ArcBlue Consulting Group www.pmms-group.com @ArcBlueGlobal

Our Capabilities and Expertise‘Equipping and Enabling Procurement to improve business performance’

Adam.johnson@pmms-group.com

About PMMS

• Established in 1978, we have a team of around 100 consultants and

revenues of around €10m

• 100% focused on equipping and enabling procurement talent

– We improve business performance through intelligent and practical

solutions, developing our profession through intellectual capital

– Over 1,500 workshops annually to 10,000 professionals and we assess

around 2,000 people annually

– We deliver typically a 10:1 return on investment on our projects

• Wide range of services in consulting and in skills development

– Transformation, benchmarking, process development, project support,

skills development, accredited learning, e-learning

• Established working relationships with SCMA in Canada and CIPS in UK,

South Africa, UAE, Singapore and Australasia

Procurement Excellence is all we do

• Our mission is to improve the business performance of our clients through

intelligent and practical solutions

• We are 100% focused on equipping and enabling procurement talent by

supporting clients with a range of services

– People & Skills Development• Organisational design and structures

• Competence framework development

• Skills profiling and assessment

• Tutorial and e-learning; coaching and mentoring

• Accredited learning leading to MCIPS and B.Sc./M.Sc. in Procurement

– Consulting• Procurement transformation and functional development

• Strategic Sourcing & Category Management processes

• Supplier Relationship Management

• Capability benchmarking and diagnostics

• Project support and interim placement

PMMS North AmericaUSA, Canada, Mexico PMMS Europe

UK, France, Germany, Switzerland, Turkey

PMMS Southern AfricaSouth Africa

PMMS Middle East and North AfricaUnited Arab Emirates, Turkey

PMMS Asia PacificAustralia, New Zealand, Hong Kong, Japan

PMMS globally

With 100 professionals across 5 continents, we offer both global reach and

local knowledge with the capability to deliver in 10 different languages

ArcBlue Consulting Group www.pmms-group.com @ArcBlueGlobal

Case Studies‘Our Results’

Case study – Procurement Academy

Client Situation Approach Benefits

Global Mining &

Equipment

Manufacturing

Global

• Business marketplace becoming more competitive

• Profit targets becoming more challenging to achieve

• Supply markets not perceived of offering best value compared to competition

• Need for common process to ensure supply markets were effectively challenged and motivated

• PMMS appointed to provide category management and change management

• Training and development of the whole procurement team worldwide effected.

• Development followed up by every delegate working on a specific project with a PMMS coach / consultant in order to secure optimum payback

• PMMS developed on line suite of available documentation

• A significant payback with some projects delivering in excess of 100:1 and the average pay back running at a level above 18:1

• Category management now embedded and stakeholder community usually support the procurement team in this process.

• Improvements in service and innovation in a number of areas, significantly increasing operating effectiveness within manufacturing operations

Case study – Procurement Academy

Client Situation Approach Benefits

Retail Bank

Central Europe

• Banks across 15 central European countries

• Procurement community of over 170 people

• Requirement to develop skills consistently across the network in a structured manner targeting

• PMMS assessed the community of 170 using an on-line sourcing questionnaire consisting of 100+ questions

• Designed competence framework and aligned role descriptions

• Results benchmarked against database of over 10,000

• 3 year learning curriculum established

• Initial training focused on priority skills

• Content aligned to bank’s processes and ways of working

• Clear definition of skills requirement by role description

• Investment targeted where it is most needed

• Clearly defined roles and responsibilities

• Better identificationand management of in-contract risks

• Clarity amongst contract owners on the application of the law

• Consistency in approach and application of tools

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Case study – Procurement TransformationClient Situation Approach Benefits

Manufacturer of Soft

Drinks

• $1.2bn of external expenditure including $200m of indirect expenditure.

• Little vision, policy and process with predominantly traditional approach to procurement

• Poor process control in indirect expenditure

• Need to reduce cost base and improve management of complex commodity categories

• Structured assessment and diagnostic of the total procurement capability

• PMMS implemented the recommendations and provided resources to support the team in delivering opportunities to the management of key categories in direct and indirect expenditure

• Developed policies, processes and proposed controls to the procure-to-pay process

• Training to develop and enhance the skills within the team

• Reductions of over $20m or 20% annualized improvement for supported categories and a ROI of over 10:1

• Improved organisational alignment and delineation of sourcing role from materials management Consistent methodologies, tools and processes adopted across the procurement team to support better decision making

• Effective control and influence over indirectexpenditure

Case study – Process and Capability Review

Client Situation Approach Benefits

Power Generation and

Distribution

Europe

• £2.0bn of external expenditure managedby a team of around 55 procurement professionals

