“Building a Global Community”

ONCE Global Summit 2005May 4 – 6, 2005Milan, Italy

Hosted by i-Faber (www.1City.biz)

Sponsored by:

Procurement Executive Circle

The environment for the Purchasing Managers of the most important Italian companies

Andrea TiberiMarketing Manager

i-Faber

Procurement Executive Circle (PEC)

The project• The environment The Italian purchasing managers haven’t,

so far, any environment where they could meet up in order to share their experiences, understand the guidelines of their own function and match the strategic challenges requested by the top management of their companies

• The goal Enable the creation of: - an environment where the Purchasing

and Supply Chain Mgrs. of the companies belonging to different sectors can meet up and share their experiences

- a laboratory of models and best practices related to the Purchasing and Supply Chain function

- an opportunity to share ideas, knowledge and analyse future relevant scenarios

• The environment is characterized by the relationships among different bodies with peculiar roles…

Body

Board

Purchasing Managers of the top Italian companies

Management Committee

Purchasing Managers of the leading Italian companies (“Top 250”)

Industry committees

Community

Core companies (“Top 1000”)

Role

Future possible scenarios: how to reach the leadership

Analysis & sharing

Validation & feedback

Procurement Executive Circle (PEC)

Bodies involved and roles

Procurement Executive Circle (PEC)Method adopted

Facilitator

Community

Validation

Feedback

Management

Committee

Synthesis

Board

Analysis

Procurement Executive Circle (PEC)

Board composition• The Board It features the Purchasing Managers of

the top Italian companies for turnover in each industry or of those companies which represent benchmarking in their own business for a total number of 30 companies.

These companies represent approximately 11% of the Italian GDP

Some examples: Alitalia, Bayer, Carrier, Coca Cola, Kuwait Petroleum, Indesit Company,

Pirelli, Sanofi Aventis, ST Microelectronics and Vodafone

Procurement Executive Circle (PEC)

How the key issues are analysedMore than three hundreds interviews were made to the leader companies of each industry in order to analyse deeply and share with the Management Committee the key issues of the first board meeting

The panel of the interviewed companies is made of six industries: Distribution

Process industry (Oil,….)Manufacturing industryProject based industry

Financial services (Banks & Insurances) Other services – Utilities

Besides Industry Committees are addressed to analyse, deeply and referred to the peculiar business ,the key points coming from the board meetings and to work out on them enabling round tables

Procurement Executive Circle (PEC)Board meetings key points

•Further to the first 6 Board meetings, the key points of major interest, addressed to the Purchasing Department, were the following

OrganizationTools to support the function How the innovative technologies can increase the performances Expertise & Skill GapKPI’SLegal aspectsRisk Management

Procurement Executive Circle (PEC) Figures as 30th April 2005

• Companies involved in the Board 30

• Companies involved in the Management Committee

250

• Board meetings per year 3

• Industries Committees per year 6

• Consultancy companies and solution provider

Procurement Executive Circle (PEC) Third parties

They are involved in the discussion of specific key issues

Key2people, executive search company, is partner of PEC

Value Partner Strategic and organizational subjects

Accenture; AT Kearney; Deloitte Specific subjects KPMG; PCW; Roland Berger;

Strategic Sponsor (D&B; Oracle) Presentations on focused topics

• Universities

Italian Politecnico, Milan (Engineering)SDA Bocconi, Milan (Economy)

International Stanford University (USA)Villanova University (USA)London Business School (UK) Erasmo University, Rotterdam (NL)Eindhoven University (NL)

• OrganizationsONCE, SIG, CAPS, Commercenet (US)CIPS (UK)

Procurement Executive Circle (PEC) Third parties

• Purchasing Social Responsibility The creation of a code, made of ten rules, which must

be adopted by “ethic” companies in the relationships with their suppliers

• PEC Academy A knowledge center fully dedicated to the Purchasing

Executives, aimed to examine – through 8 one-day events per year – the most important subjects discussed by international organizations and gurus

Procurement Executive Circle (PEC) Special projects