Week 2 C - Procurement Opportunity Assessment Proposal to Serve 2 Contents Introduction 3 Our Understanding 5 Proposed Approach and Deliverables 7

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Unformatted text preview: August 12, 2002 Procurement Opportunity Assessment Proposal to Serve 2 Contents Introduction 3 Our Understanding 5 Proposed Approach and Deliverables 7 Our Capabilities and Relevant Experience 13 Proposed Project Team, Timeline and Fees 19 Closing Remarks and References 24 Appendices: 27 – A. Client Case Studies and Qualifications – B. Representative Professional Resumes – C. Select Sample Deliverables – D. Project Accelerators – E. Factors Used to Determine Savings Estimates – F. Approach to Validate Spend Data Page 3 Introduction Introduction Introduction 4 Our Understanding Our Understanding Our Understanding 5 We understand the proposed scope and objectives of the project to be as follows: Project Objective: – Develop a quantifiable business case and prioritized improvement plan that identifies the benefits of procurement transformation and the strategies to enable the transformation Project Scope: – Business Units – Geography – Business Processes- Requisitioning- Sourcing and Supplier Selection- Purchasing and PO Processing (including p-cards)- Accounts Payable (includes supplier terms & conditions)- T&E- Contract Management- Supplier Relationship Management – Spend Categories- Direct Materials, with the exception of agriculture- Indirect Goods and Services – Other- Procurement Organization Structure, Policies and Procedures- Procurement Technologies, especially e-procurement and e-sourcing Our Understanding 6 Proposed Approach and Deliverables Proposed Approach and Proposed Approach and Deliverables Deliverables 7 Consolidate Spend Reduce Costs Improve Process Efficiency Leverage Technology Define Organization Structure Prioritized Implementation Plan Business Objectives Recommendations Our approach provides for a comprehensive review of CCC’s procurement capabilities, with the outcomes setting the course for CCC to achieve its business objectives. 33 “Hybrid Centralization” Corp VP of Procurement/ Chief Purchasing Of icer SBU Head of Purchasing and/or Materials SBU Leadership SBU Head of Purchasing and/or Materials SBU Leadership S p e n d A n a l y s i s A u t o F l e t O f ic e S u p s & S v c s T r a v e l F r e i g h t S u p li e r P r o g r a m s T h e m o s t c o m m o n m o d e l is a n S B U P r o c u r e m e n t M a n a g e r w h o is a d i r e c t r e p o r t o f S B U l e a d e r s h ip A N D w h o re p o r ts o n a “ d o t e d - li n e ” b a s is to a c o r p o r a t e o r “ c e n t e r - le d ” V P o f P r o c u r e m e nt/ M a te r i a ls M a n a g e m e n t o f c o m m o d i tie s p u r c h a s e d a c r o s S B U s ( e x a m p le c o m m o d itie s a r e “ t y p ic a l” o f o r g a n i z a ti o n s r e s e a r c h e d ) A c tiv itie s r e la te d to p r o c e s d e v e lo p m e n t a n d m a n a g e m e n t a r e ty p ic a l y p r e s e n t in t h is m o d e l b u t a r e v e r y l im i te d in s c o p e . F o r e x a m p l e .e x a m p l e ....
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This note was uploaded on 05/11/2008 for the course NBA 5780 taught by Professor Peck,nathan during the Spring '08 term at Cornell University (Engineering School).

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Week 2 C - Procurement Opportunity Assessment Proposal to Serve 2 Contents Introduction 3 Our Understanding 5 Proposed Approach and Deliverables 7

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