How does Bekaert manage nowadays Purchasing globally

Transcription

1 How does Bekaert manage nowadays Purchasing globally Ton Geurts CPO, Bekaert June, 2015

2 Content Bekaert overview 2014 results and way ahead Purchasing KPI dashboard 2015 Integrated supply chains Key Supplier Management Sustainability/Ecovadis 2

3 One Bekaert moving forward Our Vision - Our Field of Play Consistent with our better together aspiration, we relentlessly pursue to be the preferred supplier for our steel wire products and solutions, by continuously delivering superior value to our customers around the world. 1. drive the customer into the heart of our business 2. value driven growth 3. Technology leadership and speed 4. leverage scale and reduce complexity 5. lowest total cost Our 5 Core Strategies Goal statement for the Heart: Our Mission A One Bekaert team with the passion to win, by delivering the best value adding solutions for our customers in the most cost effective way, and through that, create value for our business. Goal statement for the Head: Our plan Increase, within 3 years: Revenue by 25% Profit by 50% ROCE by 100% Our 5 Guiding Principles Our 5 urgent Must Win Battles 1. Passion for excellence 2. Outside-in orientation 3. Agile innovation 4. Everyone a Bekaert leader 5. One Bekaert Our Values 1. Cut the crap 2. Build a winning business portfolio 3. Install manufacturing excellence 4. Create the highest value TC business in China 5. Be the global top of mind ropes solution provider Integrity Trust Resilience 3

4 Sales by segment

5 Combined sales per region and per sector

6 Our vision & 5 core strategies Field of Play : Consistent with our better together aspiration, we relentlessly pursue to be the preferred supplier for our steel wire products and solutions, by continuously delivering superior value to our customers around the world 5 core strategies: 1. Drive customer into the heart of the business 2. Value driven growth 3. Technology leadership and speed 4. Leverage our scale to greater efforts reduce complexity 5. Lowest total cost 6

7 Purchasing KPI Dashboard 2015 Financials Business impact: 1. Bottom line savings (current Bekaert conventions X mln to be aligned with Bekaert Manufacturing System) 2. WC - payment terms + stocks (X miln of free cash;/purchasing directive) Supplier Relation 1.Partnerships - Key supplier agreement (Wire Rod + selective other categories; target: 65% of WW Wire Rod spend) - Have aligned action plan for key suppliers (to be included in way of working) Enablers/operational: 1. Competitive edge/indices 2. On time delivery Processes 1. P2P efficiency (supported by the purchasing policy) - PO coverage - Contract/Catalogue coverage 2. Selective e-sourcing and EDI 3. Optimal support BMS and Pirelli 2. CSR - % Suppliers code of conduct (50% of the spend; TOP 10 suppliers for each category) - Comply with GRI G4 guidelines (target: 100% implementation of agreed actions by end 2015) People 1. Full transparency on authorization and R&R 2. Focused training curriculum 3. Well defined succession planning and execution 7

8 We use PMO to facilitate KPI & process management Category Mgr. WR Category Mgr. Dies & Pack. Category Mgr. Trans. & Log. Category Mgr. RM Category Mgr. Corp. Serv. Category Mgr. OEM & CAPEX Category Mgr. IT & Telecom Category Mgr. Spools Category Mgr. Utilities 8 PMO CPO Proc. Controller PMO Partners Frequency: The PMO takes place 1 time per month for each Category. Roles: The PMO is chaired by CPO Category Managers report to the PMO. PMO Partners are Regional Purchase Managers, and P2P Process Manager.

