Making it Stick

How our top CPOs are driving value all the way to the bottom line

Where’s the money?!

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1. A lack of enterprise-wide ownership and alignment with Procurement’s targets.

2. Silo-style environments rather than cross-functional collaboration.

3. Maverick supplier spend and other non-compliance that undermines Procurement’s

gains and damages relationships.

4. Unclear benefits definitions, measurements and validation processes that

have not been agreed upon across the organisation.

5. An immature cost-conscious culture that hamstrings CPO-level efforts to expand the

value Procurement contributes to the organisation.

Five hurdles to Making it Stick

Keeping CPOs awake at night

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The money drain

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Top six ways to Make savings Stick in your organisation

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Prove it!

“In order to articulate, capture and realise benefits, your information has be meaningful so you can act upon it.”

Paul Dobing, Executive Director, NSW Procurement at Office of Finance & Services

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Collaborate

“If it isn’t cross-functional,it’s dysfunctional.”

Naomi Lloyd, Procurement DirectorAsia Pacific at Campbell Arnott’s

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Expand the focus beyond costs

“You can only pressure supplierson cost up to a certain point before you risk compromising on quality and service levels. The key is to seek out different types of value in the supplier relationship.”

Mike Blanchard, General ManagerStrategic Procurement (CPO) Sydney Trains

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Align to business targets

“How procurement measuressuccess must be aligned to whatthe business views as success.”

David Henchliffe, Chief ProcurementOfficer, Santos

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Define benefits

“If benefits aren’t clearly defined, other parts of the business will dispute Procurement’s savings.”

David Macdonald, Procurement Director, Asia Pacific and Air BP

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Focus on compliance

“Having one way of working across the business aids process checks and compliance management.”

Ron Brown, General Manager Supply Chain at MMG Limited

Making it Stick: a call to action

The Faculty: Making it Stick in your organisation