Manage Supplier relationship • Resolve conflicts • Monitor Supplier marketplace • Capacity planning • Cost Reductions / Avoidances • Ppm / Cpk / COPQ Performance Feedback Voice of Business

  8. 08 Strategic Sourcing is evolving Traditional Purchasing Strategic Sourcing Global Supply Management

  9. 09 Our Strategic Sourcing Roadmap

  10. 10 Deliverables of a Strategic Sourcing project

  11. Companies doing Strategic Sourcing have seen returns between 20x to 1000x+ on their investments over 3 to 5 years 11 Strategic Sourcing benefits - Examples • Raytheon • Had 27,000 to 45,000 suppliers (estimated) • Goal was to reduce by 20% each year • Continues to meet supplier diversity goals, even with supplier consolidation • US Postal Service • Maintenance & Repair (MRO) • 1,000 suppliers down to 2 suppliers • Savings of more than $250M • Walmart • Reduced 500,000 suppliers to 50,000 • $17.8B in cost savings over 5 years • 95% of spend is with 16,600 suppliers

  12. Strategic Sourcing Training

  13. 13 Training Programs - Index

  14. 14 Training Delivery Suite of Options Primary Option (7+ Belts preferred per Session of Training) Secondary / Low Cost Options (1+ to 5+ Belts preferred per Session of Training ) Tertiary / Mandatory provisions

  15. 15 6 Sigma Strategic Sourcing (6SSS) Training • With our Comprehensive Training Program the Candidates will be able to : • Understand the need for change based on Customer, Business, Economic, Commodity concerns etc. • Lead multi-disciplinary Teams to reshape the Supply Base base • Develop Cost Models and Metrics to manage Suppliers • Feel empowered based on facts and data to make changes based on changing face of the market • Influence the leaders of support functions needed for project completion

  16. 16 APQP / PPAP Training • Advanced Product Quality Planning, APQP, is a structured method of defining and establishing steps and expectations necessary to assure that a product satisfies the customer. The goals of APQP are two-fold : • Proactively manage technical risk as products or manufacturing processes are designed or modified • Drive collaboration between design and supply chain partners (both internal and external) at the appropriate times • Production Part Approval Process, PPAP, consists of two primary elements : • Demonstration of APQP or proof of risk mitigation of a design and / or process in support of program objectives • This demonstration of proof provides confidence that the requirements and specifications of a product prior to shipment are met • Documentation to support the demonstration of product and process conformance to requirements and specifications • This documentation details the initial quality level the supply chain has achieved

  17. 17 Total Cost Optimization (TCO) Training

  18. 18 E-Mail: info@procexcellenz.com, procexcel@gmail.com Phone : +91-44-27665665 / Mobile : +91-9677754111 Procexcellenz is a premier provider of multi-channel Consulting and Training Solutions for seekers of 6 Sigma, Lean, Stategic Sourcing, Cost Management and Strategy Planning services.

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