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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
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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
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AGENDA
Achmea Insurance
Outsourcing at Achmea
eSCM-CL
Sourcing Competence Center
Implementing the cookbook
Benefits and results
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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)
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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
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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
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eSCM-CL OVERVIEW
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QUINT’S eSCM PERSPECTIVE
Ongoing
Analysis Initiation Delivery Completion
Copyright © Quint 2010
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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
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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
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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...
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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
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<tekst>RESULTS AT ACHMEA
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PROVIDING A COOKBOOK
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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
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FINAL RESULT
OngoingOngoing
Analysis Initiation Delivery Completion
OngoingOngoing
Analysis Initiation Delivery Completion
Sourcing Reference Process
PracticeSheets
HulpmiddlenTooling
eSCM WIKI Sharepoint
The Cookbook v 1.0
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SOURCING LIFE CYCLE BY eSCM
OngoingOngoing
Analysis Initiation Delivery Completion
OngoingOngoing
Analysis Initiation Delivery Completion
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
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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
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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
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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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<tekst>
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Tooling
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WHAT’S NEXT?
Now: “CookBook 1.0”
Using the cookbook for new
initiatives
“CookBook 2.0”
Enrichment by using
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25
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