Sourcing

Copyright © 2011 IAOP. All Rights Reserved.

Sourcing Competence Center 2.0: Saving Costs Using eSCM-CL

Henk GrevelmanDirector IT Strategy & Governance

Achmea Insurance

Arno IJmkerManaging Partner

Quint Wellington Redwood

www.IAOP.org

The 2011 Outsourcing World Summit®

Renaissance Esmeralda Resort Indian Wells, California February 21-23, 2011

Copyright © 2011 IAOP. All Rights Reserved.Copyright © 2011 IAOP. All Rights Reserved.

SESSION OBJECTIVES

1. To show the business benefits of Achmea’s sourcing approach for your own organization

2. To give insight why Achmea decided to set up a Sourcing Competence Center using eSCM-CL as a framework

3. To show how Achmea implemented this within a short time frame using a project approach

4. To demonstrate the clear results from this project (decision tree and cookbook)

5. To share the lessons learned from the project


AGENDA

Achmea Insurance

Outsourcing at Achmea

eSCM-CL

Sourcing Competence Center

Implementing the cookbook

Benefits and results


ACHMEA INSURANCE

Achmea is the Dutch subsidiary of Eureko, a private company with limited liability. Its statutory seat is in Amsterdam, The Netherlands.

Main shareholders are unlisted European companies and associations with cooperative roots.

Achmea, established in 1881, is the umbrella brand for some of the best-known names in Dutch insurance

More than 4.7 million people are insured with Achmea for health insurance

Achmea has 22,000 employees

Insurance premiums: € 19,6 billion in 2009 (Eureko)


OUTSOURCING AT ACHMEA

Large parts of Achmea’s IT Infrastructure has been outsourced

Several initiatives for Application Outsourcing are executed (e.g. SAP)

Several business division have taken initatives for Business Process Outsourcing as well

Main vendors: Getronics, IBM, Accenture, ATOS Origin, KPN Telecom

Strong need to align sourcing initiatives and to bundle knowledge of sourcing projects and sourcing governance

Procurement and vendor management to work together on creating a new Sourcing Competence Center: One reference model

Implementing Sourcing as a standard process

Using best practices


WHAT IS eSCM-CL?

Collection of 95 practices

‘best practices that are associated with successful sourcing relationships’

Structured by three dimensions

1. 17 Capability areas

2. Sourcing life cycle

3. Capability level


eSCM-CL OVERVIEW


QUINT’S eSCM PERSPECTIVE

Ongoing

Analysis Initiation Delivery Completion

Copyright © Quint 2010


eSCM-CL PRACTICES

Phase Total eSCM practices

Selected practices for Achmea

Ongoing 50 19

Analysis 9 9

Initiation 20 20

Delivery 11 11

Completion 5 1

Total 95 60

Ambition: Analysis and Initiation phase on level 3, others on level 2


SOURCING COMPETENCE CENTER

Using eSCM-CL as a reference model

Not aiming at certification, rather than using best-of-class practice and templates of Quint

A Down to Earth implementation

Both ‘what’ and ‘how’ and providing practical tooling

Sourcinginititiative

eSCM toolboxdevelopment

Quint bestpractices

Achmea standards & best practices

Analysis Initiation

Definition Development Implementation


To control all aspects of the Sourcing Life Cycle, by: Consulting and guiding Sourcing topics using a standardized

reference process + tooling Getting and keeping grip on all new Sourcing initiatives Developing Strategic Vendor Management as a management-of-

change tool in order to accelerate transition within Achmea

Final results: A Cookbook with a standardized (repeatable) way of working Supported by standard templates en tooling All dimensions of Sourcing to be covered, including management

Control by: All steps in the reference process are mandatory Management by a sourcing steering committee

Support, expertise and management on processes by the Sourcing Competence Center)

OBJECTIVES AND RESULTS

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Create ownershipfor each eSCM area during the project and in the next phase, while implementing the Sourcing Competence Center

A wider implementation in the “Sourcing Community” by applying the new standards at new sourcing projects and by active auditing by the Sourcing Competence Center

Other stakeholders, like “business”, will be involved in the execution and will be informed on a high level about the proces; they are not “users” of the cookbook

HOW TO ACHIEVE?

IMPLEMENTATION STARTS AT THE CORE...


By using the cookbook, eSCM and the tooling, there is strong foundation for a better Sourcing organization

Quality and maturity of “Sourcing Community” increases, by pro-actively focusing on added value of new Sourcing projects

Added value of ICT services will increase by effective Souring

HOW TO ACHIEVE?

... BUT HAS TO CREATE ADDEDVALUE FOR THE BUSINESS


<tekst>RESULTS AT ACHMEA


PROVIDING A COOKBOOK


WHY A COOKBOOK?

But how to use it for a big party?

It does not facilitate

people who don’t like

cook books

A normal cookbook we

all know

We all hope to be a TOP chef


FINAL RESULT

OngoingOngoing


OngoingOngoing


Sourcing Reference Process

PracticeSheets

HulpmiddlenTooling

eSCM WIKI Sharepoint

The Cookbook v 1.0


SOURCING LIFE CYCLE BY eSCM

OngoingOngoing


OngoingOngoing


Verkenning En Besluitvorming

start Sourcing initiatief

Assessment Decision making To start Sourcing

initiative

Selectie, Contractingen Transitie

Selection, Contracting

and Transition

Uitvoering Overeenkomst onder regie van

Achmea

Executing The Contract Managed by

Achmea

Beëindiging Overeenkomst en Exit transitie

Ending Contract and Exit transition

Opstellen en onderhouden

Sourcing Strategie

Create and maintain

Sourcing Strategy

Beheer van Practices, die hulpmiddelen leveren voor

Sourcing Strategie

Maintain Practices whichProvide tooling for the

Sourcing Strategy

Strategy


eSCM-AREAS OF A SOURCING PROJECT

ANALYSIS INITIATION DELIVERY COMPLETION

OPA:Opportunity Analysis

APP:Sourcing Approach

PLN:Sourcing Planning

SPE: Service Provider Evaluation

AGR:Agreement

TFR:Service Transition

MGT: Sourced Service Management

CMP:Sourcing Completion

Sourcing Initiative Contract Management


COOKBOOK: ORGANIZATION

: Formele besluitvorming

Stuurgroep Grip op Sourcing

Senior Steeringcommittee

Stuurgroep Grip op Sourcing: Strategie & KadersSenior Steering Committee: Strategy & Framework

Regie of Stuurgroep GOS

RegieOn going Sourcingmanagement

Stuurgroep Sourcing Initiatief

Steering committee Sourcing project

OngoingOngoing

AnalysisAnalysis InitiationInitiation DeliveryDelivery CompletionCompletion

Sourcing Competence Centre: Proces management, Resources & HulpmiddelenSourcing Competence Centre: Process management, Resources & Tooling

On going Sourcingmanagement


DECISION MAKING FOR EACH PHASE

eSCM Phase:ANALYSIS

eSCM Phase: INITIATION

Services

Legal

Finance

Governance

Risk

HR

For each decision and for each stream (aspect) it has been defined which documents to be produced

Feasibility Study

Feasibility Study

Plan van AanpakSourcing

Project plan Sourcing

EersteVerkenning

FirstAssessment

SelectionAdvise

SelectionAdvise

ContractSign-off

ContractSign-off

QuickScan

QuickScan


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Tooling


WHAT’S NEXT?

Now: “CookBook 1.0”

Using the cookbook for new

initiatives

“CookBook 2.0”

Enrichment by using


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