Automation & Process Improvement Strategies. Onno Maliepaard The Goodyear Tire & Rubber Company

Transcription

1 Automation & Process Improvement Strategies Onno Maliepaard The Goodyear Tire & Rubber Company

2 Agenda Intro Goodyear Tire & Rubber Company Organisational design principles behind Purchasing set up Automation as lever to increase effectiveness & efficiency of purchasing Business Intelligence as outcome of automation New measures of efficiency and effectiveness

3 Our Early Years Founded: In 1898 in Akron, Ohio by industrialists Frank and Charles Seiberling. Named: In honor of Charles Goodyear, discoverer of the vulcanization process for natural rubber. Products: Frank Seiberling Bicycle and carriage tires and rubber goods. Developed the Straight-Side tire and first tire building machines. Developed pneumatic airplane tires in 1909 and began work on airships ( blimps ) in 1910.

4 Early Milestones Became the world s largest tire company on the basis of sales in Opened its first plant outside the U.S. in 1910 in Bowmanville, Canada. Sales reached the $100 million mark in 1917 $1 billion in 1951 $5 billion in 1974 $16 billion in 2009

5 In 2011 Net Sales Net Income Tires Sold Worldwide Associates $22.7 billion $343 million 180 million 72,000

6 Global Facilities World Headquarters: Akron, OH Global Technical Centers: Akron, Luxembourg, Hanau Global Manufacturing Facilities: 57 Manufacturing Footprint: 23 countries, 5 Continents

7 Global Consumer & Commercial Sales with Leading Brands

8 Overview Leading Market Positions and Brands North America European Union Latin America Asia Pacific Brands Market Position #1 #2 #1 #2

9 Goodyear Purchasing Org Drive Effectiveness Leadership STRATEGY Strategy and Compliance Supply Management Strategy & Leadership Compliance Drive Effectiveness & Efficiency Drive Efficiency Expertise Based Activities Operational support Transactional Activities Expertise-based Activities Sourcing: Category Management and Spend Analysis Sourcing: Supplier Evaluation and Negotiation Supplier Performance Management Contract Management Supplier Collaboration Transactional Activities Requisitioning Order Processing Material Receipt Financial Settlement Supplier Data Management Supplier Enablement 3 Pillar Organization established

10 Goodyear Internal Business users 2) Local Operational Procurement 1) Expert Sourcing & Category Management* 2) Regional Operational Procurement* 3) Transactional Procurement* REGIONAL OFFICES LUXEMBOURG LUXEMBOURG SSC + COUNTRIES, WHEN -no language leverage - continuous local supplier engagement Near Shore Intramural Suppliers

11 Source-to-Pay Process Automation eprocurement tightly links Requester with Procurement Requester Procurement Requester A/P Supplier Portal A/P Workflow eproc / MRP esourcing eprocurement einvoicing Strategic CLM / ecat VMI / VMOI SIS Transactional Request Source Contract Order Receive Pay Operational

12 Business Intelligence to drive Process Performance Optimization Overview of approved SCs SCs by requester SC approval steps and approval time Overview of overdue MRP requisitions Monitor Shopping Carts (SCs) Monitor Requisitions ABC vendors via VMD spend analysis Contract Lifecycle Management Elemica Optimizer tool for raw materials Define SRM Strategy Optimize Contracts Perform Contract Admin Vendor performance evaluation (process) OTIF on time in full tracking (late PO deliveries) Tracking of quantity mismatches Goods Receipt document details Optimize Supplier Performance Receive Goods and Services Request Source Circle back Contract input for Sourcing: avg payment Order days, avg cycle Receive time, avg pricing, etc Pay Define Strategy Plan Provide Sourcing Support Provide esourcing Services Key Performance Indicators (commercial + process) Spend classification based on standardized product hierarchy at line item level Vendor performance evaluation (commercial) Vendors per product category, per POrg RFx and Auction documents per product category, per Porg Elemica Optimizer tool for raw materials Define P2P Strategy Manage Cost Center Performance cycle KPIs Workload per POrg SCs/POs per cost center PO document details Elemica VMI/VMOI reporting for raw materials Optimize User Compliance Perform Invoice Processing Invoice-PO compliance reporting Tracking of price mismatches Invoice document details

13 Process KPIs to drive Continuous Process Improvement Spend concentration (Indirects) Portal usage (Indirects) Note: RMs via VMI Portal KPI Target Actual >60% spend covered by 300 suppliers 80% actively managed suppliers defined on portal 75% of PO transactions via portal Handsfree procurement Indirects: >70% Raw Materials: 100% esourcing usage Note: RMs via offline process einvoicing usage 28% Jul % Jan 2014 Compliance Indirects: 97% Raw Materials: 100% 65% spend covered by <300 suppliers 25% actively managed suppliers defined on portal 65% of PO transactions via portal Indirects: 72% Raw Materials: 100% 50% hands-on shopping carts 20% hands-on shopping carts 30% Jul 2013 Indirects: 97% Raw Materials: 100%

14 Transactional Center Balanced Scorecard to industrialize shopping cart handling Focus Area KPI Target Actual Efficiency Transaction cycle time <3 work days per PO avg <1.5 work days FTE loading >25/FTE/day 18/FTE/day Effectiveness Handsfree >70% 72% Price errors <5% <0.3% Sustainability Turnover rate <30% <10% 98% processed <3 days <1 day avg cycle time