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Enabling Procurement Transformation
and Maximizing Business Results
through a Global Technology Platform
Masco
Brian SmithDirector, Global Supply Chain Services
Ronald DreherManager, eSourcing
GEP
Santosh NairVice President
www.sig.org/eval
Enabling Procurement
Transformation and Maximizing
Business Results through a
Global Technology Platform
Brian Smith
Director – Global Supply Chain
Services, Masco
Ron DreherManager – eSourcing,
Masco
Santosh NairVice President GEP
Presenters:
GEP – Company Introduction: GEP – Company Introduction
3
Reducing costs and driving savings to the bottom line gets us excited. GEP PEOPLE are distinguished by their drive to do better, go further and achieve more for clients.
Clark, NJMexico City
São Paulo
London
Prague
ShanghaiMumbai
Hyderabad
Singapore
Sydney
End-to-end eProcurement technology – flexible, targeted, unified, complete
A global leader in procurement services and technology (Gartner, Everest, HfS, Ardent, Hackett, Spend Matters)
Focused exclusively on sourcing & procurement
Billions in spend managed annually
Innovative source-to-pay platform – purpose built for mobile, touch, cloud
Large repository of best practice workflows, tools and templates
More than 180 Fortune 500 & Global 2000 Customers
Delivery centers in Europe, North America & Asia, supporting multiple languages
ISO 9001:2008; SSAE 16, SOC 2 certified
NMSDC certified minority owned enterprise
Princeton, NJ
Context and Session Objectives
• Journey to the steady state phase of procurement transformation with an external
services partner
• How a complex global technology implementation can be managed successfully
• Critical success factors to extract value from a cutting-edge technology platform
• Key drivers for change management and adoption
• How to enable a true partnership mentality with the technology service provider
Maximize scale, flexibility and effectiveness of the procurement organization by integrating
with an external service provider. This session will highlight progress to the steady state
phase with our external services partner, improving value delivery all along. We will discuss
the critical success factors we put in place and the way we got adoption for the technology
platform across our global business units. Further, we will discuss steps we have taken to
ensure a strategic partnership with our technology provider and maintain high motivation
levels of both the teams. And, finally, some key successes enablers.
CO
NTEXT
SESSIO
N O
BJE
CTIV
ES
4
Masco Corporation Overview
● Strategic Objectives & Supply Chain Goals
● Transformation Journey
● Critical Success Factors
Agenda
5
Forward-Looking Statements
● This presentation may contain forward-looking statements based on
current assumptions and forecasts made by Masco corporation
● Various known and unknown risks, uncertainties and other factors
could lead to material differences between the actual future results,
financial situation, development or performance of the company and
the estimates given here. These factors include those discussed in
Masco public reports, which are available on the Masco website at
www.masco.com.
● The company assumes no liability whatsoever to update these
forward-looking statements or to conform them to future events or
developments.
6
Masco Corporation is one of the world’s leading manufacturers of home improvement and building products, as well as a leading provider of services that include installation of insulation and other building products.
As of December 31, 2014, the Company had 63 manufacturing facilities and approximately 32,000 employees.
2014 Sales: $8.5 Billion
7
8
Masco – Strong Brands with Industry Leading Positions
8
BUSINESS SEGMENT
Cabinetsand Related Products
PlumbingProducts
Installation and Other Services
DecorativeArchitecturalProducts
$1.0B
$3.3B
$1.5B
$2.0B
REVENUE 2014
$8.5BTotal company
OtherSpecialtyProducts
$0.7B
LEADING POSITIONS
Leading U.S. kitchen and bath cabinetry brands
#1 worldwide in faucets, fittings, showerheads
#1 in spas
#1 insulation contractor for homebuilders
Leading DIY paint and stain provider
#1 in vinyl windows in the western U.S.
39%
23%
12%
100%
8%
18%
% OF TOTAL
9
Polling Question
9
How is your Procurement organization structured?
Centralized
Center-Led
Decentralized
Strategic Focus
2. Leverage
opportunities across our portfolio
1. Drive full
potential of our core businesses
3.Activelymanageportfolio
O P P O RT U N I T I E S
10
HQ Global Supply Chain Objectives
● Ensure each BU’s ability to Buy Best– Be the process center of excellence– Recognize and facilitate “One Voice” and “Ultimate
Authority” opportunities– Be at the forefront of recognizing emerging tools and
trends
11
● Manage Real Productivity Projects in Indirect & Logistics spend
● Ensure Enterprise Compliance with Supply Chain regulatory requirements
Masco Global Supply Chain Organization
Supply Chain Leadership Summits: Alignment – Best Practices – Performance vs. Goals
Supply Chain Leadership Team
BU Supply Chain LeadersMasco HQ Supply Chain
LeadersEurope Supply Chain Lead
VP, Masco Operating System
Director, Global Supply Chain Services
Director, Global Sourcing - Indirect
Center of ExcellenceMasco Global Sourcing Process
Spend Mgt ToolsetNetwork Design
SC Regulatory Compliance
Real Productivity ProjectsNetwork Design
Real Productivity ProjectsIndirectLogistics
Subject Matter ExpertiseIndirectLogistics
12
13
Technology Deployment Goals for Masco Supply Chain
● Advance Supply Chain capabilities by leveraging technology as the enabler,
through the support of a business partner
● Streamline fragmented business processes and systems to be aligned with
overall procurement strategy
● Transition from current manual processes to higher levels of automation
and efficiencies
● Enhance compliance & procurement results by leveraging a single
technology platform
● Ensure complete adoption and ROI from the system
14
Polling Question
14
What Spend Management modules have you deployed?
