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Amplify Cost Savings, Influence More
Spend and Enhance Your Procurement
Brand with A Center-Led Sourcing
Execution Center
Just Do It:
Nike
Brett MillerDirector, Sourcing Execution
Denali Sourcing Services
David Gonzalez Senior Manager
www.sig.org/eval
JUST DO IT: AMPLIFY COST SAVINGS, INFLUENCE MORE SPEND, & ENHANCE YOUR PROCUREMENT BRAND WITH A SOURCING EXECUTION CENTER
N I K E P R O C U R E M E N T & D E N A L I G R O U P S I G G L O B A L S U M M I T : O C T . 2 8 T H , 2 0 1 5
TODAY’S LINEUP PG. 2
01 – NIKE, INC. OVERVIEW
02 – PROCUREMENT: UNLOCKING VALUE
03 – GAME PLAN FOR SOURCING EXECUTION CENTER (SEC)
NIKE PROCUREMENT – SOURCING EXECUTION CENTER
NIKE, INC. OVERVIEW –
W H O W E A R E
J A N U A R Y 2 5 , 1 9 6 4
NIKE’S ROOTS IN PARTNERSHIP BEGAN WITH A
HANDSHAKE BETWEEN A
TRACK COACH AND HIS FORMER
ATHLETE.
—
TO BRING INSPIRATION AND INNOVATION TO EVERY
ATHLETE IN THE WORLD*
*IF YOU HAVE A BODY, YOU ARE AN ATHLETE.
N IK E , IN C . M IS S ION
NIKE IS A GROWTH COMPANY FUELED BY ITS CONNETION TO THE
CONSUMER AND ABILITY TO DELIVER INNOVATION AT AN UNPRECEDENTED
PACE AND SCALE
POWERFUL CATEGORY PORTFOLIO
BASKETBALL $3.7B
FOOTBALL/SOCCER $2.2B
NIKE SB $736M
WOMEN $1.3B
RUNNING $4.9B
SPORTSWEAR $6.6B
TRAINING $2.5B
GOLF $771M
PG. 7 NIKE PROCUREMENT – SOURCING EXECUTION CENTER
TO REACH ITS POTENTIAL, NIKE MUST DO THINGS
DIFFERENTLY.
AND THAT’S WHERE NIKE PROCUREMENT COMES IN.
UNLOCKING VALUE –
N IK E P R OC U R E MEN T
NIKE PROCUREMENT’S MISSION
MAXIMIZE
CONSUMER & PROFIT IMPACT BY LEVERAGING OUR SUPPLIERS & OUR SCALE.
—
DRIVEN BY VALUES
1 —
PARTNER WITH INFLUENCE
2 —
CHALLENGE AND INNOVATE
3 —
USE FACTS TO CREATE LEVERAGE
4 —
DRIVE FOR RESULTS
5 —
ACT AS ONE TEAM
PG. 12 NIKE PROCUREMENT – SOURCING EXECUTION CENTER
HOW WE RUN
FACILITES & RETAIL —
Integrated facilities management, retail fixtures, security,
construction and more..
PROFESSIONAL SERVICES
— Temporary labor,
consulting, outsourced services and travel..
MANUFACTURING —
Automation equipment for the advanced
manufacturing team..
SUPPLY CHAIN —
Inbound logistics, distribution center
operations and outbound logistics..
MARKETING —
Agencies, media management, digital
brand and event marketing.
TECH / DIGITAL —
IT outsourcing, telecom and wireless,
retail technology, software and IT
hardware..
MATERIALS —
Material inputs such as textiles, polymers, chemicals, leathers,
packaging and components.
VALUEMAX —
Linkage to product category design and development to get
best materials at best price..
$ MILLIONS IN VALUE CREATED
GLOBAL OPERATIONS, LOCAL INTEGRATION – DRIVING THE REACH AND IMPACT OF PROCUREMENT
PG. 13 NIKE PROCUREMENT – SOURCING EXECUTION CENTER
SEC GAME PLAN –
N IK E P R OC U R E MEN T SOU R C IN G EXEC U TION C EN TER (SEC )
WHAT IS THE SEC? AN ON-DEMAND SHARED SERVICE TEAM WHO PARTNERS WITH THE BUSINESS TO INFLUENCE SPEND DECISIONS, UNLOCK
VALUE, AND ENHANCE THE PROCUREMENT BRAND IN THE NIKE COMMUNITY
DELIVER GLOBAL SCALE — - As Nike’s business grows rapidly, SEC
provides global scale to keep up with pace of business needs.