• Need to develop technical skills and support individuals in applying the knowledge to projects

• Requirement to implement a category management led approach

• PMMS undertook a structured assessment of the team to identify learning and development needs

• PMMS reviewed supporting management practices, coaching and mentoring frameworks

• PMMS developed a modular competence based academy spanning 12 months and consisting of tutorial and project support

• Provision of on-line category management tool enabling consistent ways of working and effective application of tools

• 12 projects completed delivering a Return on Investment of around 10:1

• Category management approach embedded within key parts of organisation

Case study – Supplier Management Diagnostic

and Process Development

Client Situation Approach Benefits

London Borough

Council

• No defined capability for supplier and contract management

• £300m of external expenditure

• No structure or process to the management of suppliers

• Unknown risks and concerns over compliance to the law

• Perceived

• Anticipated skills development needs

• Known contract and supplier issues

• Delivered a structured assessment of contract ownersopinions, practices and needs using a semi-structured questionnaire

• Facilitated workshopsto collect views and opinions, understand problem areas to help develop solutions

• Developed new process, tools and templates

• Recommendations for learning around 14 areas of competence

• Clearly defined roles and responsibilities

• Better identificationand management of in-contract risks

• Clarity amongst contract owners on the application of the law

• Consistency in approach and application of tools

Case study – Spend Analysis and Category

Mapping

Client Situation Approach Benefits

National Provider of

Postal Services

• $6.9bn business with 71,000 employees

• $1.5bn of external expenditure.

• Little segmentation of expenditure into well defined categories

• Poor organisational alignment to categories

• Need to reduce cost base and improve management of complex commodity categories

• Need to improve procurement practices

• PMMS undertook a structured assessment of the total expenditure using its spend analysis methodology

• PMMS supported the analysis with an identification and analysis of opportunities in key categories

• PMMS undertook a review of how key categories were managed and the approach to strategic procurement within the group

• Identified benefits of $16-22m across 6 key areas totalling $400m

• Designed high level strategic plans for the key categories

• Defined a completely new category and sub-category structure to integrate with SAP

• Provided a complete segmentation of all spend by category and sub-category outlining possible areas for organisational realignment

• Recommendations to implement tools and processes

Case study – Sourcing Project

Client Situation Approach Benefits

On-line Sports Betting

• Requirement to acquire data centre space and install equipment

• Strict timescales for acquisition and implementation influenced by regulation and contract expiry

• Capability was critical to maintaining business operability

• PMMS sourced potential data centres

• PMMS designed a functional requirements document in conjunction with stakeholders and agreed clear evaluation criteria

• Launched sourcing process following initial desktop evaluation

• Undertook detailed on-site appraisal of short listed suppliers

• Negotiated and agreed commercial terms

• Procurementcompleted in accordance with agreed timescale constraints

• Generated savings of around 25% or over €2m compared to previous like-for-like arrangements

Case study – Category Strategy DevelopmentClient Situation Approach Benefits

Pharmaceuticals

• £500m expenditure across 5 key categories

• Wholly outsourced supply chain – no manufacturing undertaken internally

• 5 key categories

• Need to improve the management of supply base relationships

• Cross-functional workshop approach to identify business needs and requirements in each category

• Reviewed the supply base within the context of growth plans across key markets

• Structured development and analysis of supply market options

• Reviewed key processes – risk management and supplier management tools

• Re-scoped the categories to better define the organisational boundaries and improve integration

• Developed new strategies for each of the five key categories resulting in a change of emphasis

• Recommendations made in regards to changes to supply base

• Introduction of new supplier management toolkit

• Introduced changes to the risk management process and regime

Case study – Process Review, Opportunity

Assessment and Training

Client Situation Approach Benefits

Power Generation and

Retail

Europe

• £1.0bn of external expenditure

• Sourcing methodology implemented for 2-3 years but not considered effective

• Knowledge levels good but application perceived to be poor

• Need to reduce cost base and improve management of complex commodity categories

• PMMS undertook a structured assessment of the total expenditure using its spend analysis methodology

• PMMS undertook a review of how key categories were managed

• PMMS reviewed supporting management practices, coaching and mentoring frameworks and assessed team skills

• Identified benefits of around £25m across 12 key commodities totalling £300m

• Developed outline source plans using cross-functional business engagement

• Upgraded the sourcing methodology developing an on-line intranet based tool

• Delivered training in the tool and strategic processes to 70 people

• Implemented coaching and mentoring frameworks supported by SMEs