9 PMO covered programs The PMO manages the process & performance management including the following programs: Savings tracking Systematic project management Savings tracing towards annual target P2P Payment terms and process management Efficiency Efficiency optimization Corporate Services Sustainability Category & Region Travel and consultancy spend reduction Code of conduct compliance Ecovadis execution Category & Region specifics (e.g. contract and supplier management etc.) 9

10 5/03/14 19/03/14 2/04/14 16/04/14 30/04/14 14/05/14 28/05/14 11/06/14 25/06/14 9/07/14 23/07/14 6/08/14 20/08/14 3/09/14 17/09/14 1/10/14 15/10/14 29/10/14 12/11/14 26/11/14 10/12/14 24/12/14 7/01/15 21/01/15 4/02/15 18/02/15 We use Monthly Report to track RM indices development Key topics 1. Executive Summary 2. Raw material cost evaluation As an example 3. Market price update (CRU) 4. Bekaert Wire rod price development Low Price High Price

11 Integrated supply chains (1/3) Procurement Spend bln 11

12 Integrated supply chains (2/3) Raw materials Own operations Customer operations End user End of life Energy/resource benefits in use Business Sustainability Cost savings Cost savings Improve revenue and margin Improve revenue and margin Resource efficiency Reduced material and energy use Reduced energy use Reduced material and energy use in customer processes, and application Reduced material and energy use in product use People capability & engagement Engaged suppliers Engaged employees Engaged customers Engage customers and users Foundations: HSE, product stewardship, employee practices, community involvement, Code of Conduct 12

13 Our commitment to the Global Reporting Initiative Annual report 2013 GRI 3.0 Bekaert s global Corporate Social Responsibility (CSR) strategy is centered on four main pillars: our responsibility in the 1) workplace, in the 2) marketplace, towards the 3) environment and towards (4) society. Our CSR efforts and activities are therefore focused in such a way that balanced consideration is given to the interests of all respective stakeholders, i.e. employees, customers, shareholders, partners, local governments and the communities in which we are active. 13

14 Key Supplier Management builds on 4 main pillars Partnership for mutual profitable growth Expand current Businesses -commercialize running projects - increase overall supply share Improve Total Cost of Ownership - supply chain - financial & transactional - rationalization Joint Innovation - joint projects - based on mutually agreed rules and principles Foster Relationship - top management commitment and support - mgmt exchange of all relevant functions Existing Spend

15 Key Supplier Management contract conditions for Key Suppliers Supply Continuity Longer term agreements Automatic provisions for growth Product discontinuation guidelines Two way toll manufacturing Cutting Edge Technology First look at new products. Potential for exclusivity Technical project management. Joint projects, joint strategies Price Management Most Favored Nations Pricing. All products, all regions Meet or Release Clauses for competitive threats Adequate notification, Minimum quarterly fixed prices Single price list per region Commission for Growth Above and beyond other regional or product rebates/ commissions Rewards overall global growth Working Capital Management Extended invoice terms Management of inventories. Consignment On line VMI Short Lead Times Preferred Supplier Inclusion in new product development where capabilities exist Senior Management meetings Active support in emerging markets Long term strategy development

16 Bekaert Key Suppliers Agreement Key Supplier Moravia Saarstahl Posco Shagang XingCheng Georgetown Belgo GERDAU Keystone EVRAZ AM EU Region Europe Europe NAS NAS NAS NAM NAM NAM NAM NAM EMEA 16

17 Our mission on Sustainable Supply To integrate practical sustainability elements into our daily commercial relationships in order to: raise awareness reduce risk continuously improve the sustainability of our supply chains deliver on our promises for the benefit of our customers, employees, shareholders, communities and the environment. 17

18 Supplier Sustainability Framework 2015 Bekaert Supplier Sustainability Compass Values Integrity Trust Resilience Code of Conduct Process 1 Code of Conduct Sustainable Supply Process 2 Ecovadis Auditing Mission Measurable Developme nt Delivery Values and Principles: Our foundation for sustainable sourcing - Code of Conduct - Safety, Integrity, Sustainability Processes: Builds capability & capacity; Supports meaningful supplier development & risk reduction 1. Code of conduct 2. Auditing Mission: An engaged and continuously improving supply chain - Measurable supplier development and delivery Vision: Sustainable Integrated Supply Chains 18

19 Ecovadis Ecovadis solution addresses Sustainability issues by providing web-based collaboration tools for buyers and suppliers, which allows purchasing executives to get access to easy-to-use dynamic scorecards, and to monitor the Sustainability performance of their suppliers as well as their continuous improvement actions. 19

20 20 Thank you very much!

21 better together