SEC GOAL STATEMENTS
OFFER FLEXIBLE SOLUTIONS — - On-demand, project based support model which
can flex up/down as needed. - ‘One-stop shop’ for multiple services
BE PROCESS EXPERTS — - Consistent, standard processes in place - Performance-based service levels with Denali
01 02 03
INTEGRATE WITH BUSINESS — - SEC partners with business stakeholders to deliver timely
support & end-to-end services.
EXPLOIT TECHNOLOGY BENEFITS — - Utilize eSourcing to drive efficiencies to sourcing projects - Be ‘Go 2 Team’ for using procurement technology systems
PIPELINE FOR TALENT — - Develop potential sourcing talent for Procurement
04 05 06
PG. 16 NIKE PROCUREMENT – SOURCING EXECUTION CENTER
HISTORY OF SEC PROGRAM PG. 17
FY13 SEC Pilot Program
FY14 Rollout North America SEC Program
FY15 Accelerate Growth and Drive Savings Impact
FY16 Expand Globally, Win in Europe and Asia
• Issue RFP to review and select a Service Provider • Service Provider for Pilot
• New Position: Director of Sourcing Execution • Service Provider for Program: Denali Sourcing Services • Expand support beyond World Headquarters to Memphis, Converse,
& Europe
• Fully developed SEC Contractor team at World Headquarters, build SEC team in Europe
• Expand support to new spend categories
• Replicate Americas model in Europe and Asia • Focus on holistic spend category as well as region
NIKE PROCUREMENT – SOURCING EXECUTION CENTER
SEC GLOBAL TEAM
NORTH AMERICA Nike + Denali
PG. 18
LATIN AMERICA Nike + Denali
EUROPE Nike + Denali ASIA
Nike + Denali
GLOBAL OPERATIONS, LOCAL INTEGRATION – DRIVING THE REACH AND IMPACT OF PROCUREMENT
NIKE PROCUREMENT – SOURCING EXECUTION CENTER
SEC PROJECT CLASSIFICATIONS PG. 19
TIER 1
COMPLEX
TIER 2
STANDARD
TIER 3
QUICK BID
TIER 4
NO BID
• Large spend • Medium to high risk • Extensive contract work
• Multi-phase sourcing: RFI + RFP + RA • Multi-supplier evaluation • Extensive negotiation strategy
• Medium spend • Low to medium risk • Some contract work
• RFI or RFP only • Multi-supplier or single source • Basic negotiations
• Low spend • Low risk • Minimal contract work
• Simple quotes • Short list of suppliers or single source
• Low spend • Low risk • Minimal contract work
• No price negotiations • Standard contract templates
Typical Criteria Common Attributes
NIKE PROCUREMENT – SOURCING EXECUTION CENTER
PROJECT CASE STUDIES
NIKE BRAZIL RETAIL SECURITY SERVICES
— COMPETITIVE BID: NIKE FACTORY STORES
Improved supplier performance SLAs
NIKE ENTERPRISE WORKLOAD AUTOMATION
— COMPETITIVE BID: NIKE TECHNOLOGY TEAM
Double-digit savings realized
CONVERSE HQ FURNITURE
— COMPETITIVE BID: NEW HEADQUARTERS
Aggressive project cycle-time achieved
PG. 20 NIKE PROCUREMENT – SOURCING EXECUTION CENTER
START SMALL —
BE SELECTIVE - LOW RISK PROJECTS IN MATURE CATEGORIES
ADJUST & GO —
BE FLEXIBLE WITH OPERATING MODEL & RESOURCE MIX
MEET REGULARLY —
INSTITUTE WEEKLY CHECKPOINTS, QUARTERLY SCORECARDS, AND BI-ANNUAL REVIEWS
21 pg.
LESSONS LEARNED
YOU CAN'T SPELL SUCCESS WITHOUT S-E-C
IN SUMMARY
— NIKE’S POTENTIAL FOR
GROWTH HAS NEVER BEEN GREATER
— PROCUREMENT UNLOCKS
VALUE THROUGH RELATIONSHIPS,
COLLABORATION, AND CREATING SPACE FOR INNOVATION
— SEC IS AN ‘ENABLER’
TO SUPPORT PROCUREMENT’S
MISSION & ALIGN TO NIKE’S GROWTH
PG. 23 NIKE PROCUREMENT – SOURCING EXECUTION CENTER
BRETT MILLER Director, Sourcing Execution
DAVID GONZALEZ Program Manager, Denali
CONTACT INFORMATION PG. 24 NIKE PROCUREMENT – SOURCING EXECUTION CENTER
Evaluation How-to:
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Session #41
Just Do It: Amplify Cost Savings, Influence More Spend and
Enhance Your Procurement Brand with A Center-Led
Sourcing Execution Center
Speakers:
www.sig.org/eval
Brett Miller Nike [email protected]
David Gonzalez Denali Sourcing Services [email protected]