Spend Analysis
eSourcing
Integrated Upstream Suite (2+ modules)
20032007-2009
2010-2012
2013-2015
Masco’s Spend Management Technology Journey
Spend Visibility
eSourcing
Integrated Spend & eSourcing Suite
Fully Integrated Platform, Including Contracts and Suppliers
15
Selecting a Technology Services Partner
• Global presence and experience
• Strong transformation and change management experience
• Quality of resources
• Flexible and scalable resource model
• Blended model – onshore, offshore and landed
• Strong program management
• Great cultural fit
• Value & results focused
• Relationship driven vs. contractual
Procurement Capabilities
Resource Model
Culture Proximity Technology
• Proximity to Masco office with delivery centers in Shanghai, Prague and Mumbai
• Seamless communication across these offices
• Intuitive user interface to grow adoption
• Best-in-class full spend management suite (Contracts, Sourcing, Spend, Supplier)
• Native Mobility
Key requirements from the procurement partner
16
Global Deployment Strategy
Time
Develop Enable Sustain and Share
Va
lue
17
Acquire
Spend
Management
Technology
Global
Sourcing
Playbook
Global
Training
(Hands-on)
Establish
HQ Support
Team
Ongoing
Support and
Best-practice
Sharing
2014 Accomplishment Snapshot
SPEND
$20B+ Enriched
30+ Source Systems
Spend Dashboard
Masco Standard Analytical Spend Reports
SOURCING
100+ Events
11 Business Units Across North America, Europe, and Asia
CONTRACT
National Contracts Repository Implemented
SUPPLIER
Forms: Conflict Minerals, CTPAT, Approved Supplier Matrix
Scorecards: Financial, Quality, OTD, Social Responsibility KPIs
Profiles: Certifications, Manufacturing Capabilities
18
Together we rolled out 4 Products in the last year.
Realized Value of Integrated Suite by Masco
19
BEFORE
AdHoc RFP templates in various formats
Quotes via XLS and Email
Manual scorecard creation and distribution
Form distribution and collection via email with manual status tracking
UNSPSC-based taxonomy applied to spend data
Spend reports created by Masco HQ
Inefficient quarterly spend enrichment cycle
Supplier profiles maintained at individual business units
AFTER GEP PLATFORM IMPLEMENTATION
Standard repeatable RFP process with content library, including NDA and T&C
Advanced online price sheets
Scorecard automation and online distribution improves accuracy
Online form access and tracking reduces administrative burden
Custom Masco taxonomy applied to spend to improve accuracy and usability
Intuitive interface allows business units to create custom reports
Spend enrichment cycle time cut to half
Supplier profiles shared and accessible across Masco Corporation
Program Success Enablers
Leadership Commitment and
Passion
Integrated and Intuitive Technology
Suite
Organization Capability
Tracking and Reporting
Strong Partner
20
Key Success Factor: Strong Program Governance
WeeklyResource utilization, risk management, change
management, prioritization, upcoming activities
Monthly
Project performance review, monthly reporting,
customer satisfaction, review of GEP product
roadmap
QuarterlyFace-to-Face steering committee reviews – strategic
alignment, capability improvement, customer
satisfaction, change management
AnnuallyAnnual partnership review, business alignment, future
opportunities, review of Masco and GEP business
focus for the year
3h workshop
3h duration
2h duration
1hr call per product
21
What’s Next?
● Identify opportunities for increasing user adoption
22
● Monitor and evaluate new features and technologies to drive additional value
● Facilitate refresher trainings and expand library of user guides and templates
● Deploy spreadable wins – teach by example
Closing and Q&A
23
Thank You -
Contact Information
Brian Smith
Director – Global Supply Chain Services
Ron Dreher
Manager – eSourcing,
Santosh Nair
Vice President, GEP Technology
www.masco.com www.gep.com
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Workshop 11
Enabling Procurement Transformation and Maximizing
Business Results through a Global Technology Platform
Speakers:
www.sig.org/eval
Masco Ronald Dreher [email protected]
Masco Brian Smith [email protected]
GEP Santosh Nair [email protected]