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Past accomplishments as VP and senior sourcing leader

  • Double digit % 1st year net cost improvement with new structure and processes for several companies

  • 1st year net overall savings and inflation improvement of $37M for one company

  • Consistently manage inflation well below commodity increase rates

  • YOY net cost reduction of inflation and savings in most years

  • Global consolidation and alliance  processes successfully used to measurably improve total cost value such as delivery, inventory, quality, price, customer service, technical support and supply chain risk 

  • One year P&L turn around as GM for an equipment and leasing company

  • Moved major equipment company sourcing from no consolidation to a leading industry sourcing company

Multiple or single location process to maximize total supply cost savings long term

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Goal to select best of the best suppliers for  each sourcing category long term

  • Process can vary based on multiple/single locations, global/regional supplier structure or resources available

  • Ensure plan is fully supported by a senior management council in advance including necessary resources

  • Sourcing initiatives should be based on major part, equipment and indirect commodity categories for best leverage i.e. motors, compressors, steel, plastics, MRO, major service, logistics or outsourced complete units

  • Set up cross functional, multi-location and/or regional teams for managing and implementing the process

  • Ensure necessary data information and tools are available for analysis and decisions across all locations

  • Determine supplier key requirements from customers and your company's cross functional management teams

  • This includes customer high value requirements such as leading technologies, quality, delivery, supplier owned inventory, global/local service, price, technical support, reliability, product failure rate, supply risk and sustainability

  • Identify top potential global and/or regional sources using high level screening criteria for each category
  • In some cases consider buying consortium value deals already in place along with sources above
  • Develop 80/20 market basket bids to determine price value. (Select 20% highest value type parts or services)
  • Develop RFI question structure for suppliers with evaluation criteria scale for non-price total cost values
  • Set up formal communication event to provide requirements and bid packages to all targeted suppliers 
  • Suppliers to provide bid results and RFI answers within a specified time
  • Cross functional teams review RFI answers and quotes to determine short list of supplier selection
  • Set up bid and RFI review meetings with short list senior supplier management at their location
  • Ensure audits are performed on each supplier's operations and processes to ensure value can be achieved
  • Use analysis tools to identify final potential best supplier combinations globally and by region to negotiate
  • Set up a rigorous negotiation structure to ensure key requirements of suppliers can be met and committed
  • Ensure contracts cover all legal and performance requirements - leverage 3-5 years contracts for max value
  • Finalize negotiations and supplier selection using analytics and cross functional team 
  • Set up detailed plan to transition from present suppliers' parts and services to new suppliers
  • Set up an alliance process including ongoing evaluations and accountability for long term total cost value
  • Optimize company owned inventory including effective use of inventory owned by supplier
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